PARLIAMENTARY DEBATE
Emissions and Vehicle Type Approval - 20 April 2017 (Commons/Westminster Hall)

I beg to move,

That this House has considered the Third Report of the Transport Committee, Volkswagen emissions scandal and vehicle type approval, HC 69, and the Government Response, HC 699.

It is a pleasure to serve under your chairmanship, Mr McCabe.

In September 2015, the American non-governmental organisation the International Council on Clean Transportation discovered that Volkswagen had been cheating on emissions tests around the world. The purpose of such tests is to ensure that vehicles comply with standards on nitrogen oxides—a poisonous emission. Volkswagen eventually admitted that its cheating started in 2006. Defeat device software was installed so that emissions were reduced only when the vehicle was being tested in the laboratory and did not reflect what happened on the road. The consequence was 11 million VW vehicles worldwide—1.2 million of them in the UK —pumping out poisonous gases at many times the acceptable level. This is an issue of consumer confidence and public health. Emissions standards exist to protect our health; each year, in the UK alone, nitrogen oxides cause 23,000 premature deaths.

The Select Committee on Transport was determined to find out what had happened. In October 2015 we first heard evidence from Paul Willis, the managing director of Volkswagen UK. It quickly became apparent that this was not just a case of one rogue company—it exposed deficiencies in the vehicle testing process. We launched our inquiry into VW emissions and vehicle type approval in November 2015. Our report published in July 2016 made findings in three major areas.

First, Volkswagen showed a cynical disregard in its treatment of European customers. We were astonished to hear Volkswagen apologise for what it had done, and subsequently deny that it had done anything wrong. Its continuing refusal to provide UK customers with any compensation remains deeply unfair. Secondly, the vehicle type approval process was not fit for purpose; riddled with conflicts of interest, its inadequacy meant that VW was able to cheat the emissions standards for years without detection. Thirdly, much needed to be done to improve the emissions tests overall. Like the type approval process, emissions standards have undergone review at EU level, but before the emissions scandal they had been allowed to become hopelessly out of sync with developments in vehicle technology.

We have continued to pursue this issue as regards Volkswagen’s culpability for its deception and in pressing for fair treatment of its UK customers. Doing so raises the question of the adequacy, or inadequacy, of the action of UK authorities.

I am listening carefully to the hon. Lady’s impressive speech. Does she agree that the Government are out of pocket because a higher level of vehicle excise duty should have been paid? The vehicles were not as environmentally friendly as they were made out to be, so, in addition to the claims of individual consumers who were misled, the Government are short of tax revenue, which we desperately need for public services. Does she agree?

I certainly do. Indeed, I will refer to compensation later, because it relates to the taxpayer, and the Government, as well as to individuals who had purchased vehicles. The hon. Gentleman makes an important point.

We have continued to pursue this issue both as regards VW’s culpability for deception and in order to seek fair treatment of its customers and, indeed, the taxpayer. Let us look at what happened. Volkswagen’s response to the uncovering of the scandal in the UK has been pitiful. I regret that the Department for Transport has so far been unable to convert its strong words condemning VW’s behaviour into action that delivers concrete benefits for customers and the public, including fair compensation for both.

When Mr Willis first gave evidence to us, and when he came in January 2016, he told us that Volkswagen was committed to uncovering what had happened and making sure it never happened again, and the company apologised for its action. Indeed, if I recall, I do not think that Mr Willis and the company stopped apologising for what it had done for much of the session. We were told that it had hired the law firm Jones Day to investigate and produce a report that would be made public. We were told that the investigation involved 450 people looking through the equivalent of 50 million books. Great importance was attached to that; indeed, Mr Willis told us that he declined to answer a number of our questions because the issues would be dealt with in the Jones Day report that was to be made public and that we would clearly then have access to.

When we questioned the same Mr Willis in Committee two months ago we heard an entirely different story. He assured us that the Jones Day findings were contained in the statement of facts published by the United States Department of Justice as part of its deal with Volkswagen —a document that is 29 pages long—and told us that no other Jones Day findings would be published at all. He implied that a report might not even exist; it might just be this statement of facts—29 pages and not to be published. It stretches credulity that the findings of such an extensive investigation can be summarised in 29 pages. The statement of facts produced for the US Justice Department focuses on events in the USA, and Volkswagen itself repeatedly stated that the events in Europe are entirely different.

We pursued Mr Willis further to seek clarification of a number of points. One was that he appeared to speak in direct contradiction to the evidence given to us by the Minister, who followed him in the evidence session. We received a written response from Mr Willis. That response was not to my or the Committee’s satisfaction; it did not clarify the issue. I have therefore written, on the Committee’s behalf, to Hans Dieter Pötsch, chairman of VW’s supervisory board, seeking further information and, I hope, clarification of where the truth lies.

After so much effort, Volkswagen’s refusal to release in full the findings of the report that we were told so clearly would be published is deeply suspicious. I wonder what the company has to hide and why it is doing this. Mr Willis had told us at an earlier point that it was “implausible” that a senior Volkswagen employee would have known about the defeat devices; indeed, we were told that the scandal originated with a few rogue engineers. Clearly, that view is not shared by the American and German authorities, which are actively investigating several senior VW employees. Oliver Schmidt, who gave evidence to our Committee last year, is among those now being investigated in the States—a situation that hardly inspires confidence.

If VW’s position is that the scandal was caused by a few rogue engineers, it must release the full Jones Day findings to prove that contention. If VW refuses to do so, I ask the Department to act. I recognise that the Department has asked for the Jones Day report, but as far as I am aware, it has not been produced. Will the Minister update us on his efforts to secure the full Jones Day findings and place them in the public domain? Also, what discussions has he held with his American counterparts about the possibility of sharing the information already given to the US judicial system?

Compensation for UK customers is a critical issue. Mr Willis was full of apologies on the company’s behalf when he first gave evidence in 2015, but since then, his tune has changed dramatically. In fact, it is now VW’s position, as Mr Willis stated to us in Committee a short time ago, that the company has done nothing wrong in the UK or the rest of Europe and that therefore no compensation is due.

That is treating the UK with contempt. I remind hon. Members of the position on compensation in other countries. In the US, Volkswagen has agreed to provide each owner with between $5,000 and $10,000, while a deal agreed in Canada will give owners between $4,000 and $6,000 US. Here, they will get nothing at all. Why has no action been taken by the Department for Transport, the Serious Fraud Office or the Competition and Markets Authority? I have asked that question in the past and been told that the issues were being considered, but as far as I am aware, no action has been taken; I hope that the Minister can give me the latest information.

A few moments ago, the hon. Member for South West Bedfordshire (Andrew Selous) raised the issue of compensation. Can the Minister update us on whether he has secured the additional £1 million that he demanded from Volkswagen? That is one of the issues over which we are in dispute with Mr Willis: the Minister told us that the company had not given the Department what it asked for, but Mr Willis appeared to tell us that it had. We are still trying to clarify that issue through correspondence, so if the Minister could help us on it when he replies, it would assist us very much.

I would also be grateful for an update on European Commission proceedings. The officials who appeared before the Committee in February spoke of an ongoing dialogue. What has that delivered, and what action will be taken? I am aware that the Commission proposes to take action against the UK Government for failing to act in relation to its responsibilities to enforce appropriate standards; it would be helpful to know the current position.

I will briefly address the technical measures implemented by Volkswagen in the wake of the emissions scandal. Again, Mr Willis recently told the Transport Committee that the fix had no impact on real-world emissions, and we were told that nothing was wrong. He was asked why, if nothing was wrong, the vehicles were being fixed, and we were told that the sole reason was to ease customers’ minds about how vehicles had got through the testing programme—the company is spending money on so-called fixing, but the company did nothing wrong and is doing it only to ease customers’ minds. I find that completely implausible. That cannot be the situation. We are also told that the technical measure had no impact on vehicles’ performance. I said to Mr Willis that if that was correct, surely he would have provided a warranty to cover the technical measure. I know that the Department has been seeking that warranty, but as far as I am aware, the company has done nothing.

I receive numerous communications almost daily from members of the public who report that their vehicle has been impaired since they had the fix applied. A closed Facebook group bringing together people who have been affected now has 1,400 members. Many have told me about the stress of suddenly finding that their vehicle was not working after the measure was applied. They relayed instances of the vehicle going into limp mode, or not going above a certain speed; in one case, it happened on a motorway, and other cars had to swerve to avoid a collision. In many instances, when customers raised concerns, they were told that it was a coincidence and asked to pay hundreds or even thousands of pounds for the fault created by the so-called fix to be investigated and put right.

Mr Willis told the Committee that he would give us an assurance on that matter and said that it could not be the case, but that the company would investigate free of charge all reasonable concerns raised by VW owners after the fix was applied. I suspect that Mr Willis’s definition of “reasonable” might differ from his customers’. Will the Department monitor what happens in that regard?

The scandal was not only a case of a rogue company; it could never have happened if the regulatory structures for vehicle type approval had been adequate. We must remember that the cheating was uncovered not by a regulator, but by a US non-governmental organisation, the International Council on Clean Transportation. European Community whole vehicle type approval is the process ensuring that vehicles meet the relevant environmental, safety and security standards. An approval authority—in the UK, the Vehicle Certification Agency—certifies that the vehicles meet the relevant standards. Approval authorities work on the basis of information collected by technical services organisations that witness the test and collate the information.

As well as being an approval authority, the VCA provides technical services to manufacturers. The Committee concluded that that constitutes marking one’s own homework; it is a clear conflict of interests. In addition, the VCA competes with other European approval and technical services agencies across Europe for business from car manufacturers. The incentive to be unduly lenient on car manufacturers is clear. That conflict of interest works against consumers and ultimately damages public health.

In their response to our report, the Minister told us of various measures being considered to manage potential conflicts of interest, including more independent assurance and audit and increased training for emissions engineers. We were also told that an end-to-end review of the technical service process was taking place. Can the Minister update us on the outcome of that review? What plans have been put in place for type approval as part of the Brexit negotiations? We currently use European standards; what will happen after Brexit? Is that part of the negotiations? Is it expected that the UK and EU countries will continue to accept vehicles type approved by one another? How will it work?

Our report emphasised the importance of in-service surveillance, or the process of spot-checking vehicles on the road to ensure that their pollution performance is still within an acceptable range. The Minister told us that a new, robust system of in-service surveillance was being implemented, which is to be welcomed, but in the first instance, that surveillance will focus on new vehicles entering the market. Can the Minister update us on the performance of the new market surveillance unit? What progress has been made in ensuring that that unit operates beyond new vehicles?

A gap exists between real-world emissions and those emitted in the laboratory; it is the result of developments in technology and flexibilities allowed in the test procedure. Can the Minister update us on the progress of setting the final requirements for Euro standards? Is he satisfied that they are sufficiently robust? The Department told us that it had written to the European Commission to press for further improvements. What has the response been?

A year and a half after the emissions scandal came to light, Volkswagen has still not been held to account. Instead of providing the information, compensation and warranties that have reasonably been requested of it, Volkswagen maintains that it has done nothing wrong. Surely it is time that the Minister committed to using the powers available to him.

The scandal goes much further than Volkswagen. In the course of our inquiry, it became abundantly clear that the type approval system and emissions standards were not fit for purpose. Their support for manufacturers at the expense of ordinary people, consumers and public health was well known, but nothing was done about it before the emissions scandal erupted. I ask the Minister today for clear information on how the situation has improved.

The Volkswagen emissions scandal was shocking, but it has shone a light on deficiencies in the testing process. UK consumers are being treated with contempt. What action is the Minister taking to correct this outrageous situation?

I shall speak only briefly, because the speech by the hon. Member for Liverpool, Riverside (Mrs Ellman), the Chair of the Transport Committee, was all-encompassing and forensic in its detailed examination of the issue.

The Minister, his Parliamentary Private Secretary—my hon. Friend the Member for Finchley and Golders Green (Mike Freer)—and I all believe in free enterprise and salute what business does to pay for public services. However, that is not a blank cheque from the Conservative Benches. As the Prime Minister has said eloquently on a number of occasions, we believe in holding business to account and in holding it to high standards. Given what the Chair of the Transport Committee said, there are genuine questions to be asked. Why are Canadian and American consumers already receiving compensation, while UK consumers are not? Indeed, in my view the Government are out of pocket because of the tax revenue they should have received.

We all know that there is a huge need for infrastructure investment for the ultra-low emission vehicles of the future. I know that the Minister is passionate about the subject. He shares my desire to roll out new-energy vehicles—as they are called in China—across the country. That roll-out will require considerable public investment. Volkswagen is Europe’s largest car manufacturer; it is not a poor company. I would like to see UK consumers being put back in pocket, the Government receiving the tax revenue they have lost, and a contribution made towards the infrastructure that this country will need in order to roll out the clean-energy vehicles of the future.

I have great confidence in my right hon. Friend the Minister. He is indeed a friend; he is a fine Minister and cares deeply about his briefs. He will have been as concerned as I was to hear the report that the hon. Member for Liverpool, Riverside put before the House in such an exemplary manner today.

It is a pleasure to appear under your chairmanship, Mr McCabe. I congratulate the hon. Member for Liverpool, Riverside (Mrs Ellman) and her Committee on its excellent report. Her speech set out lucidly the problems that have been uncovered.

Clearly the actions of the company in this matter are utterly reprehensible and have seriously undermined confidence in a company that was previously a byword for reliability. In particular, the actions of Mr Willis before the Committee will have done nothing for Volkswagen’s future reputation in the UK and probably further afield. Nobody would argue with the Government’s response to the report when it states:

“The Government strongly agrees with the Committee that the actions of Volkswagen were completely unacceptable and is also concerned by Volkswagen’s more recent statements that underplay the severity of its cheating.”

The hon. Member for South West Bedfordshire (Andrew Selous) alluded to the fact that in Canada and the United States the company has come up with money and compensated consumers. He also mentioned the loss of tax revenue and perhaps vehicle excise duty, but I suggest that the impact on the public purse has been much wider. Because emissions have been much higher than we were led to believe, there will have been an impact on public health. Addressing that impact will have been funded by the taxpayer throughout the United Kingdom. Volkswagen’s actions have put people’s health in danger and caused greater Government expenditure, and the Government should take that into account in dealing with the matter. The same situation will apply in many countries throughout Europe that have a public health service.

The emissions scandal also feeds into the current debate about the future of diesel vehicles and their impact on air quality in our cities. Clearly, in order to have a rational debate on the matter, we need confidence in the data about the level, as well as the impact, of emissions. The actions of the company have destroyed much of the confidence about the levels of emissions that have actually been generated. Strangely enough, I received an email this week on that very subject from a constituent, Neil, who has a diesel vehicle:

“For the past two decades I have driven a diesel car, on the advice that this type of fuel was the best environmental choice. I am now in the position of being considered the demon of the roads owing to the pollution—particulates and nitrogen oxide—released by these cars. This is due to the car companies’ fraudulent use of pollution cheating systems… I would like to be sure that I will not be the one who ends up footing the bill to change my polluting diesel. Are there any UK schemes being planned to help people like me, who are victims of this scam?”

Perhaps the Minister might care to elucidate. That email illustrates that ordinary people who have tried to do the right thing and get vehicles that are less polluting have ended up with vehicles that appear to be even greater polluters than the petrol cars they drove before. That undermines public confidence and our efforts to reduce our emissions and clean up our air. Volkswagen cannot escape responsibility for what it has done.

I note that the Government response to the report states:

“We found no evidence that other manufacturers we tested were using a cycle recognition device like Volkswagen.”

That may be so, but it has become apparent since the Volkswagen scandal broke that many manufacturers have been using devices to similarly reduce or hide the true emissions of their vehicles. For example, The Guardian reported last year on concerns about Mercedes-Benz, Honda, Mazda and Mitsubishi, and the American magazine Road and Track reported on concerns about some of the same companies, as well as Opel, several American manufacturers, Fiat, PSA and Renault. It also reported that a class action had been instigated in the US against Mercedes-Benz. The scandal may go much wider than just Volkswagen. We have no idea what impact it has had on consumers in the UK or on air quality in many of our major cities.

All of that shows that we face a very large-scale and widespread problem with the data claimed by motor manufacturers, as the hon. Member for Liverpool, Riverside alluded to. Owners of diesel vehicles have been put in an impossible position. I would be interested to hear the Minister’s comments on whether the Department has looked at the wider issue and at manufacturers other than Volkswagen to ascertain the true extent of the problem. It seems to me that tackling Volkswagen is a start, but unless we get to the heart of the problem, find out how large it is and tackle it with all manufacturers, we will face an ongoing and serious problem for consumers and public health.

The Committee’s report and the hon. Lady’s speech have rightly drawn attention to the difference in the approach taken by Volkswagen in the US and Europe. Again, few would dispute recommendation 3:

“Volkswagen’s treatment of customers in Europe compared to its treatment of customers in the US is deeply unfair.”

The Competition and Markets Authority was alluded to, but the Government response makes the point that the CMA has no powers to intervene, as the vehicles concerned are mostly vehicles sold prior to the CMA getting appropriate powers. Given that all this apparently goes back to 2006, that is a heck of a number of vehicles on our roads that are affected.

The Government now talk of joint action with prosecutors across Europe. Can the Minister say whether that will continue? Obviously we are in the process of negotiating withdrawal from the European Union. Will that have an impact on any such action? I suspect that this is not going to be sorted in the next few months, so it may well have an impact in the future. Comment has also been made on the possibility of action under the Sale of Goods Act 1979.

Is there a reason why the United Kingdom and European legal systems should necessarily be so much slower than the American and Canadian ones? Drivers in those two countries have already received compensation. If that can happen in north America—somewhere that takes jurisprudence extremely seriously—surely it can happen in the United Kingdom and Europe in the same type of timescale?

I see absolutely no reason why it cannot. Obviously the American consumer organisations are slightly different from our own and seem to be better at getting things into court and sorted out much more quickly than is the case under our system, but that should not be the case. Volkswagen, which clearly reacted quickly to the problem it had in the United States—presumably because of the damage to its reputation and market share in the US—should have done the same in Europe. That prompts the question as to why Volkswagen thought that it did not need to do that in Europe.

It is imperative that the UK, along with other European jurisdictions, takes action to show that they are not immune from what is happening in the United States. We must put consumer rights at the heart of this, as well as taxpayers’ rights, because the taxpayer faces a huge and ongoing bill, probably for many decades, due to what has happened over the last few years.

I was commenting earlier about the possibility of action under the Sale of Goods Act 1979. I was a solicitor before I came to this place—some years ago now, admittedly—and that is not an easy route for individuals to take. The Government note they are not privy to the terms of the contracts between individual owners and the company, but many individual owners will have contracts with the third parties who sold them the cars and will not generally have contracts directly with the company, although some may, depending on the type of contract.

However, the most problematic area is simply the impracticability of any individual car owner taking on a massive multinational such as Volkswagen in the civil courts. Such actions are not cheap at the best of times and when such a huge technical issue is involved, the costs are likely to escalate quickly. Also, whatever the sum that an individual may be claiming, there is an incentive for the multinational company to fight the case, because it is not dealing with just one such case but potentially thousands of such cases. There would be a real David and Goliath battle, and it is difficult to see how any individual would have any chance of success.

The hon. Gentleman is making some very pertinent and interesting points. The change in Volkswagen’s attitude towards the Committee, from the first time they appeared before us to the last time, two months ago, was dramatic. Initially, they were full of apologies, but on the last occasion they said they had done nothing wrong. I can only feel that that is because they believe that they have got away with this and will not be challenged. Does he agree that that makes it even more important that the Department for Transport considers its powers to challenge, so that individuals are not left isolated and vulnerable?

I was just about to make that very point. It is not within the power of the individual to take on these companies. It seemed clear to me from Mr Willis’s attitude when he last appeared before the Committee that Volkswagen would try to defend its actions, if it says it has done nothing wrong, which would leave the individual consumer in an impossible position. It will only be by Governments—not only in the UK but in other European nations—acting together and going after the company, and making certain that there is a compensation scheme akin to the one that has existed in the United States and Canada, to compensate ordinary victims of this scandal in the United Kingdom.

This is not an isolated case; there are other scandals in the motor industry. For example, there is the Vauxhall Zafira, which kept bursting into flames. The motor industry is an important industry in many parts of the United Kingdom and it may well become even more important as things progress. However, it must get its house in order, because if these scandals continue, there will be a great loss of confidence in many of these vehicles among ordinary consumers. I would ask the Minister to consider that and also to say whether he has discussed with other European jurisdictions the possibility of a joint and multilateral approach to getting a consumer compensation scheme to cover the European Union, or at least several countries together.

It is a pleasure to serve under your chairmanship once again, Mr McCabe.

I start by congratulating my hon. Friend the Member for Liverpool, Riverside (Mrs Ellman), who has pursued this issue with characteristic vigour in her role as the Chair of the Transport Committee. It is absolutely right that we are having this debate on the back of the Committee’s report, because since the case broke back in September 2015 we have had Committee hearings, and the issue has been raised frequently at Transport questions; I am sure the Minister remembers those exchanges. Today, however, is a welcome opportunity to hear from the Government what they intend to do about it.

This issue is extremely important and we must ensure that our efforts to hold Volkswagen to account are not side-tracked, either by Brexit, which seems to be all-consuming for some parts of Government, or by the imminent general election. It is also important because the relationship between emissions and air quality is a fundamental issue—we discussed air quality in this Chamber only yesterday. It is increasingly clear to us that despite the Minister’s warm assurances that air quality overall is improving, parts of the country are suffering an air quality crisis, which in some places is literally choking some of our towns and cities. I have no doubt that Members from all parties are looking forward to the Government publishing their third attempt at an air quality strategy soon, particularly because a High Court judge described their last two efforts as “woefully inadequate.”

There are two distinct issues that we are discussing today that feed into the air quality crisis: first, the accuracy of emissions testing, and secondly, as we have heard, there is VW, which, despite the relative leniency of the EU testing regime, actively distorted its tests. I was greatly taken by the comments of the hon. Member for South West Bedfordshire (Andrew Selous) about how recompense could perhaps be made by one of these major companies so as to improve our air quality in the future.

It has been known for a while now that emissions tests are inaccurate. Given the challenges of technology and the importance of getting the variables as similar as possible for all tests, it should have been clear earlier that there was a yawning gap between the laboratory tests and the emissions produced in real driving conditions. Despite what the Government say, it is hard not to conclude that there has been significant dragging of heels in facing up to this matter.

I have been told that, prior to the VW case in July 2015, the Department for Environment, Food and Rural Affairs was briefing Members of the European Parliament to oppose measures on real driving emissions testing, and it is still not clear to us whether the DFT was consulted on that issue. Perhaps we can be told whether it was consulted or not. It was only when the VW scandal became a concern for the wider public and attracted publicity that the Government were compelled to act and support the changes to the EU testing regime last year.

A highly critical European Parliament commission of inquiry concluded last month that EU member states, including the UK, strongly opposed the more ambitious proposal by the Commission for conformity factors for limits on oxides of nitrogen. The commission of inquiry also said that it remained “debatable” whether conformity factors in the new real driving emissions procedures were justifiable from a technical perspective, given that several independent tests on Euro 6 cars are already achievable under existing standards. The commission also recognised that there are standards in the world that are much stricter than those in Europe. We know that EU car manufacturers already place diesel cars on the US market that must comply with the NOx limits in the US, which are much lower than in the EU, so it can be done.

It is crucial the Government are not complacent about any of this. For the sake of public health, we cannot afford to have open-ended emissions breaches. As well as advocating for research into measuring capabilities, there must be a constant review of the regime to ensure that manufacturers do not find ways of avoiding limits through other means, and that is putting it kindly.

In the longer term, the Government must be a leader outside the EU and press for a whole new approach that focuses entirely on real-life driving scenarios. Will the Minister set out his plans for reviewing the mechanisms? Will he commit to bringing down the conformity factor as soon as possible? Will he set out his plans on type approval outside of the EU and tell us what they are? The Government said in response to the Transport Committee report that they are

“considering new research to develop ideas for real world testing of CO2”

and other pollutants. Where has that research got to? Will he make clear his party’s commitments on air quality domestically? I have to say, I felt he did not set out the full detail in this Chamber yesterday. Will the strategy include investment in greener buses and public transport? Will it include a review of plug-in grants and excise duty rates for electric vehicles? Will it include measures to reduce other barriers to electric vehicle uptake? Will it include extending clean air zones to more local authorities?

Of course, the public outrage is around the VW scandal. What VW did undermined not only trust in VW, but public trust in the whole automotive industry. A year and a half on since the case, we have seen a settlement of almost $15 billion for mis-selling nearly 500,000 vehicles to US customers, but in the UK there have been neither financial nor legal penalties to VW for the deception of 1.2 million vehicle owners. The Transport Committee has rightly been damning of the Department for Transport’s ambivalence towards the legality of VW’s actions, despite the strong words in the media recognising that the Department took five months before seeking preliminary legal advice on a prosecution. I strongly endorse the demands made by my hon. Friend the Member for Liverpool, Riverside, particularly on disclosing the data that seem to have been available in America, but not here. It is very important that we know.

The Government still have questions to answer, particularly on what they knew before 2015, what they have done besides the type-approval changes and what their plans are to actually hold VW’s feet to the fire, rather than just promising to do so. Before the scandal broke in the US, the European Commission’s Joint Research Centre raised concerns over the possible use of defeat devices back in 2013. Why was such an allegation not followed up? The Government have since established a market surveillance unit within the Driver and Vehicle Standards Agency, but the European Parliament report suggests that failure to organise a surveillance system beforehand constitutes a contravention of EU law and maladministration. Does the Minister therefore expect legal proceedings from the Commission to continue? How is the Department for Transport progressing with introducing requirements for manufacturers to disclose their emissions control strategies? Will that be affected by any interventions by the European Union?

Despite talk of steely fists and velvet gloves from the Minister in previous debates and monthly meetings with the Department, it seems that VW has not budged an inch in recompensing drivers in our country. Any technical changes that VW is voluntarily carrying out are supposedly to remove any doubt from customers’ minds and are promised not to affect vehicle performance, fuel consumption or driveability, but that is not the experience of some drivers, as we have heard. As my hon. Friend said, if nothing is wrong, why is VW doing that? What is the cost of letting VW sort out these problems in its own time? Can the Minister outline where we have got to with VW?

There are other concerns that the Government must address too. Despite years of false emissions data, written answers to shadow Transport Ministers suggest that the Treasury has found no miscalculation of VED rates. That point was raised by the hon. Member for South West Bedfordshire. The Government are clearly out of pocket. Can the Minister confirm that that is the case and tell us what he is doing about it? What other avenues has he considered in seeking remuneration from VW? We know that he has been in touch with the criminal counsel, but he has so far chosen not to disclose advice in order to avoid undermining ongoing investigations. When was the last time he sought advice? Can he share with us any more on that? Finally, he visited Germany last month to discuss the matter with counterparts. What was the outcome of those talks?

In conclusion, we have a lot of questions, to which I hope we will get answers. The development of an accurate emissions testing regime is fundamental to improving air quality and public health and must be a priority for the Department. The Government must now give strong support to reducing conformity factors and strive for a better testing regime. They must also outline their plans on air quality and emissions reductions. On VW, it really is time for the Minister to assure not just this House, but vehicle owners and those suffering poor air quality that he has more than strong words to offer. We need action, and we need results. I trust he will not disappoint.

I am sure that the EU is not without fault, but national Governments are responsible for their own certification systems, and our certification system and the type approval process has been found severely wanting. I hope that the Minister will tell us in due course what he as Minister in this country is going to do about that.

Does the Minister have an idea of the timescale for when consumers and even the Government might receive some form of compensation?

On a point of clarity, given that the welcome reimbursement of the Government by Volkswagen presumably means the company has conceded that there is an error and a problem, why can there not be similar good news for all the vehicle owners who also need compensation?

I am exceedingly grateful, as the Minister is being very generous in giving way. Obviously, Volkswagen sells cars all around Europe. Is the Minister aware whether Volkswagen’s dealings with France, Spain, Italy or Denmark are at the same level as ours? Are such countries managing to get a better deal from Volkswagen, or are we all chugging along at the same sort of level? If he does not know the answer now—it was a bit unfair to spring the question on him—perhaps he will kindly put a letter in the post to the Members present.

All hon. Members have made important points about the scandalous behaviour of Volkswagen and the broken testing and type approval system. I am encouraged by the Minister’s response about the work that he has done, and I urge him to continue it so that individuals and the taxpayer receive compensation and the promised fix. I ask him to keep pursuing the Jones Day report and, so far as he is able to, to enable its publication, because it contains vital information. It is a shame on Volkswagen, a major international company, that it seeks even to deny the existence of a report that could expose the horror of its shortcomings.

Question put and agreed to.

Resolved,

That this House has considered the Third Report of the Transport Committee, Volkswagen emissions scandal and vehicle type approval, HC 69, and the Government response, HC 699.