Grayling is prize twat - let's recall his great idea of banning books from prisons - but I think his actual answer to the question was so incoherent as to defy interpretation:
Mr Zeichner asked: “I was wondering if he could clarify for the house exactly who he thinks road users are?”
Mr Grayling told him: “Where you have cycle lanes, cyclists are the users of cycle lanes and the road users are the users of the road. It’s very simple.”
I agree that he seems to be saying that cyclists should not be on the road when there are cycle lanes available - which is legally and in practice incorrect - but I wouldn't take this to mean that cyclists are not road users when there are no cycle lanes available. It was a poor answer, reflecting a lack of knowledge and revealing a lack of interest in some aspects of his brief, but I would expect the department to issue a 'clarification' shortly.