Contribution
Noble Lords might like to note that I was driving a Leyland bus last Saturday on Route 19. The vehicle is older than I am. It makes a lot of noise but it does not go very fast.
I thank in particular the noble Baroness, Lady Pidgeon, for her remarks on this subject and for noting the work of the late Baroness Randerson on this. The noble Lord, Lord Moylan, asked directly about supporting UK manufacturing. My colleague in the other place, Minister Lightwood, recently chaired the inaugural meeting of the bus manufacturing panel on zero-emission buses. The Government are focused on delivering on their promise to bring jobs and investment into Britain’s industrial heartlands by boosting bus manufacturing through investment in zero-emission buses, while also driving up passenger comfort and service reliability. The scale of this technological ambition, combined with the highly skilled manufacturers across the UK, will ensure that the economic benefits of net zero are felt by workers across the country, including those building and using buses.
It is estimated that over 60% of zero-emission bus regional area-supported buses—the acronym is ZEBRA, but I am blowed if I am going to use it—will be procured from UK-based bus manufacturers, supporting economic growth and jobs across the zero-carbon transport industry. We want to see UK-based bus manufacturers build on this foundation and stimulate innovation and skills development to ensure that UK- based manufacturers are able to compete with high-quality, affordable products.
The UK’s continuing membership of the government procurement agreement prevents the department requiring that grant funding should be used to procure British-built zero-emission buses. The UK Government have no role in the procurement of buses, because that is the responsibility of the bus operators and/or local transport authorities and local authority bus companies.
The department is not able to require bidders to design their procurement processes in a way that would explicitly favour UK bus manufacturers. We are, however, exploring whether there are any relevant factors that we can build into this requirement, which may help to encourage competitive bids from UK firms without compromising wider commercial outcomes and delivery.
The supply chain for zero-emission buses is global, with UK bus manufacturing sourcing key components, such as vehicle batteries, from foreign-based companies. Those companies are therefore expected to continue to play an important role in the supply of zero-emission buses for the UK market, both through supplying key components and on occasion exporting complete vehicles directly to the UK market.
We have seen no evidence that foreign bus manufacturers are undercutting UK bus manufacturers. Recent evidence suggests the contrary—that UK bus manufacturers are not being undercut, with prices being broadly comparable. When zero-emission bus regional area orders have gone to international bus manufacturers, local transport authorities and bus operators have indicated that those decisions have been based on build quality and timeliness, rather than price. International manufacturers win some orders, just as UK manufacturers are winning orders abroad, from Germany to Hong Kong. A healthy and competitive global market is a positive thing, driving up performance and quality and driving down cost.
I hope that that puts the mind of the noble Lord, Lord Moylan, at rest about the Government’s intentions in respect of British zero-emission bus manufacturing. I shall not speak further, other than to welcome the remarks of the noble Lord, Lord Goodman of Wycombe, on Amendment 51. I hope that your Lordships will welcome my other amendments for zero-emission buses and accept the need for all my amendments.