HGV Road User Levy Bill
Stephen Hammond Excerpts(11 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
I am today correcting the answer to a question that I provided during the ways and means resolution debate on the HGV Road User Levy Bill, on Tuesday 23 October 2012.
In response to the question asked by the hon. Member for Beckenham (Bob Stewart) on whether vehicles leaving a port of entry will have a physical sign on their windows indicating that they have paid (Official Report, column 881), I should have clearly stated that there will be no physical sign of payment, through the display of a paper disc, sticker or similar item.
Payment of the levy will be recorded in a database using the vehicle registration as the unique identifier. We expect that enforcement of non-payment will be carried out using automatic number plate recognition (ANPR) technology equipped cameras linked to this payment database, which will allow the Vehicle and Operator Services Agency to target and stop non-compliant vehicles. We expect that checks on vehicles will be made shortly after the HGVs have left the port at which they have arrived, and are on the UK road network. Further checks will be carried out in other locations. Non-compliant vehicles will need to pay a penalty of £200 before they are allowed to proceed. Cases that are taken to court will be liable to a fine of up to £5,000.
The use of a physical indication of payment is impractical, as drivers could have to physically change stickers or discs daily, and it would create an enormous and costly burden, in terms of administration of the charge. It could also create problems if relied on for enforcement, as stickers or discs could be forged.
The Department for Transport’s consultation on this subject was also based on a database linked enforcement method.
HGV Road User Levy Bill (Ways and Means)
Stephen Hammond Excerpts(11 years, 6 months ago)
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Huw Irranca-Davies (Ogmore) (Lab)
I am delighted to speak on behalf of hauliers not only from my constituency and nearby Bridgend, but throughout south Wales. People often forget that the M4 corridor in south Wales is still one of the greatest manufacturing hubs in the nation of Wales, and probably the United Kingdom. There is a wide variety, ranging from the very modern heavy manufacturing—I was tempted to say the very old—of Tata Steel, whose investment sustains many jobs for local hauliers, to Rockwool, the green insulation company in Heol-y-Cyw in my constituency. There are many other manufacturers—for example, in life sciences—and they all use various types of road haulage, sustaining jobs in the south Wales economy.
I echo the sentiments of the hon. Member for Spelthorne (Kwasi Kwarteng). The measure is broadly welcomed by all on the green Benches. Resolving the matter has not been unduly complex, given that we are dealing with the interpretation of European legislation in the UK, and the Minister is to be commended for bringing forward proposals. I hope to ask a number of constructive questions, both as someone speaking up for hauliers in my area and as a keen cyclist on the roads of London and in south Wales—the Minister will know where I am heading when I say that.
I commend the work of members of the Transport Committee, in particular my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman). She mentioned the number of reports that the Committee has turned out on issues pertinent to the measure, including most recently a report on foreign hauliers in the UK and how we get the level playing field that everyone wants. The Committee has also examined road charging and freight transport.
In a genuinely constructive way, may I ask the Minister to turn in his response to those who may fall outside the mechanism? I appreciate the complexity and difficulty of trying to devise the right mechanism, but my understanding—the Minister can correct me if I am wrong—is that as many as 15,000 smaller, greener, lighter haulage vehicles may not benefit from the provisions; for example, in Pencoed in my patch, there is a light haulier who may fall entirely outside the measure. If those 15,000 represent 5% or 6% of the whole UK fleet, they are a significant minority, and I suspect they may look with envy at the large hauliers who deal with Tata Steel in the constituency of my hon. Friend the Member for Aberavon (Dr Francis) or with Rockwool in Heol-y-Cyw in my patch. Is there something more the Minister can do to help the small hauliers? They face the same problems and challenges. He may reply that the Government have looked at every possible avenue and it cannot be done, in which case perhaps he could explain why.
Hauliers in my area are specifically asking for clarity about the new levels of vehicle excise duty. I think the Minister is likely to respond by saying, “That’s beyond my payroll. You’re going to have to wait for the Budget.”
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
indicated assent.
Huw Irranca-Davies
The Minister is already nodding. I am slightly disappointed, because hauliers want an assurance that under the provisions VED will be cut proportionately to the levy and that they will actually benefit. I have been in the same situation as the Minister, and it would be great if he could assure them that come what may, there will be proportionality and that people will gain, or at least not lose out.
The measure is all about creating a level playing field with our European counterparts, because we have been disadvantaged. Can the Minister give us an assurance that UK hauliers will not lose out? If many will gain, but some will unfortunately lose out compared with others, can he tell us why that is and who they may be? I suspect I may have difficult messages for some of the hauliers in my patch who assume they will all be winners under the mechanism.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
We have had an informed and educated debate with excellent contributions from both sides of the House. I am delighted that Members on both sides of the House welcome the Bill, but I am also delighted that it is this Government who have finally found a way to introduce it. As my colleague, the Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker), said in his short—perhaps too short for some colleagues—introductory contribution, the Bill will go a long way towards putting in place a fairer deal for UK hauliers and correcting the inequality that has existed for far too long.
As a number of Members who have spoken rightly recognised, freight bodies have long called for the introduction of charging, provided that the cost burden on UK hauliers remains roughly neutral. Introducing this charge will clearly help to level the playing field by ensuring that both UK and foreign hauliers pay equally for using the UK’s road network. The Government believe that it is right that vehicles that cause wear to our roads should make a payment to take account of that. HGVs registered abroad are likely to carry more weight on fewer axles than UK-registered vehicles, which means that they are more damaging to the roads. Therefore, it is all the more unjust that they currently do not contribute towards the maintenance of the roads they use, leaving the burden to fall entirely on the British taxpayer.
Bob Stewart (Beckenham) (Con)
I have been listening to the debate and assume that a foreign HGV will not be allowed to leave a port of entry without a sign on its windscreen showing that it has paid. Is that what the Bill means?
Stephen Hammond
I am delighted to confirm to my hon. Friend that that is what the Bill means, and I will expand on that further in my remarks.
Karl MᶜCartney (Lincoln) (Con)
Can the Minister confirm whether it is true that the wear and tear caused to a stretch of road by one journey by an HGV vehicle equates to 100,000 car journeys?
Stephen Hammond
I would like to be able to confirm that statistic, which may or may not be true, but I cannot do so at the moment. I will seek divine inspiration at some stage and write to my hon. Friend.
Stephen Hammond
I will, although I was going to address the hon. Gentleman’s remarks in a moment.
Huw Irranca-Davies
As the Minister seeks inspiration, could he also try to find some inspiration on what impact the introduction of longer HGVs has had on road maintenance?
Stephen Hammond
I would prefer to write to the hon. Gentleman about that, as I might invite Madam Deputy Speaker’s strictures were I to deviate too far from what we are supposed to be talking about. Having listened to his experiences as a Minister, I know that he will be aware of how easy it can be to do so from this Dispatch Box. Tempting though it is, I shall resist it this afternoon.
The largest and heaviest vehicles will pay a time-based levy of up to £10 per day or £1,000 per year. We consider that fair, proportionate and compliant with the relevant EU regulations. Foreign vehicles will be able to pay daily, weekly or monthly to enable them to maximise flexibility. Linking the levy and the vehicle excise duty payment, and working with the Treasury and the Chancellor to include reductions in VED payments in the 2014 Finance Bill, will ensure that the vast majority of UK hauliers will pay no more than they do today. There will be a zero administrative cost for most UK vehicles. Vehicles that currently pay VED usually do so annually. In future, UK hauliers’ VED will cover both the reduced level of VED and the new charge in one payment.
Stephen Hammond
I will give way, although I was going to try to clarify many of the points raised by the hon. Gentleman and others in a moment.
Huw Irranca-Davies
The Minister is being very generous. May I seek his explanation as to whether the technology that is being introduced by this ways and means measure is the same as that which could be used for further vehicle charging should the Government decide to embark on a wider road charging exercise?
Stephen Hammond
Yet again, the hon. Gentleman tempts me down a line that is grounded in speculation rather than anything else.
Stephen Hammond
I hope in a moment to respond to the hon. Gentlemen’s detailed remarks, and to those of the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), and I will invite them to intervene on me again if I do not do so.
Andrew Bridgen
I have a question that I did not ask during my brief speech. How often does the Minister envisage the road user levy will be reviewed by the Treasury? Will he consider calling it a Brit disc, which would be a nice patriotic name?
Stephen Hammond
I think that my hon. Friend will find that the levy will reflect some fluctuations in the exchange rate, but the level of VED is a matter for the Treasury and it is usually set annually. As to the change of name, we would like to get the Bill on the statute book with this name first before considering anything else.
We will ensure that hard-working hauliers do not face an additional administrative burden, so the levy will be part of one payment when they renew their vehicle excise duty. To ensure that all the benefits of the levy are felt as soon as possible by carriers, the Government intend to bring forward the implementation date for foreign hauliers by almost a year to April 2014. Due to the time needed to change systems for UK hauliers’ payments and to hold a robust procurement of the provision of the payment facility to foreign-registered hauliers, it is not possible to bring the overall levy introduction date any further forward than April 2014.
I should make it clear that this legislation is not designed as a precursor to increased charges on business. The charge has a clear, focused objective. The introduction of the levy is entirely separate from any other reviews that my Department might be undertaking. Whatever the outcome of those reviews, we will ensure that HGVs are not charged twice for using the UK road network.
Jim Fitzpatrick
I apologise for interrupting the Minister’s remarks. He has referred to two of my questions, one of which concerned the impact on HGV hauliers who are not covered and who will be paying extra, and the point that he has just made also reflects a question that I asked. I do not want to intervene on him repeatedly, so will he confirm that, as he said, he will answer my questions later?
Stephen Hammond
We believe that the database developed as a result of collecting charges from foreign-registered hauliers will help us to understand their patterns of road use better and will contribute to our efforts to improve the safety and compliance of all commercial vehicles travelling on the UK’s roads.
Finally, I should like to return to and, I hope, clarify some of the questions asked by hon. Members. The hon. Member for Poplar and Limehouse opened his remarks with a welcome for these measures, and I am pleased that he did so. His speech was the sort of speech that we expect from him; it was intelligent and inquisitive. He asked a whole range of questions about the draft Bill.
First, the hon. Gentleman asked about clause 3(2)(a). The clause allows us to consider the future exemption of roads. For example, Wales might want to introduce charging or we might agree with Northern Ireland that certain roads that cross the border should be exempted. On the administrative fee, I hope that my earlier remarks gave him confidence.
The hon. Gentleman asked about clause 9 and the rebate. The Bill allows us to set the administrative conditions that will pertain for rebates. For UK vehicles, charged rebates will be allowed on the same basis as those for vehicle and excise duty. An administrative fee, if introduced at all, will only be set at a level to cover the administrative cost.
The answer to the hon. Gentleman’s question about hypothecation and the money being paid into the consolidated fund is twofold. First, normal taxation rules apply and, secondly, the directive states:
“Member States shall determine the use of revenues generated by this Directive.”
I also point out to the hon. Gentleman that this Government’s spending review committed £30 billion for roads, rail and infrastructure. I should also like to highlight the other transport settlements and, indeed, the good news that we gave to local pinch-point schemes only 10 days ago.
Jim Fitzpatrick
I am sorry to interrupt the Minister again, but does that mean that the consolidated funds will not be hypothecated for transport issues, as has been requested by a number of his hon. Friends? Will the Department have to make a bid to the Treasury to get some of that money back?
Stephen Hammond
I have said that the normal rules will apply and that the directive allows the UK Government to spend the money in the way that they consider appropriate. The money will go into the consolidated fund. The Department for Transport has enjoyed robust discussions with the Treasury and got an excellent settlement for the infrastructure of this country. I have no doubt that we will continue to have robust discussions in the future and I am sure that we will continue to receive a good settlement for transport.
The hon. Gentleman asked about the number of hauliers paying more per year. The analysis so far shows, as he has pointed out, that 98% of hauliers would pay no more than £50 a year and that 94% would pay nothing at all. My understanding—I am sure that we will explore this and I may be able to inform the hon. Gentleman later of the latest numbers—is that the maximum loss for conventional HGVs that are either articulated or rigid and do not have a trailer would be £79 a year, based on current exchange rates. Unfortunately, however, our analysis of 7,000 rigid vehicles that tow a trailer has found that 40 vehicles would probably suffer a penalty of some £300, but that is only 40 out of 7,000, which is a significantly small part of the overall haulage fleet of the United Kingdom.
The hon. Gentleman also asked about the rebate that might be applicable to UK hauliers using foreign roads. As is the case with vehicle and excise duty, it is not possible to get such a refund, so the charge would be cheaper than any daily charge. UK hauliers are unlikely to benefit from such a refund.
The hon. Gentleman then asked some general questions, some of which I tackled earlier. On the staging of the levy, he will have heard me say that we have brought the date forward so that there will be a simultaneous introduction in April 2014. He will have also heard me set out the conditions for paying VED at the same time as the levy, so they will net each other out.
My Department does not believe that the opt-out from the European directive on traffic law enforcement will have any implications. We have a robust strategy of enforcement. Vehicles must pay before using a road in the UK and we can stop any that do not and immobilise them until a fine is paid. Again, I am sure that we will explore that matter in Committee.
The hon. Gentleman made some closing remarks about the environment. There is no change to the incentives for greener vehicles. We are committed to considering charging based on polluting carbon vehicles in the future, but for the moment the charging that will be put in place is practical and enforceable. I believe that there will be no disincentives for the green lobby.
I listened carefully to my hon. Friend the Member for Brigg and Goole (Andrew Percy). I thank him for his welcome. He echoed the remark from my hon. Friend the Member for High Peak (Andrew Bingham) about the complex way in which we are doing this, because of the EU rules. However, I am sure that he, like me, is delighted that we are doing it anyway and will raise a cheer for that.
The Chair of the Transport Committee raised a number of points. We will tackle cabotage and the safety issues that she raised on Second Reading and in Committee. However, I say to her directly that we will ensure that the Vehicle and Operator Services Agency has all the necessary resources to ensure that its enforcement procedures are workable. We believe that the measures will ensure that the collection procedures are completely workable.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Will the Minister clarify whether in his future discussions about safety he will raise improving the safety of cyclists, who are particularly at risk from HGVs?
Stephen Hammond
I thank the hon. Lady for those remarks. Her colleague the hon. Member for Ogmore (Huw Irranca-Davies) raised that issue and I am about to respond to his points, so I will address her remarks at the same time.
I welcome the recognition by my hon. Friend the Member for Spelthorne (Kwasi Kwarteng) that this is a commitment being delivered upon. He is no longer in his place, but I was delighted that he recognised that. He asked the rhetorical question: is it right that foreign users contribute to our roads? Of course it is. That is why this measure is being put in place and I am delighted that we are doing it now.
The hon. Member for Ogmore opened his excellent contribution with his impassioned support for businesses along the M4 corridor. I will try to answer some of his questions. He, too, asked about enforcement, with particular reference to the police’s role in enforcement beyond VOSA. The police, of course, can enforce this legislation and prosecute offenders. It will not be their main objective, and the primary responsibility for enforcing it will lie not with the police but with VOSA, as I have made clear.
The hon. Gentleman asked whether, if foreign hauliers could pay the bill on a daily, weekly, monthly or annual basis, there would be issues to do with the setting of the rate and the ability to do so. I would say two things to him in response. First, we are allowing that flexibility to ensure that we capture everybody who intends to come to the country. Secondly, at the same time the level of the payments will be set annually in the Finance Bill.
The hon. Gentleman made some remarks about how we will offset the compensation for UK hauliers. I hope that my remarks to the hon. Member for Poplar and Limehouse will have clarified that matter for him. Equally, on the question of the charge level, as he knows, the Eurovignette sets a maximum of €11 a day for time-based charges. The maximum that that is likely to increase to owing to inflation is €12. Unlike other EU countries, we are not going to have a lower daily rate, but will look at the daily rate that is permissible.
The hon. Member for Ogmore rightly asked what action I and my officials had taken to reassure ourselves that the levy was not discriminatory. I took quite a lot of action because, as he might well guess, my first concern was that if there had been a significant time delay it would have discriminated against UK hauliers. I am delighted that my officials, working with EU officials, have now been able to secure the agreement that we can introduce the duty for both groups in 2014. I confirm that to ensure that was the case, officials spoke to the Commission before the consultation, and it indicated that it was content with our emerging proposals.
The hon. Gentleman asked about the amounts that we intend to charge. We are clear that they are as set out in the directive and that our plans comply fully with it.
I will now answer a question that I thought the hon. Gentleman might ask, just to help him along—I am in that kind of mood this afternoon. I thought he was going to ask me why the Welsh Government might think it necessary to lay a legislative consent motion. He did not, but let me put it on record that in our view, that is not necessary. The HGV road user levy is a tax, and taxation is a reserved matter. I believe the Welsh Assembly is concerned that there will be some problems because EU law prevents double-charging for the same stretch of road except in certain circumstances. However, we have said that if a devolved Administration wanted to introduce a charge or toll, we would modify the HGV road user levy as necessary so that could be done. I confirm that my officials and Welsh officials have spoken about the matter in the past week. The Scottish and Northern Irish Governments have decided that no legislative consent motion is necessary, but it is of course for the Welsh Government to decide whether they wish to pursue one. I thought I might take the opportunity to put that on record.
I believe that I have covered all the hon. Gentleman’s queries, except about cycle safety campaigning. He will know that I was delighted to be able to be at the National Transport Awards the week before last, along with my fellow Under-Secretary of State for Transport who was perhaps on more verbose form that night than in the House today, and to present an award to Philip Pank, the journalist from The Times. The hon. Gentleman will also know that in my second week in the job, I was delighted to be able to launch the Think Cyclist campaign.
As I have indicated, road safety is a key road policy priority for the Government, and the hon. Gentleman will have noted that we have made significant extra money available to local councils in the past six months for local cycle safety solutions. I am happy to work with the industry throughout the Bill’s progress and thereafter to ensure that road hauliers are aware of the need for cycle safety. I am aware, of course, that many of them already recognise that imperative.
My hon. Friend the Member for North West Leicestershire (Andrew Bridgen), spoke about his passion for road haulage. He raised a couple of matters on which I may be able to give him some clarity this afternoon. Although he recognised that there would be a charge of £200 for roadside infringements and a maximum fine of £5,000 for cases that go to court, he was concerned about how we would be able to enforce that. We will be able to take deposits from road hauliers if they do not have a UK address and, as has been pointed out, we intend to pursue them so that the charges are made payable before they enter the UK road system. The necessary enforcement measures will be in place if anyone attempts to enter for a second time without paying those charges.
My hon. Friend also asked about Northern Ireland. I have already put it on record that we believe that this is a tax matter, and therefore a reserved matter that will apply right across the UK. However, as I said when the Welsh Government raised the issue, the Government have no intention of reducing the ability of the devolved Administrations to introduce tolling or charging if they so wish.
My hon. Friend asked specifically about the Irish Government, who have written to the Department asking for the charge not to apply in Northern Ireland. That is partly because they make a financial contribution to some road improvements in Northern Ireland, which they do because Irish hauliers use those roads and benefit from them. Furthermore, Ireland already has road charges in the form of tolls, and should the new charge apply in Northern Ireland, it would be roughly the same amount as those existing tolls—a round trip between Belfast to Dublin would incur roughly the same amount. We have suggested that if the Irish Government were to propose a set of roads that criss-cross the border, we will look to exempt them from the charge.
The hon. Member for Dundee East (Stewart Hosie) raised a point about the 12-month period, and I will explore that matter further and write to him if he will accept that. My hon. Friend the Member for High Peak spoke about the finest quality limestone and how it gets moved around the country. I hope that his local press statement will say, “If it’s thank you Brussels for nothing, it’s thank you to this Government for something”—I am sure that is how he will phrase it. I have obviously heard his strictures about the new bypass from Mottram to Tintwistle, and the bridge at Chapel Milton. I have no doubt that an invitation to come and visit those places is already winging its way from High Peak to Great Minster House, and I look forward to receiving it.
Jim Shannon (Strangford) (DUP)
The Minister referred to a previous matter in relation to the Irish Government. A new bridge is to be built across the narrows, near Warrenpoint, and the Irish Government are going to pay for that. There will be no toll on that bridge. Is there an agreement with the Irish Government that they provide the bridge and there will be no toll?
Stephen Hammond
Well—[Interruption.] Mr Deputy Speaker, you are right on all matters, and certainly on that one. If I may, I will write to the hon. Member for Strangford (Jim Shannon) as I am afraid I do not know the answer. Although I could stand here and talk about something, it is better to say that I will write to him when I have the answer.
My hon. Friend the Member for Braintree (Mr Newmark) congratulated a number of his road hauliers—rightly so—and he got to the essence of the argument, which is about equity and economics. He was right to point that out and place it on the record, and I am delighted that his constituency has benefited from the pinch points plan that the Government announced two weeks ago.
This has been a well-informed debate and we heard two contributions, including from my hon. Friend the Member for Milton Keynes East (Iain Stewart), about modal shift.
Stephen Hammond
Sorry. My hon. Friend the Member for Milton Keynes South—an important distinction—made an important point about modal shift and the encouragement of rail freight, and I combine that with the contribution from my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who is no longer in her place. She made a point about the A14 being a key artery, and I will be delighted to meet her over the next couple of days to discuss that matter. She also made the point about a modal shift now that improvements have been made to the rail system out of Felixstowe. That is absolutely right, and I am convinced that the Bill does nothing to impair modal shift, but will enhance it.
Andrew Bridgen
One important question has not been asked in this debate, and if the Minister knows the answer, perhaps he will share it with the House. What is the estimate for the amount of money that will be raised from foreign hauliers by the introduction of the road user levy?
Stephen Hammond
That is an important question, and my hon. Friend is right to say that it has not been raised so far. The Department estimates that somewhere between £18.7 million and £23.1 million will be raised at current prices, but I am sure that as the years go by, that sum will increase.
I believe I have comprehensively reviewed my colleagues’ contributions—
Mr Newmark
Hon. Members have articulated the views of the road haulage industry in their respective constituencies. Will the Minister spend a couple of minutes going into a little more detail on the consultation he had with the industry and on its input, and explain why the Bill is the silver bullet that will make the road haulage industry in the UK happy?
Stephen Hammond
I would like to tell my hon. Friend the dates, places and times of the meetings, but unfortunately the excellent preparatory work on the Bill was done prior to my time in this role—it was done by the current Minister of State, Northern Ireland Office and officials when he was an Under-Secretary of State for Transport. As I have said, an extensive consultation took place and has been published. The measure received widespread support, albeit with a number of questions on how the scheme might work and be implemented, which has been reflected in the debate—a number of the questions were similar to those raised by road hauliers.
However, I am delighted that we have reached the stage we have reached today. The Bill is widely recognised in the House as a welcome measure for UK hauliers and UK industry. All hon. Members have welcomed it. I recognise that this is a slightly unusual way to introduce legislation, but it has enabled us to have an extensive and inquisitive debate.
Andrew Percy
We look forward to welcoming the Minister to Brigg and Goole shortly—he will be getting an invitation in the post. Will he respond to the question I posed to him earlier on whether we could expect an increase in dual-registered vehicles as a result of the measure?
Stephen Hammond
My hon. Friend is right and I apologise for having failed to respond to that part of his excellent contribution. I am not sure I have at my fingertips the exact number of dual-registered vehicles in the UK, or the number of those likely to enter the UK, or the likely growth in the number of dual-registered vehicles—[Interruption.] It is just as my hon. Friend the Member for North West Leicestershire points out. However, as I have said to several hon. Members, I am happy to write to my hon. Friend the Member for Brigg and Goole. I am sure my letter will include my response to his kind invitation to visit Brigg and Goole, which I look forward to doing. One of the great pleasures of this job is the chance to visit all parts of the UK.
Martin Vickers (Cleethorpes) (Con)
In order to arrive in the Brigg and Goole constituency, the Minister will travel along the A180, which is heavily used by road hauliers in Stallingborough and Immingham dock in my constituency. One problem is that the A180 has a very old concrete surface that causes great disturbance to local residents. The £18 million to £23 million that he will raise from the measure will more than cover the cost of improvement. I therefore invite the Minister to visit Cleethorpes and Brigg and Goole, and to journey on that rough road.
Stephen Hammond
I thank my hon. Friend for that detailed explanation of the problems with the A180. I have no doubt that the chief executive of the Highways Agency will be on to me in the morning to tell me what his plans may be at some stage in the near or distant future for that road. I am bound to reflect that when I was in this role in opposition, I was spokesman for the rail industry, and by the end of it I had a near-encyclopaedic knowledge of almost every rail station and route in this country. I am increasingly finding in government that that opportunity is being extended to me on the road system. I am really looking forward to visiting the A180 on the way to Brigg and Goole. I have no doubt that my hon. Friend will invite me to stop in his constituency as well.
We have had a long and interesting debate this afternoon and we have fully explored the legislation that is the subject of this ways and means resolution. I was delighted that my ministerial colleague was able to introduce the debate earlier and I am also delighted to commend it to the House.
Question put and agreed to.
Resolved,
That provision may be made for charging a duty of excise, to be known as HGV road user levy, in respect of heavy goods vehicles used or kept on public roads in the United Kingdom.
Ordered, That a Bill be brought in on the foregoing Resolution;
That the Chairman of Ways and Means, the Prime Minister, the Deputy Prime Minister, Mr Chancellor of the Exchequer, Mr Secretary Hague, Mrs Secretary May, Mr Secretary Grayling, Mr Secretary Moore, Mr Secretary McLoughlin, Mrs Secretary Villiers, Mr Secretary Jones and Stephen Hammond presented the Bill.
Hgv Road User Levy Bill
Stephen Hammond accordingly presented a Bill to make provision charging a levy in respect of the use or keeping of heavy goods vehicles on public roads in the United Kingdom, and for connected purposes.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 77) with explanatory notes (Bill 77-EN).
HGV Road User Levy
Stephen Hammond Excerpts(11 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
For the benefit of Members of the House, I am today setting out some details of the HGV Road User Levy Bill, debated in the House of Commons on Tuesday 23 October. The Bill itself will be walked in after the debate on the Ways and Means resolution.
The HGV Road User Levy Bill with introduce charges for all HGVs that weigh 12 tonnes and over for using the UK road network.
The Government realise the importance of haulage services provided by both UK-registered and foreign-registered vehicles to our economy, ensuring that goods are brought in and efficiently moved around the country. The key aim of this Bill is to ensure a fairer arrangement for UK-hauliers to help improve their competitiveness.
The legislation being introduced fulfils a commitment in the coalition agreement and is designed to remove an inequality, whereby UK hauliers pay to use many roads abroad, but foreign-hauliers do not pay to use roads in the UK. The levy is designed to be cost neutral for UK hauliers, through offsetting reductions in vehicle excise duty (VED) payments. Changes to VED will be included in the Finance Bill 2014.
The levy will be time based and will vary according to the vehicle type, weight and number of axles. This seeks to ensure that the charging scale is linked to the amount of damage a HGV causes to a road. The levy will be a maximum of £1,000 per year or £10 per day for the largest vehicles. UK-registered HGVs will pay the levy for either a six-monthly or annual period. Foreign-registered vehicles can pay the levy either daily, weekly, monthly or annually. Rebates will be available under certain circumstances. Revenues will be paid into the consolidated fund.
The Bill makes it an offence to fail to pay the levy and, on summary conviction, a fine of up to level 5 on the standard scale (currently £5,000) will be payable. The Bill also provides for the offence to be subject to a fixed penalty and it allows the Secretary of State to refuse to issue a vehicle licence if he is not satisfied that the appropriate levy has been paid.
The scheme will be administered by the Driver and Vehicle Licensing Agency (DVLA) or the Driver and Vehicle Agency (DVA) in Northern Ireland. A private company will be contracted by the Department for Transport to administer the payment scheme for foreign-registered HGVs. The contractor will be required to maintain an electronic database of foreign-registered HGVs for which a levy has been paid. UK enforcement agencies will have access to the database.
The scheme will be enforced by the Vehicle and Operator Services Agency (VOSA) in Great Britain and the Driver and Vehicle Agency (DVA) in Northern Ireland. These agencies currently enforce UK and foreign hauliers’ compliance with regulations on vehicle roadworthiness, drivers’ hours and other road safety regulations. The police also have enforcement powers.
The Department for Transport conducted a consultation exercise in early 2012, and the findings of this are also being published today, and will be available on the Department for Transport’s website at the following address:
www.dft.gov.uk/consultations/dft-2012-03
Marine Navigation (No. 2) Bill
Stephen Hammond Excerpts(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sheryll Murray
I would be more than happy to meet the RYA, which I know has concerns about the general rules of direction. I would like to reassure it, and I am sure the Minister will back me up. A number of ports already operate under general rules of direction, which must be consulted on fully before they are in place. If a competent harbour authority does not take note of responses to consultation, it could be subject to judicial review. I should like to meet the RYA—we need to get the clause right.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
I am listening to my hon. Friend’s request and would like to put it on the record now that I am sure I would be delighted to join that meeting.
Sheryll Murray
I am grateful to the Minister. When the association holds its events, it can have designated areas of the sea where those events will not be disrupted by other leisure users sailing through a regatta, for instance. I would be more than happy to meet members of the association.
I am confident that my Bill would benefit the UK maritime sector and I am grateful to the British Ports Association and the UK Major Ports Group, which have provided me with considerable support and advice on the Bill. The ports industry is one the UK’s hidden success stories. It is an incredibly competent, competitive and customer-focused industry that operates largely out of the public eye, because of its efficiency and the safety of its operations. Despite the lack of awareness of the ports industry, our whole way of life depends on its success. Some of the anomalies in the current maritime legislation that I seek to correct in this Bill may seem arcane, but I have tried to show that the industry that the changes will assist is far from irrelevant. I humbly ask hon. Members to support the Bill today.
Andrew Miller (Ellesmere Port and Neston) (Lab)
The hon. Member for South East Cornwall (Sheryll Murray) is right in her concluding remarks about the importance of the ports industry to the UK and its economy. We take for granted the significance of ports around the country, but collectively they do an enormous amount of work to ensure that the goods we rely on—both imported and exported—are managed sensibly.
Ports are under wildly varying forms of ownership, and some of them need a tougher regulatory regime than others because of the sea conditions they experience. Some estuaries are particularly difficult and some are incredibly busy. For example, I used to live on the south coast, and Southampton in particular is incredibly busy and clearly needs a regulatory regime that is fit for purpose. Other, smaller ports need a much lighter touch that will meet their needs. In the north-west, the River Mersey is very complex to navigate and needs a pilotage system that is strong and robust. That is especially necessary at certain states of the tide, when serious seas are running out in Liverpool bay. I have been out in the bay both when it has been as flat calm as the carpet in front of us and when the ship has virtually stood on its end with every wave. In such environments, entering a river mouth needs careful handling by expert pilots and we should give credit to pilots in our ports for the fantastic work that they do.
Over recent years, there have been some changes that are controversial in local areas, as well as some that have been adopted with the support of local pilot associations. I have received a significant amount of correspondence from a constituent who is a lawyer and has periodically given advice to the local association. He has one fundamental objection to the Bill, and with the House’s indulgence, given that these issues are so important to the safety of our seafarers and others operating in and around our ports, I will put it on the record and invite the Minister to respond as positively as he can. He is familiar with my constituent’s correspondence, because much of it has been directed at him.
The substance of the objection surrounds clause 2(1), which would broaden definitions used in the Pilotage Act 1987. My constituent asserts that this is an
“obvious and gross reduction in the standards applicable in compulsory pilotage areas that…cannot be (and is not) lawful, for all of the reasons raised since the Bill was introduced.”
Those reasons are set out elsewhere in correspondence. He wrote to the Prime Minister expressing his concern on 30 September:
“The Parliamentary Under Secretary of State at the Department for Transport has made it clear that HM government intends to remove regulatory burdens and to relax standards in compulsory pilotage areas. The point which he fails to address (as mentioned in my letter of yesterday’s date, herewith) is that the governmental intention contravenes all known law, in particular the following provisions:-
1. The common law obligation to maintain the highest possible standards in compulsory pilotage areas. This obligation was confirmed and acknowledged by Lord Bingham the Lord Chief Justice in the Court of Criminal Appeal in April 2000 when allowing a reduction in penalty to Milford Haven port authority following its admission of guilt in the SEA EMPRESS incident of 1996. Lord Bingham noted with approval that efforts had been made to improve standards.
2. In a report published in April 2002, “The New Humber Pilot Service”, the Department for Transport, Local Government and Regions confirmed that the obligation identified in the SEA EMPRESS case is strict and onerous.
3. The declaration of the International Maritime Organization (representing the maritime concerns of the United Nations Organization) that developed standards in pilotage (and not merely in compulsory pilotage areas) should be not merely maintained but enforced. This declaration is in Resolution A960 of 2004, to which the United Kingdom is a signatory.
It follows necessarily that any relaxation of standards in a compulsory pilotage area (as HM government now specifically proposes) is unlawful; and that the obligation to maintain standards remains accordingly strict and onerous. This you should know. The Department for Transport has known it since 2002 at the latest.”
Stephen Hammond
Let me try to help the hon. Gentleman. His constituent is a prodigious and prolific writer, and he has written to the Department along similar lines. Clause 2 deals with pilotage exemption certificates. Clause 2(1)(a) and (b) substitute “master” and “mate” with
“a member of the crew”.
The provisions are, of course, still subject to section 8 of the Pilotage Act 1987, which clearly states that a competent harbour authority can issue a pilotage exemption certificate only when it is certain that the applicant’s
“skill, experience and local knowledge are sufficient for him to be capable of piloting the ship”.
That is why the Government are confident that what we are doing does not represent what the hon. Gentleman’s constituent has written to say. Moreover, when combined, the provisions in the Bill will strengthen the allocation of exemption certificates, as they will enable competent harbour authorities to withdraw them much more speedily, if for any reason they are no longer confident of the certificate holder’s skill, experience or local knowledge. I hope that the hon. Gentleman will accept that reassurance, but if he wishes to pursue the matter further we can do so in Committee.
Andrew Miller
That is an extremely helpful statement to have on the record. However, I want to pursue the Minister a little further before I relax my guard, because it follows from what he says—I hope that he will correct me if I have misunderstood this—that the exemption for an individual cannot be granted willy-nilly. I know that there has been discussion in the Department and that people have talked about different ranks on the ship, but it is not a question of what rank the person holds; it is a question of their qualifications and competence to undertake the task in question. As I understand it, that is measured by two things: first, the individual’s ability to meet the requirements of the port authority in question; and, secondly, that the exemption is for that specific vessel and that vessel only. I would be grateful if the Minister put on record his agreement that the exemption under those circumstances would not even, for example, extend to a sister ship, and that it must meet the standards that are normally in place for the port in question.
Stephen Hammond
I am obviously disappointed that the hon. Gentleman feels the need to have his guard up when I am at the Dispatch Box, but let me reassure him that the position that he has just outlined is indeed correct. The exemption does not refer to rank—it refers to qualification—and it does refer to the specific vessel.
Andrew Miller
That is very important. I would suggest to the hon. Member for South East Cornwall, who has moved that the Bill receive its Second Reading, that, for the sake of clarity and ensuring absolutely no ambiguity, there is an argument that clause 2(1) should be gently amended in Committee to make things so clear that no court could misinterpret what the Minister and I—and, indeed, the hon. Lady—clearly understand to be the correct position.
Andrew Miller
If the hon. Gentleman is not right honourable, he ought to be. I accept his comments; I was jesting when I said that he represented the RYA. Anyway, he raised a legitimate point about harbour authorities. As I said, there is a complex range of port and harbour authority models, from local authority to private ownership. I want to be certain that a privately owned port, operating in the context of the Bill, is not empowered to act as judge and jury in relation to what happens within its remit.
Yesterday evening I had a very constructive discussion with the hon. Member for South East Cornwall and some of the Minister’s expert officials, and I am extremely grateful for that. I think I understand the position, but, again, I should like further clarification. I assume that it would not be in a harbour authority’s gift to block a vessel’s access unilaterally, unless it was so oversized that it could not get into the port or its cargo could not be handled appropriately there, and that only rarely could a privately owned port authority take restrictive action against the owner of the ship or the cargo.
Stephen Hammond
Perhaps I can help the hon. Gentleman. First, the obligation that is placed on harbour authorities is placed on all of them, irrespective of the mode of ownership. However, as the Bill clearly states, harbour authorities will be responsible for consulting on any harbour direction that they propose. They will be obligated to identify the correct interested parties, and they must invite them to comment on the proposed direction. If any individuals or groups feel that they have not been adequately listened to in any consultation, they are of course entitled to challenge that direction legally.
Andrew Miller
That is an extremely helpful intervention. I appreciate that the Minister, for understandable reasons, does not want to be the regulator in this structure, but I am trying to seek reassurance that the small player is not disadvantaged by the mighty corporation here. Can the Minister give comfort to small yachting associations or small ship owners by indicating that if they felt they were being disadvantaged by the regulatory regime being imposed in a particular port, the might of his Department would be there, as a last resort, given that the vehicle of judicial review is a bit pricey, to support David over Goliath—although David did well on his own?
Stephen Hammond
David certainly did do well on his own. The key point that I re-emphasise to the hon. Gentleman is the obligation that harbour authorities, of whatever size, have to parties of whatever size to ensure that they have identified all those legally obligated and interested parties. I am prepared to look at that assurance again in Committee, but I think it is in place.
Sir Peter Bottomley
As directed, I am very grateful. My hon. Friend reminds me that the first woman named in the New Testament is Tamar, who appears in the second verse of the first chapter of St Matthew.
My hon. Friend makes the sensible point that people want to do sensible, important and serious things. The Minister has received a letter from the Royal Yachting Association. I will not read it, but I think I am right in saying that it would prefer not to have clause 5. It was withdrawn from what was effectively this Bill when Lord Berkeley introduced it in another place, but it has turned up again. No one is complaining about that, but the question is whether it should stay in. Without making any threatening noises, I shall say that I am sure the Bill would have as easy a passage without it as with it.
We must then consider what is the alternative. One option is for clause 5 to remain as it is, surviving Committee and Report and going to another place, but there are alternatives—it is either in, out or modified.
The RYA put to the Minister a suggestion for its modification for him to take advice on. My hon. Friend the Member for South East Cornwall, in consultation with the Minister and his advisers—I am sure they are working closely together—might want to see whether the RYA’s suggestion could have what I might call a moderating effect.
If I may, I will spell out what I understand to be the RYA’s position. Clause 5 would modify the provisions on harbour revision orders. As we all know, some harbours already have the power to issue them, obtained through statute or in other ways. Clause 5 would enable harbour authorities in this jurisdiction or the Scottish nation to give general directions to ships, including recreational craft. Members might not expect this, but when I come across the Solent into Portsmouth harbour, my open canoe is classed as a ship, which is a bit grand. That is even better than the promotion that the hon. Member for Ellesmere Port and Neston gave me when he confused me with my wife.
The power in clause 5 is expressed as applying to ships within, entering or leaving a harbour, and relates to their movement, their mooring, the nature and use of their equipment and the manning of them. As I have been reminded, a pre-consultation requirement is included, stating that a harbour authority should
“consult such representatives of users of the harbour as the authority think appropriate.”
We understand that it will do that properly.
Contravention of a general direction would be a criminal offence. That is not new, but it might apply if a new harbour revision order came in.
Stephen Hammond
I will try to be as helpful to my hon. Friend as I was to the hon. Member for Ellesmere Port and Neston (Andrew Miller). As my hon. Friend points out, there is a requirement of pre-consultation. Prior to any consultation, the Department would issue directions as to what should be consulted upon. I believe that that potentially covers some of his objections.
Sir Peter Bottomley
We are making progress, and I am grateful to my hon. Friend.
I assure my hon. Friend the Member for South East Cornwall that I will not take all that long, but to aid the process I point out that a number of individual authorities have obtained powers of general direction over the years, starting at the time of les événements, when the permissive society was invented in 1968. Such powers of direction have generally taken the place of byelaws. Unlike directions under clause 5, which harbour authorities could issue, byelaws have to be confirmed by the Secretary of State and are subject to what most people would regard as clear checks and balances in addition to consultation. The current byelaw process involves consultation, so there is nothing new about that. The consultation element is in place already and will remain. The question is about the checks and balances that exist. I am not thinking of accusing any harbour authority of having malevolent wishes towards recreational users or other classes of ship.
I pay tribute to what the RYA does in training young people on the water in motor vessels and sailing craft. It has become a better and better organisation that does more and more good for more people, and if other organisations could do the same thing by training up the young and helping them to become first assistants and then qualified instructors, there would be far more value and purpose among our people on land as well as at sea.
The RYA has become increasingly concerned in recent years about the potential of powers of general direction to be exercised indiscriminately and in a manner that is unnecessary and harmful to the lawful exercise of recreational and other rights. Not every campaign the RYA takes up is wrong—in fact, nearly every campaign I have seen it run was right, and I admire the way in which it works with the British Marine Federation. They provide in partnership, without overlap, a seamless approach to the law and the use of our waters.
Let me give a list of some of the questions considered by the RYA about the powers of general direction, and whether they are fully merited. There are some powers that everyone can accept, but whether they are sufficiently merited to be unqualified or without the moderation that I hope the Minister will mention is a matter for debate.
Making general directions involves the creation of new criminal offences, which local harbour authorities may be seen as ill-equipped to do. Even democratically elected local authorities, in their other roles, do not normally have powers to create criminal offences, and the Bill contains none of the supervisory safeguards usually imposed on law-making bodies. This may be political theology or philosophy, but why should a harbour authority be different from a local authority?
The powers of general direction can be seen as running counter to the Government’s localism policy by granting an unelected harbour authority law-making powers that are not subjected to democratic checks and balances and full transparency. Most of us could argue that because harbour authorities exist for a particular purpose, and because those who are appointed to harbour authorities are there to provide expertise and a contribution, we should not be too worried about that. One should put it on the record that those people are not democratically elected, and the localism agenda is not just about saying that we are not going to do things in Whitehall—or in my day, the Department for Transport on Marsham street—but that things will be done locally by locally elected people. I do not criticise the harbour authorities for not being elected, but there is a distinction.
Under the power, general directions could be made over the wide areas used by recreational and commercial traffic in a disproportionate manner, without proper risk assessment or consideration of the full implications or possible alternatives. They could be used to impose significant and potentially burdensome restrictions on the navigational use of recreational craft. Many harbour authorities have jurisdiction over substantial areas going out to sea, not just partially enclosed harbour areas. Again, I do not want any hon. Member who arrives late to the debate to think that I am attacking the harbour authorities. I am just asking what protections there could be, and whether we need a system in which the potential for things to go wrong could be anticipated and perhaps built into the legislation.
There have been past examples—this is not about harbour authorities and harbour revision orders—where some in government picked up the idea, wrongly in my view, that small recreational craft could start contributing to light dues. We all get the benefit from navigation, but how on earth do we get a person—me in my Mirror dinghy, or one of my sons, daughters or granddaughters in their craft—to contribute to that? There is a question of where to draw the line, but at some stage it must be drawn some way away from ordinary recreational craft that might, under this legislation, be regarded as ships.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
We have had a fascinating 90-minute nautical exploration this morning. We were safely taken out of harbour by my hon. Friend the Member for South East Cornwall (Sheryll Murray), and I am pleased that she has been able to introduce this Bill because I met her several times when I had this role in opposition and she was campaigning for the fisheries industry. She and her family have devoted their lives to the marine and maritime industries through both tragedy and good times, and I congratulate her on her success in the ballot.
With the hon. Member for Ellesmere Port and Neston (Andrew Miller), we skirted round choppy waters—we avoided sailing right into them—and I shall say more about his contribution in a moment. My hon. Friend the Member for Thurrock (Jackie Doyle-Price) is of course right that my role should not be to neglect this issue, but nor should it be to get in the way of the maritime industry. I shall address her remarks about clause 7 later in my speech. I know that the knowledge of my hon. Friend the Member for Worthing West (Sir Peter Bottomley) about the maritime environment of the Isle of Wight is extensive. He could pilot anything into certain parts of Seaview and Bembridge. But he is right, of course. If his autobiography is as well written as “The Riddle of the Sands”, it will go down as a literary tribute. If he will allow me, I will address some of his remarks when I discuss clause 5.
The maritime industry carries out its activities every day without fanfare or demand, but, as was pointed out at last night’s event, where I drank copious amounts of tomato juice, all too often, as people eat their lamb or take their car to the continent for holiday, or if they are wealth creators in manufacturing, it is taken for granted that the finished goods will either be imported or exported around the world, while the mechanism by which that occurs is not always appreciated. Far too many people take the maritime industry for granted, but I know that many in the House, including those who have contributed to this debate, do not. It is an industry that works come rain, wind or shine.
I was delighted to attend the British Chamber of Shipping event and to visit Felixstowe this week to see a port operating and securing the future of UK plc. I recognise the vital contribution that the industry makes to the UK, its living standards and its prosperity, and it is right that nothing be done to hinder the safety of anyone working in it. Everything in the Bill is intended to ensure their safety. I recognise the hard work that the employees and those who work self-employed at ports and on the ships contribute every day to keeping this country moving and competitive. I also recognise the managers whose freight operations ensure the most streamlined and efficient operation of ports. That is important not only for the maritime industry but for our country as a whole.
With that in mind, I thank my hon. Friend the Member for South East Cornwall for introducing her Bill. I am aware of its antecedents and the hard work done then. The Bill will not only ensure that the UK’s impeccable safety record is maintained but, more importantly, will help to make the industry ever more efficient in its day-to-day activities and ensure that we have an industry fit for the 21st century.
I do not intend to speak at length about every clause, because my hon. Friend has already put the case extraordinarily eloquently. A few issues have been raised during the clause-by-clause examination, about some of which I hope I have reassured hon. Members sufficiently to ensure the Bill’s safe passage to Committee, but none the less let me put on record some comments about each clause. Clauses 1 to 4 cover pilotage, the pilotage exemption certificate and the removal of pilotage powers that are no longer required. My hon. Friend has given a detailed account of the pilotage profession, its high level of proficiency and independent thinking, and the knowledge of the ports, their waters and local conditions that all pilots require.
Clearly, my knowledge does not compare with my hon. Friend’s in this matter, and I cannot add much, other than by observing that pilotage is a tradition and an industry stretching back almost 3,000 years to ancient Greek and Roman times, when pilots were local fishermen employed by ships’ captains to bring vessels into port. UK pilotage custom, practice and legislation are more modern than they were 3,000 years ago and are governed by the Pilotage Act 1987.
Many ports and harbours have a long and distinguished tradition dating back hundreds of years, but I will resist the temptation to give a history lesson on every port and harbour, and their distinguished traditions. As several people have pointed out, however, trading patterns change and ships are much larger than they used to be. Change is driven by improvements, economies of scale and advancements in ship-building technology. It is clear that where a port or harbour operates purely for leisure craft or small shipping vehicles, the need for pilotage might have been overtaken by events and knowledge might have improved. I welcome the proposals, therefore, to enable facilities to relinquish some of their obligations under the Pilotage Act.
Let me turn to the exemption certificates. My hon. Friend the Member for South East Cornwall identified the Pilotage Act 1987 as the umbrella legislation that covers marine pilotage operations. I agree with her assertion that the 1987 Act could benefit from an update in relation to such certificates, because it is some 25 years since it was passed. None the less, it is clearly right to address the concerns that have rightly been expressed on behalf of the pilots association and by the hon. Member for Ellesmere Port and Neston on behalf of his constituent. I hope that I have been able to reassure the hon. Gentleman in respect of section 8 of the Pilotage Act 1987, which clearly states that competent harbour authorities can issue exemption certificates only when they are certain that the applicant’s
“skill, experience and local knowledge are sufficient for him to be capable of piloting the ship”.
I hope that in my other interventions I was able to reassure him on the other issues he raised.
Competent harbour authorities are responsible for the operation of their ports. They know the types of ships that call, they know the geography of their sea beds, they know their tidal patterns and they know their ports. Currently, competent harbour authorities are responsible for the pilotage services provided at their facilities. They can choose the pilots who provide the services at their ports, requiring specific skills and experience of those who ply that trade. Competent harbour authorities can already issue pilotage exemption certificates to masters and first mates who know a port well. Such certificates enable an individual to bring a ship into a specified facility without the need for a pilot, and the requirements for the holder, in terms of knowledge, skills and experience, are the same as for full-time pilots.
I therefore believe that competent harbour authorities are well placed to decide which members of a ship’s crew they issue a pilotage exemption certificate to. Competent harbour authorities are, after all, experienced in this field and know the navigable hazards of their facilities best. Moreover, we should enable competent harbour authorities to recognise the skills and knowledge of those who have driven themselves to achieve the required standards, through the granting of a pilotage exemption certificate. Clauses 1 to 4 further strengthen competent harbour authorities’ administration of the certificate process, enabling the easier withdrawal of certificates and introducing stronger pilotage reporting requirements. The proposals therefore clearly seek to strike a balance between right deregulation and maintaining high standards of maritime safety.
Clauses 5 and 6 deal with some of the issues that the hon. Member for Ellesmere Port and Neston raised, as well as those raised by my hon. Friend the Member for Worthing West. Let me try to give my hon. Friend some reassurance. As he rightly said, the Royal Yachting Association has indeed expressed a number of concerns. Some were similar to those it expressed in 2008. My Department has looked at a number of them, and we will be responding in Committee. None the less, although we have discussed the issue of consultation and guidance from the Department, I think the crux of what my hon. Friend was saying today is this. In the response to the 2008 consultation, the Royal Yachting Association proposed that an independent adjudication procedure and process be provided in the Bill. Where I think he wants reassurance is on the question of why the Bill does not do that, for which there are several reasons. First, the Bill is not only about marine safety, but about simplification and deregulation. There is little evidence that the authorities that already have the power to give general directions do so unreasonably, although to be fair, my hon. Friend acknowledged that point.
Sir Peter Bottomley
Indeed, and my hon. Friend will acknowledge that, with the Department’s approval, some revision orders or powers to harbour authorities include the independent report element, so I think it is a score draw at the moment.
Stephen Hammond
Just as I was standing in front of an open goal!
As I have said, harbour authorities will be required to consult users and stakeholders before making general directions, and it would be sensible of them to hold informal discussions with those bodies before the formal consultations. The Department will provide guidance. Some Members asked whether the process of judicial review was too expensive, but it exists none the less. I have agreed to meet representatives of the RYA with my hon. Friend the Member for South East Cornwall and my officials, and I hope that we shall be able to give them even more reassurance before the Committee stage.
Sir Peter Bottomley
I am grateful to my hon. Friend, and I am sure the House is as well. The RYA representatives may say that they are looking forward to the meeting as well, and are expecting the Minister and my hon. Friend the Member for South East Cornwall to agree to what they want. I hope that all parties will be asking themselves what they are trying to achieve, and what is the best way of making a minor modification to the clause if it is not to be dropped altogether.
If it is felt that the clause should be retained—for the purpose of simplification, as the Minister sensibly said—it might be worth considering provision for an independent report. No one is suggesting that there should be an independent report on every possible harbour revision order, because most are uncontroversial; the need arises only when an order becomes controversial, or when there is a clash of interests.
Stephen Hammond
I have listened carefully to what my hon. Friend has said, and I shall ensure that my officials and I go to the meeting in the spirit that he desires. He is right to say that everyone wants to deal with the clause constructively.
As I said in an earlier intervention, and also a moment ago, some harbour authorities have powers of general direction through private Acts of Parliament or through the harbour revision orders, while others do not. Such general directions are used to control vessels and improve safety. The Bill enables the Secretary of State for Transport to make an order giving a named harbour the power to make general directions in respect of ships. I think that that is a welcome measure, which will have the potential to place all harbour authorities on a similar footing in terms of order-making powers to control their harbours using general directions. As for the harbour closure proposals, it seems sensible to me to allow port and harbour facilities that are no longer economically viable to be closed in order to prevent a continued financial drain on their owners.
Sir Peter Bottomley
Many navigation authorities are on inland waterways, which may not be within the scope of the Bill. Might they constitute inactive responsible authorities, and might they be covered by the clause? I do not expect the Minister to answer my question immediately, but perhaps he would be kind enough to write to my hon. Friend and me at a later stage.
Stephen Hammond
I will indeed.
My hon. Friend the Member for Thurrock made an extraordinarily powerful speech about clause 7. She not only guided us through the history of the Port of Tilbury authority—I shall use that information for a question in my constituency pub quiz later—but drew attention to the Bill’s antecedent of 2008, and welcomed the present Bill.
As my hon. Friend said, knowledge of the powers of the port police and what should be required of them in the 21st century is limited. She gave examples of the anachronistic nature of the law as it applies to them: it certainly does not cover the needs and requirements of the 21st century. She rightly observed that their role often went well beyond their present tightly defined remit, involving traffic control, the ability to work with local police forces in trying to control episodes of disorder, and the additional resource that they provide in other contexts as and when directed by local forces. They should, of course, also feature on the roll of honour celebrating the great performance of public servants and volunteers during the Olympics. She rightly recognised and forcefully made the point that clause 7 will put the ports police on the same footing as other police. It is right that it does so, and I look forward to the clause being widely welcomed in Committee.
The Bill does not limit itself to the matters of shipping and port activity; it also seeks to enable the general lighthouse authorities to trade more freely in the commercial sector. My hon. Friend gave us a pub quiz question, so before I comment on that legislation, may I, in that same spirit, tell her some things of which she may not be aware? The oldest lighthouse in existence is indeed in these islands, at Hook Head, in south-east Ireland—the tower, with additions and modifications, dates back to Norman times; Trinity House has been in existence for 500 years; the Northern Lighthouse Board recently celebrated the bicentenary of its iconic Bell Rock lighthouse; and the Commissioners of Irish Lights provides marine aids to navigation across the whole of Ireland—it is symbolic of what the UK and Ireland can achieve through working together. The enactment of this clause will not only enable the general lighthouse authorities to minimise their operational costs through the generation of additional income, but will help the Commissioners of Irish Lights in its drive to be self-funding in the Republic by 2015-16.
I, too, am aware of the commercial activities that the general lighthouse authorities undertake. They also pool their limited spare capacity to undertake commercial work where they can, a good example of which is the help they give the Met Office in maintaining deepwater buoys. The clause that my hon. Friend has promoted will enable the three general lighthouse authorities to enter into commercial agreements more easily, and trade on their good names.
I take the stricture of the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) about the phraseology of clause 10; he rightly says that it refers to a previous Bill. I take his point, and nothing should be inferred from that phraseology. Clauses 10 and 11 are the other substantive clauses in this Bill, and they represent a sensible approach to tying up administrative loose ends for the lighthouse authorities and removing some of the bureaucracy involved in making new regulations on manning or crewing requirements, which is costly for both private enterprise and the Government.
The Bill has had widespread support. A number of issues have been raised, on which I hope we have been able to reassure hon. Members. If not, I hope that we will be able to do so in Committee. So I commend my hon. Friend the Member for South East Cornwall for introducing this legislation and I commend her Bill. I hope that hon. Members will agree with my assertion that it should be taken forward to Committee, and I look forward to its passage on to the statute book.
Oral Answers to Questions
Stephen Hammond Excerpts(11 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Nick de Bois (Enfield North) (Con)
4. What recent representations he has received on investment for a third railway track between London, Liverpool Street and Brimsdown.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
My hon. Friend refers to a small scheme involving a piece of extra track in the Brimsdown area. The Mayor of London wrote to the Secretary of State this week commending the alternative, but more expensive, scheme, which would also facilitate economic regeneration.
Nick de Bois
The Minister will know that the project enjoys substantial support from Network Rail, north London boroughs and the Mayor’s office. It is crucial to the development of north London, including for potentially up to 33% of new homes, and for more than 20,000 jobs. Will he meet me to discuss support for financial frontloading with resulting payback from local authorities, developers and stakeholders? Any expression of support would be welcome.
Stephen Hammond
I will of course be delighted to meet my hon. Friend and any other colleagues he feels would be appropriate.
Sir Alan Haselhurst (Saffron Walden) (Con)
Accepting that half a loaf is better than no bread, will my hon. Friend nevertheless acknowledge that a much more substantial scheme for improving track capacity on that line is the only way to provide commuters and passengers travelling to or from Stansted airport with the kind of service that by now should be seen as essential—and may I join the meeting?
Stephen Hammond
My right hon. Friend knows that the second high-level output specification package—HLOS 2 —commits Network Rail to providing extra capacity to meet peak demand in that area. Part of that will be done by having new trains between London, Bishop’s Stortford and Cambridge, and another part is sorting out the capacity constraints south of Broxbourne, which will help his constituents. I would of course be delighted if he joined the meeting.
Peter Aldous (Waveney) (Con)
5. What funding he has allocated to improve railway stations.
Mr Lee Scott (Ilford North) (Con)
13. What steps he is taking to address careless driving.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
On 14 June, the Government consulted on proposals to make careless driving a fixed penalty offence, under which drivers who commit less severe examples of the offence, such as driving too close to another vehicle, would be offered educational courses. We hope that that will reduce the instances of careless driving in the not-too-distant future.
Mr Scott
Does my hon. Friend agree that one of the greatest causes of careless driving, even though it is a penalty offence, is people who use mobile phones near schools and more generally, causing accidents? Will that problem be looked into further, because it seems to be spreading?
Stephen Hammond
My hon. Friend is right. The use of a mobile phone will qualify for an increased fixed penalty, if that is what the consultation decides. In more serious cases, that offence can be prosecuted with considerably greater penalties.
Mr Edward Leigh (Gainsborough) (Con)
15. What recent progress he has made on updating rolling stock on the east coast main line.
Tim Loughton (East Worthing and Shoreham) (Con)
16. If he will commission a feasibility study for a Worthing/Lancing bypass due to traffic congestion on the A27.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
The Department has no current plans to undertake a feasibility study into proposals for a Worthing/Lancing bypass. We have been clear that the funding is currently focused on delivering schemes already in the Highways Agency’s investment programme.
Tim Loughton
I welcome my hon. Friend to his new position. With it, he inherits the issue of the lack of a Worthing bypass, which predates his parliamentary career and mine. Worthing is the largest town in Sussex. The major house-building programmes that are planned for my area all feed out on to the A27. The situation will only get worse. Will he come down and sit in the traffic on the A27, as have his predecessors, to see the problem for himself? Will he agree to put back on the agenda a value-for-money study of one of the busiest roads in the south-east of England that needs investment?
Stephen Hammond
My hon. Friend is, as ever, generous in his remarks of welcome. His invitation is equally generous, and I do not think I can refuse it.
Mrs Linda Riordan (Halifax) (Lab/Co-op)
T4. The Caldervale line is in urgent need of new rolling stock as the current units are totally inadequate for the 1 million passengers who use Halifax station every year. Will the Minister inform the House when those passengers will get the new trains that they badly need?
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
The hon. Lady knows that the northern hub package will certainly improve opportunities for the Calder valley line between Leeds and Manchester Victoria. The high-level output specification announcement confirmed the go-ahead for the Castlefield corridor scheme. She knows that the 2012 Budget set aside a package of measures to increase line speeds and look at the rolling stock.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T7. Are there any plans in the Department to begin to look at the commercial condition and strategic future of Britain’s smaller ports, such as Fleetwood and Glasson dock in my constituency?
Stephen Hammond
My hon. Friend knows that the Government’s national policy statement on ports, published in January, designated and underlined the importance of the contribution made by smaller ports. I was delighted to visit the national smaller ports conference in Windermere two weeks ago and to address it. It is, however, for Associated British Ports to promote the commercial opportunities at Fleetwood, rather than the Government.
Jim McGovern (Dundee West) (Lab)
T5. First, I congratulate Dundee youth council on its “It’s no fare” campaign, which seeks to lower bus fares for young people. Will the Minister liaise with his counterpart in Holyrood in Edinburgh to ensure that apprentices and students can get to their place of work or study for the lowest price?
Mr Dominic Raab (Esher and Walton) (Con)
T8. For completeness, I should declare that my wife works for Google, albeit in a capacity unrelated to this question. Google, Audi, Ford and Volvo are among the firms pioneering driverless cars, which could cut road accidents by up to 90% while freeing up time that could unleash massive productivity gains. Several US states are testing the technology. What action is the Department taking to explore the viability of that innovation in this country? [R]
Stephen Hammond
The technology for driverless cars is, as my hon. Friend says, advancing very quickly. As the Secretary of State just said, our key priority is safety and I want to ensure that those systems are safe and reliable before allowing them on to UK roads. There is of course great potential for UK technology to be at the forefront of these developments and departmental officials are liaising with leading UK researchers in the field.
Alison McGovern (Wirral South) (Lab)
T9. In June, the then rail Minister told me that the Government were “making progress on the Thameslink procurement”.—[Official Report, 12 June 2012; Vol. 546, c. 67WH.]In August, The Guardian reported that the contract for new trains would be delayed until the autumn, and it is now the autumn. The delivery of new trains for Thameslink frees up electric rolling stock to move north, but any delay puts that in jeopardy. Will the Minister meet me and Merseytravel to guarantee that we will not end up with an electrified line from Manchester to Liverpool but no electric trains?
Penfold Review
Stephen Hammond Excerpts(11 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
Today I am publishing an interim response to the consultation that closed on 24 August detailing proposals to streamline the process of applying for the stopping up or diversion of a highway, where this is required for the purpose of property development.
This interim response is considering only option 1 of the consultation. The remaining options and consultation responses will be considered and a full response, including proposals for a way forward, will be published by the end of November.
The foundation of all three of the main policy options is a speeding up of the process by allowing stopping up and planning applications to run concurrently, namely option 1.
The large majority of respondents, comprising three main groups, namely developers, local authorities and those affected by stopping up decisions, gave broad support for allowing stopping up and planning applications to be made concurrently, with agreement that it would speed up the process and reduce burdens. We will seek an early legislative opportunity to implement this change.
The Government committed to improving the stopping up application process in the 2011 autumn statement and this will help to deliver the Government’s growth agenda, by removing unnecessary burdens faced by businesses, speeding up the application process and removing unnecessary bureaucracy. The change will play a useful role in encouraging investment and therefore growth in local communities.
This interim response to the consultation document will be available in the Libraries of both Houses and on the Department’s website.
West Coast Main Line
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Rosie Cooper
I think that is a real option. I understand from the grapevine that First does not intend to brand the west coast main line “FirstGroup”, but that there is a great possibility that it will be called Horizon. We might be in that kind of territory; I am not sure.
If there is a failure to reach an agreement before 9 December, it would mean instituting a directly operated railway service on the west coast, matching the current system on the east coast. The Government’s own guidance says that 120 days are required to get that kind of operation in place, and here we are 90 days away from the end of the current west coast franchise. Will the Minister enlighten us on how that will be achieved to ensure the smooth transfer of services to the DOR, if necessary? There is much to consider and address: safety matters; employment and contracting issues; even the simple thing of setting up a website to sell tickets. What would be the associated costs of the DOR in the initial set-up and the monthly costs thereafter? Those costs would be incurred by the taxpayer because of the Government’s failure to handle the situation adequately.
We must consider the staff. Come 9 December, they will have no idea for whom they will be working—FirstGroup, the DOR, or perhaps even Virgin. As part of any transfer of a franchise, there is a responsibility for the incumbent to work with the new operator.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
The hon. Lady has been speculating quite a lot about the steps that the Secretary of State may or may not take as a result of a comment that he made yesterday. Let us be clear: he has a statutory duty under section 30 of the Railways Act 1993 to provide or secure the provision of services. As he made clear, that would be a temporary measure should the franchising arrangements not come into place.
Rosie Cooper
Is the Minister saying that any offer from Virgin to run the service at no cost and the best-value operation will affect his decision? I will ask him some questions about the associated costs should we set up a DOR.
I understand that two mobilisation processes are running side by side. Will the Minister tell us how that is working in practice? What are the associated risks and costs that arise from the lack of clarity? What assurances can he offer staff that their positions will be secure and the situation resolved?
The Minister has partially intimated the answer to the question that I am going to ask. If a DOR is to run the service, will it have the contract for a defined period, or will another mobilisation process be undertaken where an operator is awarded the contract? What will be the cost of that process?
One of the reasons for securing this debate is the manner in which the Department has handled the entire process, from the timing of the announcement to the consistent reluctance to answer hon. Members’ questions. We keep being told that this Government are open and transparent, and I want to believe that. We are told by the Department that it is confident in its decision on the west coast franchise. If I accept that both those statements are true, why have Transport Ministers not had the courage of their convictions and been willing to come to the House to make a statement to allow scrutiny of the process and the decision? There is a claim that one of the bidders had submitted questions to the Department seeking clarification on certain matters, but it has yet to receive a response. We are basically being told by the Department, “Trust us. Trust what we are telling you.”
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
I congratulate the hon. Member for West Lancashire (Rosie Cooper) on securing this debate. It is obviously an important debate and it is, of course, historic; as she will recognise, this is the first debate held on a Monday afternoon in Westminster Hall under these auspices. I have joy in responding to it on behalf of the Government—I am delighted to do so—but I would probably not have quite the same joy if my hon. Friend the Member for South Staffordshire (Gavin Williamson) suggested that I might be here every Monday afternoon from 4.30 pm to 7.30 pm. Mr Davies, it is also a pleasure to serve under your chairmanship.
We have had a fascinating debate. I thank a number of hon. Members, including the hon. Member for Garston and Halewood (Maria Eagle), for their kind comments and for the questions that they have put. I will attempt to answer those questions. Of course, some of them tempt me to go down a line that, if I were to take it, would probably mean I had the shortest ministerial career in history, and I do not propose to do that this afternoon. However, where possible, I will be as helpful as I can. Where I can, and at the right time, I will answer some questions now, and where I can, and at the right time, we will look at perhaps responding more fully in writing.
It has been a very interesting debate. The hon. Member for Halton (Derek Twigg) said that all politics is local, and that has certainly been proved by a number of the contributions today, including his own: I listened very carefully to the comments about Runcorn, the number of passengers and the more frequent service. I remember well the cold morning in Rugby; well done to my hon. Friend the Member for Rugby (Mark Pawsey) for continuing to press the case of Rugby rail users. I will respond to the questions put by the hon. Member for Ynys Môn (Albert Owen) later in my speech. May I also just say to my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw) that, as I understand it, he will be able to use his rail cards on off-peak journeys in future? He also made a number of representations and I am delighted to tell him that I am sure the Minister of State, my right hon. Friend the Member for Chelmsford (Mr Burns), will be listening to his concerns avidly. As usual, my hon. Friends the Members for Shrewsbury and Atcham (Daniel Kawczynski) and for Montgomeryshire (Glyn Davies) made the case on behalf of their constituents powerfully. And my hon. Friend the Member for Morecambe and Lunesdale (David Morris) wanted more than a “Brief Encounter” with the west coast main line at Carnforth; I understand that point entirely. There were a number of other contributions that I wish to pick up as we go through.
As the hon. Member for West Lancashire said, the petition had more than 172,000 signatures. Beyond any question, the franchise process is of genuine public interest, and quite rightly so. After all, whether someone is a fare payer or a taxpayer, they have a stake in our railway networks and an interest in ensuring that they provide real value for money, as well as services that are accessible, reliable and safe. The Government clearly want the railways to succeed in that regard, which is why we are investing more than £18 billion in the railways over the spending review period.
It is important to mention at the start the Government’s objectives for the railways, which were set out in the rail Command Paper this May by my right hon. Friend the Member for Putney (Justine Greening), who was then the Secretary of State. As I am sure a number of hon. Members will remember, it was subject to extensive debate on the Floor of the House. Our aim as a Government is to work closely with the industry to ensure that our railways are financially sustainable and consumer-focused. That approach is essential if we are to ease the burden on the taxpayer and improve value for money for fare payers. We are also building on the work done by my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), which looked specifically at reforming rail franchising.
I note the remarks made by the hon. Member for Garston and Halewood about George Muir. I remember discussing with George his comments on rail franchising. He was in a minority of one at the time, and I think he probably remains in a minority of one, certainly within the Association of Train Operating Companies community.
On rail franchising, the Government set out three key principles in January 2011. First, we believe that franchises should be longer, expanding the opportunity for operators to invest in improvements, as well as enabling them to strengthen their working relationships with Network Rail and other key stakeholders. Secondly, we set out that we should see demanding outcomes for operators to deliver, but give them more flexibility to decide how best to achieve those outcomes. Finally, we said that the specifics of each franchise would be decided on a case-by-case basis.
The procurement of the new inter-city west coast franchise was, as everyone would expect, a thorough and extensive process, which a number of hon. Members have stated. The process was transparent to both Parliament and the public. The first public consultation was held 18 months ago. In May 2011, the then Secretary of State, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), came to the House and gave an updated timetable, including the extension that was partly announced to ensure the success of the Olympics. He provided an updated timetable for the procurement, alongside a draft invitation to tender.
There was then a second public consultation on the train service specification. All bidders were explicitly encouraged to submit bids that contained proposals that reflected consultation with stakeholder groups, including local groups along the route of the franchise, many of which were spoken about today, and Passenger Focus. Following that consultation, the formal ITT was launched and placed on the Department’s website this January. As is now known, following that, four bids for the franchise were received: from Abellio; FirstGroup; a joint venture between SNCF and Keolis; and Virgin Trains, a joint venture between Virgin and Stagecoach.
Daniel Kawczynski
The Minister is talking about timetables. Does he agree that the date that the bids would be announced had been well known for a considerable time?
Derek Twigg
I do not want to pursue the matter for too long, because time is short. If the Government’s projections for GDP, which the bids were based on, is low—the Minister has not said whether one bidder put in a lower projection, despite the Government’s figures—will the Government have to give money back to the successful bidder?
Stephen Hammond
My understanding of the GDP process currently in place is that there would be either payments back to the Government or payments from the Government. I will write to the hon. Gentleman about that.
I make it clear that GDP was only one of the external factors; it was not the only external factor. To ensure that the Government are further protected, a profit share mechanism has also been introduced. The mechanism will enable the taxpayer to benefit from a share in any super profits that the franchise generates while continuing to provide an incentive for the franchisee to outperform.
The hon. Member for West Lancashire asked a number of questions about the Government’s preparations, should the franchise end without a new franchisee being in place. I make it clear that the existing contractor has a contractual obligation to support handover activities. On the 120 days to which she referred, a departmental mobilisation manual is being used by both parties in every franchise to ensure that a franchise handover process is in place, and the activities and time scales required to effect a transfer are set out. The Government are confident that the Department is putting in place the right contingencies in the time scale, should the process not be completed. We expect the legal issues to be resolved so that contingency plans will not be necessary.
Rosie Cooper
We have very little time, and I implore the Minister to answer my questions on the detail of the guarantee and on the contract negotiations. I also implore him to answer the question asked by my hon. Friend the Member for Halton (Derek Twigg). They are important and pertinent questions that go to the heart of protecting taxpayers’ money, and, sadly, the Minister has not answered any of them. I know we have gone round the houses, but the Minister has not answered the questions at the heart of the debate.
Stephen Hammond
I am sure the hon. Lady has listened to my contribution, and I am sure she has taken notes, but I have made it clear that, where I am able to answer questions because of the ongoing judicial process, I have answered them. Equally, I have given a guarantee that after the judicial process, where the Department is able to answer those questions, we will provide a written answer. As I am sure she knows, I cannot make a statement that would prejudice the judicial process.
Mark Pawsey
Given all that we have heard in this effective debate, does the Minister agree with the majority of Government Members that the interests of rail users, taxpayers and railway staff will be served by the contract going ahead?
Stephen Hammond
The Department is confident that we have taken the right decision in the interests of taxpayers and passengers. We expect to sign the contract soon, but we intend to defend the judicial process robustly. Of course, as I said at the outset, it is right that Parliament should scrutinise the franchising process, but there is a right time.
I make it clear that this is not a political decision; it is a commercial decision taken in line with the franchise and procurement processes set out in the reforms of the then Secretary of State, my right hon. Friend the Member for Runnymede and Weybridge. There may be a desire for more extensive parliamentary scrutiny of the process and the bids, but commenting too deeply and changing our decision now could fundamentally undermine any future Government competition, and it would be wholly inappropriate for me to do so.
I guarantee that my ministerial colleagues and I will continue to keep the House and the Transport Committee updated on developments, subject to any constraints of legal or commercial privilege.
Philip Davies (in the Chair)
I call the hon. Member for West Lancashire (Rosie Cooper) to wind up the debate. I am sure she is aware that we are due to finish at 7.30 pm.
Select Committee Inquiry (Aviation Strategy)
Stephen Hammond Excerpts(11 years, 8 months ago)
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Mrs Ellman
I can confirm that the terms of reference for the inquiry, which are now being published, will include the particular issue that the hon. Gentleman has raised.
The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
I hear the hon. Lady’s comments on hub airports. I am sure that her inquiry will wish to reflect on the new Secretary of State’s announcement last week that an independent commission was being set up to look at all these proposals. I am sure that that will be within its terms of reference. The Government will very much welcome the Select Committee’s report, and we look forward to reading its findings. She will of course understand that, in welcoming it, we might not necessarily be able to give an unequivocal welcome to its findings.
Mrs Ellman
I welcome the Minister to his new position. My colleagues on the Transport Committee and I look forward to questioning him on this issue. He is correct to point out that the Prime Minister announced last week that an independent commission would be set up to look at these issues. However, that commission is not expected to produce its final report until 2015, so any decision based on its recommendations will be postponed until the next Parliament, at the earliest.
Petrol Prices (Wyre Forest)
Stephen Hammond Excerpts(11 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
Although it is a surprise to be here this morning, Mr Howarth, it is a pleasure to serve under your chairmanship, on what is my first outing representing the Government, and to respond to the debate secured by my hon. Friend the Member for Wyre Forest (Mark Garnier). I thank him for his kind words. I remember well the day in Wyre Forest, although he forgot our trip on the steam train, in addition to the driving centre. I am pleased, too, to see my hon. Friend the Member for Redditch (Karen Lumley) and the hon. Member for Strangford (Jim Shannon) here today, as it shows the interest in this matter from communities beyond Wyre Forest.
I am surprised to be here this morning, because the debate has been misallocated to the Department for Transport. Many of the comments made by my hon. Friend the Member for Wyre Forest were about competition and fuel price policies, but neither is the Department’s responsibility. Therefore, I apologise if it is not appropriate for me to answer all his points, as the responsibility to do so lies with the Department for Business, Innovation and Skills.
I was pleased, but not surprised, to hear my hon. Friend say that he is a free marketeer and that he does not wish to see the market regulated. As he knows, the petrol retail market is not economically regulated now. As with standards and competition policy, there are legal restrictions, and it is for the Office of Fair Trading to investigate breaches and enforce those. I will come on to the OFT’s investigation in a moment, but clearly, the existing situation is right, and the market operates on that basis. Like my hon. Friend, I do not wish to see economic regulation.
This debate goes to the heart of the fact that, in this time of economic difficulty, high fuel prices are putting a lot of pressure on households and businesses. Businesses are working hard, as are the Government, to ensure that motoring remains affordable for all. We have taken extensive action to ensure that motorists are supported. In the 2011 Budget, the Government cut the fuel duty by 1p a litre, and we have scrapped the previous fuel duty escalator, replacing it with a fair fuel stabiliser. That mechanism, which was effective from Budget day 2012, is designed to ensure that the burden of higher oil prices is better shared between oil companies and motorists through the increased taxation of oil and gas production when oil prices are high. When oil prices are above the trigger price of £45 a barrel, fuel duty will increase by the retail prices index only. When they are below that trigger, it will increase by RPI plus 1%, but that happens only when prices fall below the trigger point for a sustained period. My hon. Friend will remember that, in the autumn statement 2011, the Government deferred the 3p a litre fuel duty increase until August 2012. In June this year, the Chancellor of the Exchequer announced that that increase would be further postponed.
The Government are acutely aware that the high price of oil is a burden for people at this difficult time. As a result of our actions, motorists are being helped, and frankly, if that help had not been in place, whatever the price pertaining—whether petrol is more expensive in Wyre Forest than in Birmingham, or in Redditch than in Cardiff or Strangford—the reality is that the price would be 10p higher than it is now. The existing situation is a direct result of the Government’s action.
Jim Shannon
Even allowing for the Government’s steps, which I very much appreciate, in 2008, the price of a barrel of oil was $147, and the price at the pump was £1.04 a litre. In 2012, the price is about $100 per barrel and the price is £1.39 a litre. I am not a mathematician, but even taking into account those extra charges, that does not add up. I know that the responsibility does not lie with the Minister, but it illustrates to many of people inside and outside the House that oil companies are making exorbitant profits, and there is a need for the regulator to take control.
Stephen Hammond
The hon. Gentleman has put an interesting point about mathematics on the record. He tempts me to pre-empt the OFT investigation, which I would be ill-advised to do. I advise him and other hon. Members present to see what that investigation says. None the less, I hope that he takes the point that the Government are taking action because we recognise the burden of cost. In a moment, I will say a little about the Government’s concerns in relation to market transparency, because that is the line that he is going down, and I understand that.
The road fuel retail market in the UK has always been an open market, not an economically regulated market. The Government consider that to be very much in the wider interests of consumers. Regulation is undertaken by independent competition authorities. However, my predecessor made the point clearly that the Government are concerned about the lack of transparency in the market. As has been expressed not only in this debate but more widely, many people are concerned about fuel prices. They are concerned that the recent reductions in crude oil prices are not being seen at the pumps either at all or as quickly as motorists would like.
The Government have made their position very clear. The previous Secretary of State for Transport, my right hon. Friend the Member for Putney (Justine Greening), spoke several times about motoring costs, as did the Secretary of State for Business, Innovation and Skills and the Secretary of State for Energy and Climate Change. We have made the point that it is in our mutual interest for motorists and businesses to be confident that they are being treated fairly. That is important for the long-term benefit, and that point has been made several times.
When wholesale costs are coming down, those reductions should be passed on transparently and without unnecessary delay. Certainly, the aim of the fair fuel stabiliser is to ensure that action as well. Many members of the Government—the previous Secretary of State for Transport and other Secretaries of State—have made the point that motorists have the right to expect that when there are changes in the crude oil price—they can see those changes on the evening news—they will be reflected at the pumps. There is a duty on the fuel retailers to reflect that. The Department for Transport is on the record as saying that we want not only to see that happening, but to see it happening more obviously, so that there is greater transparency.
The previous Secretary of State put pressure on the fuel retailers to ensure that there was some transparency in their pricing policies. I was delighted to hear from my hon. Friend the Member for Wyre Forest that at least one of the major retailers of petrol was prepared to engage with him; it is to that retailer’s credit that it did so. Of course, being a financier of some repute in his previous life before first entering the House, he will recognise that those are quite normal pricing strategies. Whether his constituents see them as equitable or fair is another question. He will recognise that what that retailer said to him was not that different from what can be found in almost any economics manual.
As I said, the Government are clear that there needs to be transparency in this market and that we need to see that transparency being enacted. We also need to be clear that the industry is giving confidence to consumers. That is why both the Department for Transport and the Department of Energy and Climate Change wrote to several industry organisations, challenging them to ensure that there is transparency and encouraging them to work with the Government to take that forward.
The continuing and increasing public concern about the inability of some fuel retailers directly to reflect the reductions in crude oil prices in pump prices is the reason why on 5 September the OFT, which is, as my hon. Friend knows, the independent authority with responsibility for reviewing markets and enforcing the legal standards that relate to competition in this market as well as other markets, issued a call for evidence to help it to identify whether there are competition issues and a lack of transparency.
My hon. Friend mentioned that he thought that there might be anecdotal evidence of collusion, price undercutting and an attempt to drive out local independent retailers. He would therefore want to recognise—I think that he did so in his speech—that it is right and proper that the OFT gets on with its job and identifies whether there are competition issues overall in the sector or in parts of it.
The Government have made it clear that we fully support the call for information on the road fuel retail market. We clearly recognise the importance of fair pricing to cost-conscious motorists. It is clear that the OFT has been given a brief to explore what are a number of claims about how the road fuels sector is operating. I congratulate my hon. Friend, because almost everything that he spoke about in his speech is in the terms of reference for the OFT’s work. That is why I made the points about collusion, transparency, price fixing and driving out local independents. All those points are explicitly set out in the OFT’s terms of reference.
The Government have asked the OFT to call for evidence, and it is getting on with that. It has said that it will publish its key findings in January, alongside recommendations for action if it believes that to be necessary. It will obviously be appropriate at that time for the Government to make some response. It would clearly be inappropriate for the Government to pre-empt the outcome of that consideration and to speculate on what the next steps might be. Therefore, if my hon. Friend will indulge me and perhaps speak to the relevant Department in January about the outcome of the OFT’s work, I hope that he will get satisfaction. It is vital to the Government that we increase consumer confidence in this area. That is why the Government have asked the OFT to investigate. It is why Secretaries of State have been putting on pressure to ensure that the wholesalers ensure that there is retail price transparency.
I again congratulate my hon. Friend on securing this important debate. I have no doubt that the message about his standing up yet again for his constituents in Wyre Forest will ring through Wyre Forest tonight via the local press, and I congratulate him on that.
Rail Investment
Stephen Hammond Excerpts(11 years, 10 months ago)
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Justine Greening
I have to say that I did not know that snails were that fast, but I believe we need to try to get off this hook of above-inflation rail fare rises every year, which is one reason why we are looking at the efficiency savings programme that Roy McNulty first outlined. Today’s investment in electrification will be a key part of that as well.
Stephen Hammond (Wimbledon) (Con)
In my right hon. Friend’s time as Secretary of State, a new Victorian era of rail investment is not only being promised but delivered. Does she agree that removing some of the bottlenecks is key to capacity? Will she use some of the £700 million that is available so that users of the Wimbledon loop will gain the full benefits of Thameslink?
Justine Greening
I am sure that we will look closely at the case my hon. Friend has made. I know he has worked very hard, alongside other local MPs, to see local railway services improved. Wimbledon itself is a key railway hub for his local area. It plays a really important role, and I am keen to see what we can do to improve it.