Debates between John Hayes and Andy McDonald during the 2017-2019 Parliament

Mon 14th May 2018
Haulage Permits and Trailer Registration Bill [Lords]
Commons Chamber

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tue 11th Jul 2017
Air Travel Organisers’ Licensing Bill
Commons Chamber

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Mon 3rd Jul 2017

Haulage Permits and Trailer Registration Bill [Lords]

Debate between John Hayes and Andy McDonald
Tuesday 26th June 2018

(5 years, 10 months ago)

Commons Chamber
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John Hayes Portrait Mr John Hayes
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I will be very brief. This is an important Bill. As the shadow Secretary of State said, it is a contingency measure. It is a belt and braces exercise to ensure we can guarantee the seamless transport of goods across the continent. There are many hauliers in my constituency and they will be looking at this matter with some concern. It is right to say that Brexit represents a significant change. I take the view that it represents a significant opportunity. None the less, seamless transport and travel are vital, particularly in respect of fresh goods. We live in a just-in-time age, where the movement of goods in very quick order is necessary to meet the expectations that have been created as a result of that culture.

The measure, which we do not expect to come into force, is none the less important to achieve those objectives. It is the right thing for the Government to do. Had the Government failed to bring something of this kind forward, Opposition Members and others would have perfectly reasonably said that we were not being sufficiently diligent. The diligence associated with a proper approach to the defence of the interests of hauliers and others obliges the Bill we are considering tonight. It is in that spirit that it has been considered through time.

I want to pay particular attention to the points made earlier by the hon. Member for York Central (Rachael Maskell), and, if I may do so on her behalf, reiterate them. It seems to me important that the Government recognise that it will be necessary to review the provisions should they come into force and it would be perfectly reasonable for Government Ministers to confirm that that might happen. I do not think it necessarily needs to be on the face of the Bill, but it is perfectly reasonable for Ministers to give her an assurance, as a result of the compelling argument she made earlier, that that kind of process will occur. It is what good Governments do: they consider measures carefully, check how they are working in practice and commit to looking at them again if and when necessary.

Similarly, to re-emphasise a point I made earlier—many of the points I make in this House are worth amplification, as you know, Madam Deputy Speaker—it is important that the methodology for the allocation of permits is what it needs to be. It should not be merely what is suggested here, as the shadow Secretary of State and others said, and the hon. Member for York Central emphasised. It may well take a very different shape from that which is identified here. It is therefore very important that the Government are very flexible about what needs to be done to allocate permits in a way that is efficient and effective.

Andy McDonald Portrait Andy McDonald
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Does the right hon. Gentleman not agree that, while it may well be right to retain flexibility on the allocation of permits, to put in the Bill that they could be allocated on a first come, first served basis could mean people in sleeping bags waiting for permits to be handed out or some random selection? This is serious stuff. Should we really be using such vague and indeterminate language in the Bill?

John Hayes Portrait Mr Hayes
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In an ideal world, where I was still sitting on the Government Front Bench—I know that is most people’s ideal—I would have to respond to that point formally on behalf of the Government. As I no longer have those responsibilities, I will leave it to those who are now missioned to deal with these matters formally to respond.

The Secretary of State has done the right thing in bringing the Bill forward. As I said earlier, had he not done so, he would have been criticised. I do not expect it to be used, but it will provide considerable reassurance to hauliers and others. We are constantly told by the critics of Brexit that the biggest problem of all is uncertainty. Well, this Bill is not uncertain, but it is about doing what is necessary to alleviate uncertainty by dealing with the matter with appropriate diligence and salience. To that end, the Bill has my full support.

There is one final thing: I say to the right hon. Member for Carshalton and Wallington (Tom Brake) that to come to the party late, improperly dressed, and to not understand what a trailer registration scheme really means is not clever or wise, and he would be better not to come to the party at all if he is going to make such a mess of it. With that cutting aside, I conclude my remarks.

Haulage Permits and Trailer Registration Bill [Lords]

Debate between John Hayes and Andy McDonald
2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Monday 14th May 2018

(5 years, 12 months ago)

Commons Chamber
Read Full debate Haulage Permits and Trailer Registration Act 2018 View all Haulage Permits and Trailer Registration Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-R-I Marshalled list for Report (PDF, 80KB) - (13 Apr 2018)
Andy McDonald Portrait Andy McDonald
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If the right hon. Gentleman will allow me to continue, that is exactly what I am going to outline during the course of my speech.

I hope that this Bill represents the dawn of the realisation of the catastrophe that would flow from a chaotic Brexit. A few months ago the “beast from the east” left supermarket shelves across the country empty, while logistics problems forced fast food chain KFC to close hundreds of outlets because of supply shortages. These examples provide the merest glimpse of what shocks to the supply and distribution chain will look like for British consumers and businesses if the free flow of trade is not maintained following our departure from the European Union.

The Bill has serious implications for the UK’s music industry, particularly the concert haulage industry, which supports the music industry in the UK and the EU. Concert haulage operators require a community licence for road transport to the EU, which will be lost after Brexit. The Road Haulage Association says that a permit system will not work for concert hauliers, and estimates that the UK will run out of permits in 2.5 days. I have to ask: when will the Government listen to business and accept that there has to be a continuation of the current trading and transport environment, if a massive disruption of the flow of goods and produce is to be avoided?

As an island nation, ports are and will remain vital to our trading relationship with Europe and the rest of the world, so it is quite extraordinary that no Minister from the Department for Exiting the European Union has visited Britain’s most important gateway to Europe—the port of Dover. Half of the UK’s international road haulage traffic comes through Dover alone. I ask the Minister, is transport really a top priority in the Government’s Brexit negotiations?

John Hayes Portrait Mr John Hayes (South Holland and The Deepings) (Con)
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Forgive me; I did not mean to interrupt the hon. Gentleman in mid-flow, but I think that I am right in saying that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Fareham (Suella Braverman), visited Dover last week. I know that the hon. Gentleman is a straightforward Member of this House and would not want to mislead the House, so he will probably want to correct what he said. I say this to be helpful.

Andy McDonald Portrait Andy McDonald
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I am grateful to the right hon. Gentleman for making that point. I am just delighted that the hon. Lady got there eventually.

Road haulage is essential to the complex and sensitive just-in-time supply chains that underpin the UK and EU economies. Roll-on roll-off ferries face the most serious impact from a no-deal Brexit. A staggering 10,000 trucks pass through Dover each day. Almost none of these currently requires a customs clearance process. The port estimates that a two-minute delay per vehicle will generate a permanent 20-mile-long traffic jam.

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John Hayes Portrait Mr John Hayes (South Holland and The Deepings) (Con)
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The central role of good Government is to anticipate, prepare and act. In practice, of course, Governments spend a good deal of time responding to things to which they are obliged to react. Nevertheless, it is important that, as Ministers anticipate, they prepare legislation accordingly, and that is really what we are talking about today.

As I read the Bill, I could not help thinking that it is yet another piece of legislation that had its genesis during my time at the Department for Transport. We spend a great deal of time debating Bills that I had a hand in. When I was a Minister, I suppose that excessive humility meant that I did not fully accept the plaudits from the Secretary of State and the shadow Secretary of State, but now I realise just how inventive I was in the Department. It was that combination of perspicacity and imagination that led to so much legislation, including this Bill.

As has been said, the essence of the Bill is to create a framework. The first of the Bill’s two parts deals with establishing a permit system that will allow the continued movement of goods across Europe by hauliers, and the second deals with trailer registration. I do not want to go exhaustively into that—it was described very well by the Secretary of State, and others have made reference to it—but some points of amplification are worth making. I emphasise again the significance of haulage and why the measures that we are debating really matter. Both the Secretary of State and the shadow Secretary of State drew attention to the scale of the industry. It is worth something like £13.1 billion to the economy and directly employs almost 200,000 people but, of course, there are many more jobs in the logistics industry, as we like to describe it in the modern idiom. Around 2.35 million people have occupations that relate to the transit—the movement —of goods.

Through haulage, for the vast majority of goods are transported by truck, the things that we want and the things that we need—they are not necessarily the same, by the way—are brought to us, and the things that we make and sell are taken from us to other places. It is critical that the process is as seamless as possible. I note that there was mention of fresh produce. When we move things around, it is important that we do so quickly, and no more so than in the case of fresh produce. The just-in-time culture that we have created means that the lead times involved in acquiring, transporting and retailing goods are very short indeed, and were they to suffer as a result of any change, it would mean not only a considerable disruption to what we have come to expect, but significant additional costs to the haulage industry, which works on very narrow margins—typically something like 1% to 3%. I have spoken to the RHA about that, both since and while I was a Minister, and it is conscious of the need to maintain that free flow of goods not only for its own sake, but for the sake of all those it serves through the industry including, ultimately, consumers—those who buy and use the goods, and whose lives are made better by their acquisition.

It is therefore important, as the Secretary of State and the shadow Secretary of State have both emphasised, that we make the process as seamless as possible. The optimum outcome, of course, is that it be as much like it is now as possible. As the Secretary of State said, that is what he anticipates will be the product of the negotiations in which we are engaged, and his argument is compelling, because it is in our mutual interest that that is the case. It is absolutely in the mutual interest of countries across Europe that they are able to sell and buy goods as they need them.

Andy McDonald Portrait Andy McDonald
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Does not the right hon. Gentleman accept that while a principle of solidarity exists in an EU comprising 28 countries, once we are a third country, that principle of solidarity will obtain across 27 countries and their duty will be to each other, not the UK?

John Hayes Portrait Mr Hayes
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I understand the hon. Gentleman’s argument, but I suspect that the commercial interests of those countries and the pressure that commercial interests put on them will, in the end, be irresistible. For example, as was argued a few moments ago, farmers, growers and food manufacturers across Europe—whether in northern Europe or, as we heard, in Spain and Italy in the south—will want their goods brought here, much as they are now. I think the pressure to do a deal in our mutual interest will in the end rule the day.

Now, I do not know that, and the Secretary of State asked, very honestly, “How could I predict that?”—he would not want to, and he did not—but I think a deal in our mutual interest is the likely outcome. He called it his best guess; I would go further and call it my considered estimation.

John Hayes Portrait Mr Hayes
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That is why it is vital that the negotiations go well and why it is important to put in place this framework legislation. It is right that the Government prepare for all eventualities. In opposition, I spent half my time saying the Government were being too precise, too dogmatic, too determined to specify, and the other half saying they were being too open-minded and too flexible. The trouble with all Oppositions is that they meander between those two positions: on the one hand, they want the Government to be specific; on the other hand, they want the Government to be flexible. I slightly sense that that dilemma prevails in respect of the existing Opposition. This is a framework Bill—there is no need to apologise for that. The detail will come forward when we know the shape of the negotiations and how much of the Bill will be necessary. That is a straightforward and honourable position for any Government who want to anticipate, prepare and act.

The shadow Secretary of State made an additional important point about haulage that I also want to amplify. On skills and employment, he is entirely right that, irrespective of our relationship with the EU, there is a pressing need to recruit more people into the industry. As he was speaking, I was looking at notes on this very subject. He will know that the strategic transport apprenticeship taskforce, which has been looking at just these matters, published a report last year, off the back of its earlier consideration, and although there have been improvements across each sector of transport—road, rail, and so on, including haulage—there is still more to do, particularly to recruit people from under-represented groups in the sector.

When I was a Minister, work was being done, which I know is continuing under my successors, to encourage more people into the industry by, if you like, recasting or rebranding it—something I discussed with the RHA many times. That is vital not only on the purely numeric grounds the hon. Gentleman mentioned, but because we want people to have worthwhile careers in logistics. It is an important sector, and there are many good jobs to be had and many important skills to learn and use, so there is an efficacy in this as well as a necessity. To that end, I hope the work will continue through the apprenticeship taskforce. I gather from its report that there are 15,000 apprentices in road freight this year. I hope that that number will continue to grow. I established an education advisory group in the Department to advise on how we could cast out more widely in attracting people into the industry, and it seems to me that that work should also continue—but far be it from me to bind the hands of my successors.

Andy McDonald Portrait Andy McDonald
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Does the right hon. Gentleman also agree that this is not only about attracting people into the industry but about retaining them? The figures show that many young people coming into the industry do not hang around but go on to pastures new, and that requires urgent and focused attention.

John Hayes Portrait Mr Hayes
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It does require focused attention. The hon. Gentleman is absolutely right: it is about retention as well as recruitment. We must recruit from different sources, which might mean people coming back into the industry, and address the rate of attrition. We must draw on people from other sources—a good example is the armed services, where people, having learned to drive, could re-enter the private sector—and we must attract more people from minority communities, which are very sparsely represented in haulage and road freight, and more women drivers. To do that, however, we have to change some of the working conditions. That is critical to both recruitment and retention.

Madam Deputy Speaker, I hope you did not mind my digressing a little from the specifics of the Bill in order to amplify an important point that I know is keenly felt by shadow Ministers and Ministers.

Oral Answers to Questions

Debate between John Hayes and Andy McDonald
Thursday 19th October 2017

(6 years, 6 months ago)

Commons Chamber
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John Hayes Portrait Mr Hayes
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As my hon. Friend, who is such a great champion of his constituents, knows, I am a representative of Lincolnshire, so I could hardly fail to have rural interests deep in my heart.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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This week, the OECD argued that addressing the regional productivity divide between high-productivity areas, such as London, and lower productivity regions can be a key channel for fostering long-term growth and sharing prosperity. Does the Minister not accept that the Government’s cuts to rail upgrades will entrench regional transport inequalities and damage business by embedding the regional productivity divide?

John Hayes Portrait Mr Hayes
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Let us try to find common cause, shall we? It is absolutely right that we look at regional investment inequalities, and it is absolutely right, too, that we do not regard all investment in the south of England as good, while ignoring the rest. The Government are not doing that; that is the point. The Government are rebalancing investment across the whole kingdom, for we recognise that. I could be tiresome—[Interruption.] I know that that is hard to believe, but I could be, if I were to list the series of investments we are making in rail and road across the north. Rather than tiring you, Mr Speaker, or the House, we will set them out in a note, which we will distribute afterwards. Perhaps, then, the hon. Gentleman will also try to find common cause. To start with, he might want to look at the transport investment strategy that we have published, which is a starting point for learners in this field.

Andy McDonald Portrait Andy McDonald
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The Secretary of State has claimed that cancelling upgrades means affected areas will be spared disruption and that electrification is no longer necessary because the same benefits will be achieved with bi-mode trains reliant on diesel. Is his policy to provide regions across our country with second-rate railways, and is not the reality that his claims about the wonders of polluting diesel are, like digging for victory, a load of tripe?

John Hayes Portrait Mr Hayes
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Again, I simply say, let us look at the facts. We are investing in rail in the north. After all, this Government are investing in Transport for the North to do exactly what he describes. It is true that we need to look at a range of technologies to achieve what we want, but the answer to the hon. Gentleman’s question is: new trains, faster routes, more rail, more road investment—what is there not to like about that?

Air Travel Organisers’ Licensing Bill

Debate between John Hayes and Andy McDonald
3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 11th July 2017

(6 years, 10 months ago)

Commons Chamber
Read Full debate Air Travel Organisers' Licensing Act 2017 View all Air Travel Organisers' Licensing Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 11 July 2017 - (11 Jul 2017)
John Hayes Portrait Mr Hayes
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That is a perfect cue for what I was about to say. Knowing that the hon. Member for Kingston upon Hull East is a reasonable and sensible man, and knowing that the shadow Secretary of State has some experience in this field, having debated these matters with me on more than one occasion, I cannot believe that a responsible Opposition would, in the light of the pledges I have made today, on the record, push these matters to a vote.

I will ask the committee—which is already there to do as the hon. Member for Kingston upon Hull East has asked and is already producing the annual report that the amendment requests—to deliver the very assurance that he has requested. Those experts—for that is what they are—submit their report to the Secretary of State within four months of the end of each financial year. However, I am going to go even further. I am determined that the hon. Gentleman will be so captivated, encouraged and illuminated—not surprised; I would not go that far, because he knows what a good bloke I am—by the offers that I have made that he really will not want to push this matter to a vote. I am going to go further. The committee, which does indeed publish an annual report, can, as necessary, report more frequently if circumstances require. Should it believe that it needed to do so because of this legislative change, we would, ironically, have less scrutiny, fewer reports and less analysis if we were to pass the amendment than is the case now.

John Hayes Portrait Mr Hayes
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There are those on my side of the House who take a less generous view than I do of the Labour party. However, I know that what I have just described is not the intention of Her Majesty’s Opposition. They do not want to have less scrutiny, less analysis, less certainty or less clarity. They want the same degree of clarity that I seek. I am prepared to acknowledge that. However, the effect of their amendment might be to leave us in a worse position than we are in at present, and that surely cannot be right.

Air Travel Organisers’ Licensing Bill

Debate between John Hayes and Andy McDonald
2nd reading: House of Commons
Monday 3rd July 2017

(6 years, 10 months ago)

Commons Chamber
Read Full debate Air Travel Organisers' Licensing Act 2017 View all Air Travel Organisers' Licensing Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts
Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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It was all going so well until that last comment! The Minister has it right, however, when he says that the Bill is to be welcomed. The events of failure are rare, but it is imperative that this market and the response to it should develop so that people who experience those failures have recourse to a remedy. He will find a great deal of support on this side of the House for what he has said and for the Bill. I thank him for his summary and his account. He is right to say that matters in the related Bill were conducted with a great deal of conviviality, courtesy and humility, and he is to be credited with ensuring that that was so.

As the Minister said, it is with a sense of déjà vu that we are debating these changes to the air travel organisers’ licensing system. It has been only four months since these self-same clauses received their Second Reading when they made up part of the Vehicle Technology and Aviation Bill—or VTAB, as we liked to call it. It ought to be an Act by now—VTAA—but sadly we must still refer to it as VTAB. The Prime Minister’s decision to call an early election meant that VTAB, along with a whole host of other legislation, had to be dropped.

Given that we had wasted a great deal of parliamentary time and effort, it was quite a surprise to see that there was no reference to VTAB in the Queen’s Speech. Instead, the Government have decided to fragment the legislation, splitting it between the Bill we are debating today and the automated and electric vehicles Bill that will be introduced later in the Parliament. It is interesting to note that 50% of the legislative programme relating to transport for the next two years of this Parliament will merely be clauses that have been copied and pasted from VTAB, a Bill that should have already been passed into law. This surely highlights how this minority Government are out of ideas and have very little new to offer the country as they focus their attention on a desperate attempt to cling to power.

John Hayes Portrait Mr John Hayes
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With the greatest respect, I think that the hon. Gentleman is underselling himself. The progress we made in Committee and on consideration of the previous Bill meant that, when the Government came to look at the model of what good legislation should look like, they needed to look no further than the work that he and I had done. I take most of the credit for that, but I think he should take some too.

Andy McDonald Portrait Andy McDonald
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As ever, the Minister is extremely generous in his praise. He is right, however, to say that we made a lot of progress. I just hope that we do not have to do it all over again. That is the point.

The Government do not have a plan to reintroduce VTAB in its entirety, even though it should already have been taken through. Madam Deputy Speaker, you could be forgiven for asking why the Government do not dare to try to pass legislation that has already passed through this place and received support from both sides of the House. Indeed, it is a matter of considerable concern that a number of important clauses from VTAB appear to have been left out of the Government’s forthcoming legislative programme. They include the clauses in part 4 of VTAB that related to vehicle testing, the shining of lasers—which the hon. Member for Kilmarnock and Loudoun (Alan Brown) mentioned earlier—and diversionary driving courses. The clauses in part 3 relating to air traffic services also appear to have been axed. Perhaps the Minister can offer some explanation of why he previously deemed it a necessity to legislate on those issues, as they are not being reintroduced now.

Moreover, during the progression of VTAB, Labour Members raised concerns over the absence of legislation to create a regulatory framework to deal with drones. With the proliferation of drones in recent years, we have seen a sharp increase in the number of near misses with planes. The latest figures show that there were 33 such incidents confirmed in the first five months of this year and 70 last year, compared with only 29 in 2015 and just 10 in the five years before that. Representatives of the aviation industry have expressed their concern over the Government’s failure to bring in legislation to tackle this worrying trend.

Andy McDonald Portrait Andy McDonald
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The hon. Gentleman makes a reasonable point, but those matters were considered an important part of VTAB, as were the bits relating to ATOL. It is a gross omission for us to come this far and not deal with such important matters now. Certainly, if the roles were reversed, we would want to introduce legislation before a near miss turns into a catastrophic incident that could have been avoided. We have heard about an incident at Gatwick airport in the past 24 hours, and this matter should concern everyone in the House. I make a genuine offer to the Minister that we will be nothing other than wholly supportive if the Government wish to bring forward legislation and regulations better to protect our airports and other places of great sensitivity. This is a huge issue, and the drone industry and others who support such legislation believe that the freedom to indulge in this activity is coming ahead of safety at the moment. I put it gently to colleagues that we should really be looking closely at this.

John Hayes Portrait Mr John Hayes
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The hon. Gentleman does the House a service in raising this matter. The hon. Member for Nottingham South (Lilian Greenwood) challenged me on it in an earlier intervention, and I made it clear that we had consulted on it—the hon. Gentleman will be familiar with the consultation exercise that we have been engaged in—precisely because we agree that the matter requires further consideration. I am happy to engage directly in discussions with him so that we can find a way forward on drones. He is right to say that this a changing and potentially challenging matter, and we need to work not only as a Government but as a Parliament to address it, so I am happy to take up his offer of discussions on the back of that consultation and our response to it.

Andy McDonald Portrait Andy McDonald
- Hansard - - - Excerpts

I am again grateful to the Minister for his consistent, collegiate attitude and for his co-operation. His approach to this Bill is exactly the same as it was with the previous Bill, and that should be acknowledged. The Labour party shares his objective of making this Bill and the forthcoming transport Bills relating to automated and electric vehicles and to the space industry the best possible pieces of legislation as they pass through the House. We only wish that the Government were prepared to respond to the rapid technological advances of recent years and to bring forward legislation in the areas that I outlined, which are in urgent need of a regulatory framework. It has become quite clear in recent weeks that inaction can risk lives.

As we stated when the measures in this Bill were first laid out in VTAB, the broad substance of the changes to ATOL are necessary and, for the most part, welcomed. The changes will harmonise UK law with the latest EU package travel directive, leading to many benefits for UK consumers and UK travel operators. A wider range of operators, including more dynamic package providers, will likely be covered under the changes, bringing protection to many more UK holidaymakers not covered under existing ATOL provisions. The requirement for travel companies to be in line with standards at “place of establishment” instead of “place of sale” will now mean that UK companies can sell far more seamlessly across Europe by simply adhering to the widely respected ATOL flag.

However, the EU-level changes do bring about something that could have adverse effects for some UK consumers purchasing from EU-based travel companies. The changes made through the directive will now mean that EU-based companies selling in the UK have to adhere only to an ATOL-equivalent insolvency protection laid out in the member state where the business is based. In practice, that could have unintended consequences and, more significantly, costs for UK consumers. Processes and timescales for recompense may be distinctly different to what many travellers would expect under the gold standard of ATOL. The impact assessment warns:

“If consumers purchase a trip from a business established elsewhere in the EU and the company becomes insolvent there may be some costs to the consumer of processing a claim with a non-UK insolvency protector.”

Based on the latest CAA figures, that is not just something that will impact on a relatively small number of holidaymakers; it would currently compromise over 500,000 passengers. It is therefore important the Government take appropriate steps to anticipate and prepare for any negative impacts. As suggested by the Opposition when the Vehicle Technology and Aviation Bill was in Committee, making it a requirement for the Government to monitor the impact for UK consumers using EU-based companies would help inform the Government about whether they should consider further guidance or co-operation with consumers and EU member states to ensure that adequate protections are in place.

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John Hayes Portrait Mr Hayes
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The hon. Gentleman will know that the existing legislation contains an obligation to review it after five years. He is making an argument that he has made previously, and it seems to have some weight. I am open-minded about how we consider such things, and I will certainly reflect on his point about our need to consider the impact of the changes that he describes. I am more than happy to include that in our discussions about drones.

Andy McDonald Portrait Andy McDonald
- Hansard - - - Excerpts

I am grateful to the Minister for that clarification.

The Bill’s second clause is not directly relevant to harmonising UK with EU regulation, but it contains a dormant power that the Government will retain, enabling them to make considerable changes to ATOL with regard to air travel trusts. During an evidence session when VTAB was in Committee, we heard from Richard Moriarty of the CAA, a trustee of the current air travel trust, who recognised the possible merits of separating the trust to reflect the variations of products in the market. However, he explained that we simply are not there yet and that it would be wrong for the Government to use this Bill as a means of making wholesale changes without due consultation. The Minister made it clear in a letter to me that changes would be made only through the affirmative procedure, yet the Bill does not account for any further consultation as part of this measure. Labour will therefore be again seeking a commitment from the Minister, which he gave in Committee during the progress of VTAB, that the Government will conduct a thorough impact assessment and consultation before implementing the power. Mr Moriarty said at the evidence session that he hoped that the Government

“will follow the practice that they have followed today: consult with us, consult the industry, do the impact assessment, and so on.”––[Official Report, Vehicle Technology and Aviation Public Bill Committee, 14 March 2017; c. 30, Q150.]

Accordingly, if the Government were to undertake a full impact assessment and consultation before bringing forward regulations to create any new air travel trusts through the affirmative procedure, that would be fair and reasonable and would guarantee scrutiny of any further changes to ATOL.

To conclude, while the Opposition are frustrated that the general election meant that the Vehicle Technology and Aviation Bill was dropped and, moreover, we are concerned with the Government’s decision to omit a large proportion of the legislation as it is reintroduced in this Parliament, Labour none the less broadly supports this Bill. We welcome the changes that will harmonise UK law with the latest EU package travel directive, which will have many benefits for UK consumers and UK travel operators. However, we have concerns about the levels of protection given by EU-based companies selling in the UK and about whether UK consumers could lose out following the change. We will be pressing Ministers for reassurances on that during the passage of the Bill. As we did with the Vehicle Technology and Aviation Bill, the Opposition will seek further detail from Ministers on the assimilation of the directive, the impact of Brexit, and Government accountability as the Bill progresses through this House.