§ Mr. DrewTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the future of vehicle licensing. [143925]
§ Mr. HillThe system of registration of all motor vehicles will continue. A system of Automated First Registration and Licensing of vehicles by manufacturers has been developed and now covers over 60 per cent. of new registrations. A similar system is being developed for use by independent importers.
The system of registration and periodic relicensing performs a number of important functions including the vital role it plays in the fight against crime through the maintenance of the vehicle register. It also helps to ensure that vehicles meet statutory roadworthiness and insurance requirements.
In recent years the regime for Vehicle Excise Duty has undergone substantial changes, principally aimed at encouraging more environmentally friendly use of vehicles—for example, the introduction of a new system of graduated VED for new cards based on CO2 emissions. The Government also introduced in June 1999 a new lower rate of VED for smaller-engined cars up to 1100cc. In March 2001 this limit will be raised to 1200cc and the Government have signalled their intention of raising that limit to 1500cc from July 2001.
For goods vehicles, the Government have taken into account the role played by road transport in maintaining a competitive economy. Thus, following the pre-Budget Report last November, VED for goods vehicles has been cut by up to 50 per cent. The Government have issued a consultation paper on the future of VED for goods vehicles seeking views on a number of proposals including fewer VED rate bands, greater flexibility of vehicle configuration within each rate band, better environmental signals and reduced tax on vehicle ownership. The consultation closes on 12 January.