Oral Answers to Questions

Gavin Newlands Excerpts

Thursday 3rd December 2020 Commons Chamber

[Grant Shapps]

Right at the beginning of the pandemic—I can understand if the hon. Gentleman missed it—we published the document “Decarbonising Transport: Setting the Challenge”, which will lead into a transport decarbonisation plan that we will publish by the spring. In that, we will describe the many measures that we are taking to make the UK a global leader in cutting carbonisation and decarbonising the economy, not just through the 2030 pledge but through, for example, introducing 4,000 zero-emission buses, and much else besides.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

The Transport Secretary was right to reference COP26.

Last year, sales of ultra-low emission vehicles grew by 46% in Scotland—40% faster than in England—in large part due to the enhanced home charging point grant and the interest-free loans, both provided by the Scottish Government and unavailable in England. Does the Secretary of State agree that he too should adopt the success of Scotland’s electric vehicle strategy and learn the lessons that are needed to ensure that England is not being left behind?

[Grant Shapps]

The hon. Gentleman and I share a very keen interest in these matters. I remember that when I got my electric car, 1% of cars sold were electric. The figure now across the UK is 6.5%. There have been tremendous advances in the number of electric charging points available. The £2.8 billion that we pledged at the spending review will help that to happen, with more money going into charge points and into the infrastructure investment as well. I am pleased that Barnett consequentials are being sensibly spent to increase charging in Scotland.

[Gavin Newlands]

I am grateful for that response. I should say, for the record, that my household has come down from a two-car household to one car, and we are hoping to switch to an electric car in the new year as well. [Interruption.] It is a bit too far out for an e-bike.

The Prime Minister announced in February that £5 billion was being made available for 4,000 zero-emission buses, which the Secretary of State mentioned, but to date we have not seen much evidence of that money being spent, and jobs continue to haemorrhage in the bus production sector. So how many of the promised 4,000 zero-emission buses have actually been delivered thus far?

[Grant Shapps]

The hon. Gentleman is absolutely right to point that out, but he will recall that the pandemic in between has created problems not just for the bus sector but for the entire economy, which has, by necessity, meant that a huge amount of money—hundreds of millions of pounds—has gone into supporting buses operating at all. The pledge for 4,000 buses remains, and £120 million was announced at the spending review to get on with the first several hundred of them.

Aviation Industry

Gavin Newlands Excerpts

Wednesday 18th November 2020 Westminster Hall

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

It is a pleasure to see you in the Chair, Sir Edward, and I congratulate the right hon. Member for Epsom and Ewell (Chris Grayling) on securing what has been an interesting and very welcome debate. I agree with a huge amount of what was has been said by Members from all parties.

The stark truth is straightforward and simple: the UK Government have essentially abandoned the aviation sector to its fate. To be clear, when I refer to the aviation sector, I include its large and varied supply chain, including the strategically important aerospace sector. I say “abandoned” because the Government appeared at the start of the pandemic to be in lockstep with the industry. The Secretary of State for Transport came to the Dispatch Box and said that he had saved Flybe; the Chancellor promised back in March that there would be sector-specific support for the aviation industry; and the Secretary of State stood in the same hotel ballroom as myself and the Minister’s predecessor, looked industry representatives in the eye, and said:

“I understand the enormity of what you are facing, and this Government will stand by your side.”

The new Minister—he is still relatively new, but he has an extremely difficult job to repair broken relationships and a near-broken industry—is not responsible for making any of those promises, but he is now responsible for trying to deliver on them. I know what he will say in his closing remarks about the aviation sector having had access to x millions, loan-funding from the Treasury and, of course, access to the furlough scheme, but that is not enough and it is not what was promised. How many jobs in the sector might have been saved if the Chancellor had been clear from the start that furlough would continue throughout the winter period, as many of us had called for? We will never know.

Going into this crisis, the UK had the third biggest aviation sector in the world. I would be very surprised if we come out of it in the same lofty position, such has been the difference in the levels of support given to the sector by other Governments across the world. Plenty of other countries recognise the massive and strategic importance of the sector, including the Scottish Government, which rolled out support including full business rates relief for a full year. I know that many in this Chamber have called for that to be replicated in England. The Scottish Government have also worked with Highlands and Islands Airports to invest in infra- structure and economic stimulus as we come out of the pandemic, and they have worked with the aerospace response group, industry and trade unions to preserve aerospace, manufacturing and related sectors—protecting jobs in the short term, while expanding in the long term.

However, the blunt fact is that the Scottish Government have gone just about as far as they can with the limited powers they have. I know that the Prime Minister thinks devolution is “a disaster”, but it is a fact, and the fact is that the UK Government hold the bulk of the powers—legal and financial—that can make a difference in the aviation industry.

Instead, we have seen the Government watch as the aviation industry teeters on the edge of a cliff, and then give it a shove, with their baffling decision—I accept that it is not a Department for Transport decision—to propose scrapping the VAT retail export scheme and the airside extra-statutory concession scheme. In combination, those schemes created thousands of jobs, not only at the airports themselves but in retailers across the country.

For Glasgow, the airside concession is worth £8.6 million in revenue, which will now be lost, and 170 retail jobs will be put at risk, at a time when between 1,500 and 2,000 of the 5,000 jobs based at Glasgow airport have either gone or are under threat. Across the UK, the scrapping of both schemes is estimated to cause £1.5 billion of losses at a time when the industry is on its knees. It is beyond irresponsible to slash one of the few remaining income streams that offers a glimmer of hope for many airports. I hope the Treasury sees sense and reverses course in the coming weeks, and I hope that the Minister will confirm that he is lobbying the Treasury to do just that.

That is not to say that I think all parts of the aviation industry have been behaving entirely reasonably. It would not be a speech of mine if it did not mention fire and rehire; I agree wholeheartedly with every single word that the hon. Member for Easington (Grahame Morris), my colleague on the Transport Committee, said on the issue, and for that reason I will curtail my remarks—not least because I spoke for 15 minutes on the issue yesterday in a debate that I secured.

When I come out in public to support the industry, it makes my life and the lives of everybody else who advocates for it much more difficult when companies such as Menzies Aviation and, of course, British Airways engage in such disreputable behaviour against their own staff. I would have little objection to making Government support conditional on those companies’ complying with the idea that they must treat their staff with dignity and respect, instead of working out the cheapest way to shove them out the door. I again ask another Government Minister, in his closing remarks, to confirm whether he thinks the practice of firing and rehiring should be legal and whether he thinks action should be taken.

While passenger numbers have recovered slightly over recent months, even the latest statistics from August show the scale of the challenges now and for the immediate future: Exeter, Cardiff, Norwich and Southampton are all down more than 90%, Glasgow is down 82% and Edinburgh is down 79%. The best-performing airports are those that provide a lifeline service such as the Isles of Scilly or Tiree, but even their passenger numbers are down significantly. If action is not taken soon, we face a crisis of connectivity, threatening not just regional airports, but rural communities for whom air service is essential. That would be an economic disaster not only for the communities served by those airports, but nationally: regional aviation is worth £4 billion to the Scottish economy, which is the same as its value in London.

In September, the First Ministers of the devolved Administrations—before the Prime Minister decided devolution was a disaster—jointly wrote to him asking for urgent intervention to support the aviation and aerospace sector. I am interested to know whether the Minister can confirm that they have even received a response. Certainly we have heard nothing publicly from the Prime Minister or his colleagues on what he and the Government intend to do to preserve a sector that is fundamental to what is left of our manufacturing base.

My constituency has already seen that base butchered, with 700 jobs axed at Rolls-Royce in Inchinnan and the remaining 600 or so of the workforce deeply anxious about the plant’s very future. The Government’s response in my Rolls-Royce debate was to commend the company for carrying out redundancies voluntarily rather than by compulsion. Our workers and our industry deserve a lot better than that. The Scottish Government continue to try their level best to support the sector, which also includes companies such as Spirit AeroSystems and GE, among many others. I mentioned earlier that there is an aerospace response group that meets fortnightly, but there is also a separate specific Rolls-Royce working group, which includes the company itself, trade unions, a Government Minister and officials.

Over the past 20 years, the UK proportion of the Rolls-Royce global workforce has been slashed. In the year 2000, 43,700 out of 53,000, or 82%, were based in the UK; with the latest job cuts in the system, that figure is now down to 17,000 out of 46,500, or 36%. Over the past decade and more, the UK Government have funded Rolls to the tune of well over £3 billion, and around 12% of Rolls-Royce profits have been generated as a result of UK Government grants and tax breaks. I do not mind the Government’s supporting companies such as Rolls-Royce—in fact, I welcome it—but the Government must exert a bit more influence on this offshoring issue if they are to continue to support the business so well.

It would be remiss of me not to mention climate change and its impact on the sector before I conclude. There is some great work being done by many in this area, including by the FlyZero project and the Aerospace Technology Institute. Given the perilous financial state of the aviation and aerospace sectors, I have some concerns that, without more Government support, the UK will struggle to maintain its position as a global leader in this field. I echo calls for increased funding for the institute itself and towards developing and manufacturing sustainable fuels. Much as I have urged the Government to increase incentives for motorists to switch to ultra-low emission vehicles, I also ask them to consider a scrappage scheme for older aircraft, which would have the double benefit of decreasing carbon emissions and providing a needed boost to our aerospace sector.

In previous debates on aviation during the pandemic, I have asked the Government to act and said that it was not too late to intervene; I fear that we are rapidly approaching the point when it will be too late. It is time for the Government to act, and to act now.

Oral Answers to Questions

Gavin Newlands Excerpts

Thursday 17th September 2020 Commons Chamber

[Robert Courts]

I thank the hon. Gentleman for raising that very important point. I know that that is an area in which he has a particular interest. I would be very glad to meet him and representatives of the sector to look at what may be done.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I echo the comments of the shadow Minister on the bus accident in Winchester.

Yesterday, the British Airways chief executive told the Transport Committee that he would protect BA at all costs. Those costs will be borne by 10,000-plus jobless employees and the remainder whose terms and conditions have been permanently slashed and are as yet unknown. Many of those jobs and thousands of others across the sector could have been saved had the Secretary of State kept his word to stand by the industry’s side. When will we see business rates relief for England and when will we finally see the promised sector-specific support?

[Robert Courts]

The hon. Member refers to some of the decisions taken by BA. These are, of course, commercial matters, but, as we have been clear, they are none the less ones that we regret. There are a number of aspects here, but the thrust of his question is, of course, with regard to support for the aviation sector. The Government have made available £330 billion of support through loans and guarantees across the breadth of the entire economy.

--- Later in debate ---

[Grant Shapps]

I think that the hon. Gentleman is referring to his bus review report, which I have read. It is very impressive. We share the ambition to do much of what he has just said. The South Yorkshire Passenger Transport Executive has received a £1.127 million grant, as he will know, and the Sheffield City Region Combined Authority has been allocated £703,614. We are putting our money where our mouth is. We will publish our national bus strategy, and I think he will find that it complements the bus review report that he is behind.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Bus manufacturing is a key industry and companies such as Alexander Dennis, despite being world leading, face huge challenges. The Scottish Government recently announced millions of pounds of funding for ultra low emission vehicles, which is vital not just to the bus industry but to communities and businesses across the country. Will the Secretary of State please accept that our bus industry is teetering on the brink and needs a green bus fund rolled out now, not after Alexander Dennis and other companies like it are gone?

Aviation Sector

Gavin Newlands Excerpts

Thursday 10th September 2020 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Let me, too, start by welcoming the new Under-Secretary of State for Transport, the hon. Member for Witney (Robert Courts), to his place—if he is listening. He has a fantastic job, albeit an extremely difficult one, because the challenges facing our aviation industry are manifold and unprecedented. Our Committee managed to examine them in depth and detail, even though Members were scattered in spare rooms and at dinner tables around the country. That is a tribute to the Clerks, the staff of the Committee and its Chair, the hon. Member for Bexhill and Battle (Huw Merriman), who opened the debate so powerfully. I thank them for their generosity and hard work in ensuring that the Committee’s report was as thorough as it was. Those challenges facing the industry are not going away, and as the decision to scrap the furlough kicks in over the coming weeks they are just going to get worse. Aviation faces a crisis the likes of which has not been seen since world war two.

As others have, I wish particularly to highlight the fact that regional airports across the UK are facing existential challenges. Too often, aviation policy and debate seem to be driven by the big London airports, particularly Heathrow. The local airports around these isles, such as Glasgow airport, in my constituency, provide not only domestic links, but connectivity to Europe and a world without a stopover in the south-east of England. That connectivity is now under serious threat. Many airports are teetering on the brink, hit by a double whammy of coronavirus and the collapse of Flybe earlier this year. Others still face short-term and long-term challenges that not only threaten their businesses, but risk having a severe impact on other sectors of the economy as well.

There is a real urgency to this issue, and recommendation 9 of the Committee’s report urged the Government to commit to complete and publish their much-heralded regional connectivity review by the end of the year. To say that the Government response is underwhelming is an understatement. It said:

“Workstreams focusing on regional connectivity will continue beyond the publication of the Autumn recovery plan”—

one that is already coming too late for many. The only action in response to the connectivity points was the support for some Northern Irish routes: nothing about support anywhere else in the UK; nothing about increasing use of public service obligations; and, on the review, nothing about a definite timetable, let alone the required acceleration to it. This simply is not good enough. I ask the new Minister to look at this issue and to do all he can to bring this forward.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)]

On regional connectivity, the first airline to fall foul of covid was Flybe. Does my hon. Friend agree that in supporting the Flybe workforce as a result of the pandemic, EY and the Government have been completely neglectful? The workforce have been cast aside and completely ignored throughout this whole experience. They should have had full entitlement to the job retention scheme and should have been protected, because they are essential to the recovery post covid.

[Gavin Newlands]

I could not agree more. The Transport Secretary came to the Dispatch Box and said that he had saved Flybe. Furthermore, the Chancellor promised back in March that there would be sector-specific support for the aviation industry. The Secretary of State stood in the same room as me, looked the industry in the eye, and said, “I understand the enormity of what you are facing and this Government will stand by your side.” But where is he? Where are the Government? The loyal workers of British Airways, EasyJet, Menzies Aviation, Swissport and so many others look at their P45s or their shamefully slashed contracts and do not think that the Government have been by their side. What is left of the sector is waiting. As of now we have seen nothing, and, as we have seen, it is the employees who are taking the brunt.

The Committee also recommended that business rates relief should be extended in England and Wales to aviation businesses. The only sector-specific support for the aviation industry has come from the Scottish Government and Northern Ireland Executive in giving airports and ancillary firms a rates holiday for a year. The Treasury must step up and do the same.

[Sarah Olney (Richmond Park) (LD)]

Will the hon. Gentleman give way?

[Gavin Newlands]

I will make some progress.

We also looked at problems faced by thousands of customers in their attempts to secure refunds from airlines after cancellations caused by the pandemic. It is unacceptable that airline after airline has decided that the law does not apply to them—although given the example set this week by the Government it is perhaps unsurprising—and tried to evade their legal responsibilities by fobbing customers off with vouchers. While welcoming the recent, belated announcement extending the protections under the ATOL—air travel organisers’ licence—scheme, the reprehensible behaviour by some airlines has shown that we need to look at how the system operates and whether we should be keeping passenger fares in trust.

This PR disaster has been confounded by the actions of airlines such as British Airways/IAG. While making full use of Government finance, BA/IAG and its hatchet man-in-chief, Willie Walsh, who has just skipped off into the sunset with an £800,000 bonus pay-off, have sacked 12,000 staff and fired and rehired 30,000 more, with staff forced to take wage cuts of up to 60% and drastically reduced conditions, under threat of being thrown on the dole in the middle of the biggest economic crisis since the war.

We have also seen ground handler Menzies Aviation follow a similar path—this despite, during a phone call with me, assuring me that it absolutely would not be taking this kind of approach: an approach that we said would swiftly be followed by others if the Government refused to act. So it has proven, with blue chip company Centrica/British Gas making the same threats, along with many other companies across the UK. This sort of disreputable and despicable management tactic should be against the law, but is not. I again repeat my call for the Government to get behind my Bill or introduce their own measure to make these bully-boy tactics illegal. But despite the difficulties they cause for advocates like me, an industry should not and cannot be judged on the behaviour of its worst members.

At the start of this period, aviation supported nearly 1 million direct and indirect jobs. For those of us who represent airport constituencies, there is real danger that the flood of redundancies becomes a tsunami, with a catastrophic impact on our local and regional economies. The effects on the supply chain are even more devastating when it comes to aerospace companies such as Rolls-Royce. At Inchinnan in my constituency, 700 jobs—over 50% of the workforce—are gone. These were high-skilled, high-value jobs, now lost from our economy, perhaps never to return. I fear for the long-term future of high-level manufacturing like Rolls-Royce if the Government continue to lift not a finger to save jobs and save local communities.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

At the Prestwich aerospace cluster there are 4,000 jobs, and over 10% have already gone. Aviation is a worldwide industry. How the aviation sector in the UK is going to come out of this depends on support from the Government. Other Governments are extending their furlough schemes. Is it not the case that this UK Government need to extend the furlough scheme and invest in sustainable technologies? We need to provide further innovations so that the UK leads the world—leads other countries—and comes out stronger and better.

[Gavin Newlands]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Please reply very briefly, because you really do have to sit down at 3 o’clock.

[Gavin Newlands]

Okay. I recognise that when looking at our more successful and dynamic European neighbours, seeing such success is sometimes hard for those on the Government Benches. They must surely admit, however, that at least those countries have a plan that goes further than something scrawled on the back of fag packet. France and Germany have decided significantly to extend their furlough schemes because it makes economic sense—

International Travel

Gavin Newlands Excerpts

Monday 7th September 2020 Commons Chamber

[Mr Speaker]

I call the Scottish National party spokesperson, Gavin Newlands, who has two minutes.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I thank the Secretary of State for his statement, which we also received a minute after he was due to deliver it.

We can see from all the recent data that coronavirus is currently spreading far more rapidly throughout the UK and many parts of Europe than in recent months. As a result the red list of countries from which travellers must quarantine on their return has been increasing steadily in recent weeks. Often the UK’s four Governments have come to the same conclusions on quarantining decisions at the same time. However, Scotland and Wales have occasionally made different decisions, as is their devolved right. Portugal was recently placed on the red list for Scotland and Wales, as it is now experiencing 23.2 cases per 100,000, but the Secretary of State accused the Scottish Government of creating confusion by placing Portugal on the quarantine list and of jumping the gun on Greece. Indeed, he doubled down on this in his statement today. The Scottish and Welsh First Ministers have not criticised him or his Government for their decisions on quarantine, so these are very unfortunate remarks that the Secretary of State should reflect on and perhaps apologise for.

The resurgence of coronavirus has shown that the trouble for the airline and tourism industries will persist for quite some time. At the risk of sounding like a broken record, what further support for the airline industry specifically can the Secretary of State commit to, and will he actually keep his promise to the industry of specific support? If there is a second wave of coronavirus that decimates international travel again, the industry could go back to square one in terms of the pandemic. Does he agree that that makes a strong case for the argument that targeted extensions of the furlough scheme are necessary?

Further to the point that the Chair of the Select Committee, the hon. Member for Bexhill and Battle (Huw Merriman), made, may I push the Secretary of State on the timeline for this aviation traveller quarantine testing programme? When will he bring that back to the House by? Finally, nobody travels more internationally than cabin crew and pilots, and recent weeks have seen many loyal British Airways cabin crew out of a job having refused to be fired and then rehired on slashed wages. Will the Secretary of Secretary of State apologise to those workers for failing to protect them?

[Grant Shapps]

Once again, I will certainly be investigating the statement issue. I am very intolerant of things being dispatched late from my office. I will write to you, Mr Speaker, and to the Members concerned to let them know what happened.

I know that the hon. Gentleman shares my passion for aviation, and I want to answer his points, but it is important to mention the need not to believe everything you read in the newspapers. I know that this will come as a shock to Members across the House, but things are not always accurately reported. I did not criticise Scotland. I simply used the example to explain that it was unable to have the granular data and had to remove the whole of Greece as a result. On Portugal, as he may have heard me say, although the incident rate was higher, the percentage of positive tests had reduced, which is why we came to different decisions. That is within our right. I have spoken to my opposite number in Scotland today and explained that will be further sharing the data to make granular decisions on islands, if that is what the Scottish Government wish to do.

I want to stress our support for not just airlines but the whole aviation sector. It is interesting that this is frequently mischaracterised as being a lack of support, but when we add it up, it comes to billions of pounds. Billions of pounds is not a lack of support. This is taxpayers’ money that we are giving to commercial organisations to try to keep them going.

On the hon. Gentleman’s point about testing, I absolutely will return to the House. We have to have the science behind us to do this. It is the same with travel corridors and the island approach. We cannot return here until there is a test, for example, that will work under the circumstances described. So far, as far as I am aware, Porton Down has not approved any of the private tests that we read about every weekend in the newspaper—“It’s solved; we can just do this.” I can only work to the speed of the scientists, but I certainly will not delay.

Oral Answers to Questions

Gavin Newlands Excerpts

Thursday 2nd July 2020 Commons Chamber

[Grant Shapps]

That is a lot of rhetoric, but, if the hon. Gentleman likes, I will go into some of the money that is being spent. For example, there is the trans-Pennine route, a multi-billion pound upgrade of the route from Manchester to Leeds. Then we have an extra £10 million initially to sort out the Manchester corridor, which was announced by the Prime Minister on Tuesday. There is the High Speed North project, which runs into multi-billions. I will write to him, and I hope that he will come back to the Dispatch Box surprised and perhaps withdraw his words when he sees the multi-billion pounds that are being spent in the north right now.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Swissport, 321; Rolls-Royce, 700; Menzies Aviation, 160; and hundreds and hundreds more between British Airways, NCP, easyJet, Ryanair, Jet2, Flybe, BA CityFlyer, TUI and SSP. These are not national statistics, but the aviation job losses in my constituency alone. Might this sector finally get some good news in the Chancellor’s statement next week? If the Secretary of State will not comment on specific aviation companies, will he tell us in general whether he personally thinks it fair that employees can be fired and rehired on slashed terms and conditions?

[Grant Shapps]

As I mentioned in my previous answer, I think the hon. Gentleman is right to be concerned. We need to ensure that there is fair play for employees. Everybody understands that it has been an incredibly tough time. Everyone knows the furlough scheme and many other measures—£330 billion-worth of measures—have been there to support the sector. There has also been an individual process that companies—whether ground handlers, airlines or airports—have been able to go through with the Treasury to access additional money. I would appreciate the hon. Gentleman’s help in ensuring that air bridges can get going as quickly as possible and be reported to the House. I am very keen to get the devolved Administrations, including the Scottish Government, on board so that we can get this thing announced.

[Gavin Newlands]

Alexander Dennis is a world-leading bus manufacturer, but that sector is also on its knees due to the coronavirus crisis. I welcome the Prime Minister’s re-announcement on bus investment, but it needs to be brought forward in full now. I ask the Secretary of State not to rule out investing in low-emission Euro 6 diesel buses to replace some of the older high-polluting models, helping to reduce carbon emissions more quickly and saving thousands of highly skilled jobs across the industry to boot.

[Grant Shapps]

Absolutely. The £3 billion, which is going into new buses, will help us to produce 4,000 additional buses. We want them to be low and zero-carbon electric buses, of course, but also hydrogen buses, so we will certainly be taking that forward. I will be saying more about that very shortly.

Exiting the European Union (Civil Aviation)

Gavin Newlands Excerpts

Wednesday 10th June 2020 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I apologise for my late entrance, Madam Deputy Speaker. I was sauntering over unaware that the last SI had been moved formally. The sauntering turned into a sprint when I saw the monitor.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. For the avoidance of doubt, I must say that in current circumstances it is not necessary for everyone who is taking part in a debate to be here at the beginning—just in case the House happens to be full and we want to keep the numbers down. Most unusually, therefore, the hon. Gentleman has done nothing wrong.

[Gavin Newlands]

I will take that in the spirit in which it was intended, Madam Deputy Speaker.

The SI comes at a difficult time for the aviation sector, as has been highlighted, and one that undoubtedly will see a significantly impacted and reduced sector by the time these regulations come into force. Notwithstanding the fact that Scotland is being dragged out of the EU and the transition period against our collective will, and that the regulations are therefore a matter of regret to us, it is not in our or anyone’s interest to interrupt regulations that ensure minimum insurance requirements for air carriers and aircraft operators in respect of passengers’ baggage, cargo and third parties.

With that said, in looking at the issue of insurance in aviation, perhaps we should be debating whether airlines have or can access appropriate business interruption insurance to cover situations such as the one that we face right now. If they had that insurance, we might not now be in a situation in which so many of our constituents waited inordinate lengths of time to secure a refund—indeed, many are still fighting to get one. That is why we on the SNP Benches have called on the Government to implement a travel guarantee fund, which may well still be necessary.

In my dealings with operators, they have said that the rights in respect of cancellation refunds in essence go only one way. In other words, if the holiday provider cancels a holiday, be it because of travel advice or any other reason, the consumer is entitled to a full refund, but if the passenger cancels a holiday because of Foreign and Commonwealth Office travel advice on the date of travel or the Government’s quarantine policy, only a portion of the refund, according to the terms and conditions of the bookings, is payable. Although it strays outside the scope of the regulations, does the Minister think that is fair?

The sector may not be as scaled down as we fear if the Government show the same level of support for this strategic sector as that shown by many other Governments around the world, including Scotland’s. I do not want to stray any further from the tight confines of the regulations, but other issues—including the situation facing workers at Rolls-Royce and British Airways, and right across the sector—may well be raised in much detail in my Adjournment debate, which will follow proceedings and which I am shamelessly plugging right now.

To conclude, I reiterate that despite the fact that we do not accept the basis by which the UK Government give effect to legislation that takes Scotland out of the EU, nor the transfer of discretionary powers from the Commission—an organisation accountable to the European Parliament and member states—to Ministers as individuals, we recognise the need to ensure that EU regulations are maintained on exit day, regardless of the constitutional situation. That is in the interests of consumers, passengers and businesses, and as such, we will not vote against the motion.

--- Later in debate ---

[Rachel Maclean]

This is a great opportunity for Members across the House to express their support for the aviation industry in their own constituencies and across the whole country. The Government share that support.

The hon. Member for Bristol East (Kerry McCarthy) has given a clear and welcome commitment that she will be supporting this SI, although I understand that she may reserve the right to oppose and debate in the future, as is absolutely right. She asked about the transfer of powers from the European Commission to the Secretary of State. I can reassure her that as part of preparations for leaving the European Union, we, as a responsible Government, are preparing for all scenarios. We absolutely expect that the minimum insurance levels will apply for aviation in any scenario. She referred to the amount of SIs that we have to get through. Ministers are working closely with officials in the Department to ensure that we can reach those commitments, and we expect to be able to do so. We expect to stick to the commitments that we have given, especially on aviation.

The hon. Lady referred to the financial support that we are looking to provide to the aviation industry. The Aviation Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), has discussed those points at the Dispatch Box, and I will certainly take the hon. Lady’s comments back to her. A vast range of support has been given to businesses across the country, including many of the airlines that we all use. We expect that to continue and will keep all those measures under review.

The hon. Lady finally asked me a little bit about the Government’s position on social distancing and quarantine. As she will know, all the measures are kept under review, and our priority is to keep people safe and to be guided by the science. We will continue that dialogue because we understand the pressures on the aviation sector.

It is a great pleasure to hear from my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), who highlighted the importance of aviation in his constituency. I understand that there is a gliding club there. I am not sure whether he is a keen glider himself, but I wish the club well. I reassure him that we have already agreed, and have in place, a bilateral aviation safety agreement with the US. He also touched on air bridges. This policy has been introduced because it is our priority to keep people safe. We are looking into these matters closely and are keeping them under review as the position of the coronavirus pandemic progresses in this country.

[Gavin Newlands]

In looking at the potential dates for the introduction of air bridges, are the Government taking into account the different holiday seasons around the UK? England and Wales obviously have a significantly later holiday season than Scotland and Northern Ireland. Scottish and Northern Ireland airports will therefore be adversely affected if air bridges are brought in at the end of, or after, the Scottish and Northern Ireland holiday seasons.

[Rachel Maclean]

I thank the hon. Gentleman for his point. That matter is outside the scope of this particular SI, but I assure him that I speak to the devolved Administrations on a regular basis, so all these concerns are being discussed in the Department and I will certainly take his point back with me.

The hon. Member for Strangford (Jim Shannon) expressed his support for aviation security, and mentioned the Bombardier plant in his constituency. We are aware of all those concerns, and are keen to work closely with him. I discuss connectivity with colleagues from Northern Ireland in my regular meetings with them. The Government recognise the importance of preparing throughout the year to ensure that we bring forward the required legislation for all possible scenarios at the end of the transition period and for Parliament to have the opportunity to scrutinise it in the normal way. This instrument, as we have seen, is essential to ensure that the legislation on aviation, which is an important part of the regulatory framework for civil aviation, continues to work effectively at the end of the transition period. I hope that the House has found this informative and that it will join me in supporting these regulations.

Question put and agreed to.

Covid-19: Aviation

Gavin Newlands Excerpts

Wednesday 3rd June 2020 Commons Chamber

[Mr Speaker]

I call Gavin Newlands, the Scottish National party spokesperson, who has 1 minute.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Back in March, the Chancellor said he was working on a specific package of help for airports and airlines. We are still waiting for that support. Will the Minister press the Chancellor at least to follow the Scottish Government’s lead in giving the industry 100% business rates relief for a year? Will she also echo what the Chair of the Transport Committee said about the despicable behaviour of Willie Walsh and IAG? In the short term, we all understand and accept that the industry needs to reduce in size, but the manner in which Mr Walsh is choosing to do this should be illegal, if it is not already.

This affects the supply chain too. Sadly Rolls-Royce has today confirmed it intends to cut 700 jobs at Inchinnan in my constituency. The company is looking to offshore yet more work, despite having taken UK Government research and development money and job retention scheme money. The UK, but particularly Inchinnan, is being disproportionately affected. Are the Government engaged with, or have they offered any support to, Rolls-Royce to mitigate job losses? Finally, will the Minister join me in urging Rolls-Royce to engage meaningfully with the Scottish Government on supporting jobs at Inchinnan?

[Kelly Tolhurst]

The hon. Gentleman has raised several of these points with me previously, and I have tried to articulate to him before the support being offered to the aviation sector. Once it has looked at all the Government schemes and exhausted all other possibilities, such as going to shareholders to see whether they can support their businesses, businesses in the sector can come to the Government to discuss bespoke support. As he would imagine, those discussions are ongoing.

On business rates, which the hon. Gentleman has, rightly, mentioned before, the Chancellor was clear about where those business rate alleviations would happen and that is obviously a matter for the Treasury. On the impact of the reduction in aviation on the wider jobs market in the aerospace industry, and particularly on Rolls-Royce, as I have outlined, the furlough scheme was not introduced in order for businesses to put people on notice of redundancy while they were on furlough. As hon. Members would expect, we will work across Government, including with colleagues in the Department for Business, Energy and Industrial Strategy, to assess the significant impact that will be felt across the economy, and particularly in the wider aerospace sector. We will do whatever we can to ensure that we engage with those businesses and protect as many jobs as possible.

Oral Answers to Questions

Gavin Newlands Excerpts

Monday 18th May 2020 Commons Chamber

[Grant Shapps]

My hon. Friend is absolutely right: we are making available a huge amount of support, including things such as the coronavirus large-business scheme—in other words, the coronavirus job-retention furloughing scheme—and various other business-interruption schemes, but it is true to say that airlines and the aviation sector in general are facing a particularly hard time. They were first into this crisis and we think there will be quite a long tail to their coming out of it. I am therefore working closely with my right hon. and hon. Friends in the Department for Work and Pensions to support workers who lose their jobs as well.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP) [V]]

The Scottish Government have given full business rates relief to the aviation sector; by contrast, the UK Government promised sectoral support for aviation before reneging. Last week, Willie Walsh floundered before the Transport Committee when trying to justify the cull of 12,000 British Airways employees—including many from BA CityFlyer, which is based at Edinburgh—despite having access to €10 billion of liquidity, the vast majority of which was generated by British Airways profits. What are the Government actually doing to prevent tens or even hundreds of thousands of job losses in the sector?

[Grant Shapps]

Not only do we have the Bank of England scheme, which enables companies that would not ordinarily have the ability to raise money through a paper route; we also have the business interruption loan scheme for different-sized businesses, the time to pay flexibility, financial supports to employees and the VAT deferrals. We also have a special process in place, available only to the aviation sector, so that when it runs out of those other options, it can talk to us about it. That request needs to be made formally in writing to me. I then discuss it with the Treasury, and many aviation-oriented businesses are in the process of doing that.

Covid-19: Transport

Gavin Newlands Excerpts

Tuesday 12th May 2020 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Gavin Newlands, with a two-minute limit.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP) [V]]

Although many businesses across the transport industry are fighting for survival, I note that this is the first time since this situation began that we have seen a Transport Minister in the Chamber delivering a statement or responding to an urgent question. With that said, I welcome the accelerated investment in active travel schemes, which follows a similar announcement by the Scottish Government back in April.

The guidance for England highlights the serious challenges that operators will face in the implementation of the guidance for the foreseeable future and the real and understandable anxiety facing the travelling public. In the section that deals with vulnerable workers—those with medical conditions for whom coronavirus is a serious risk—it says that employers “should offer support”,

“should consider the level of risk”

and should consider

“the guidance on clinically extremely vulnerable”

people and so on. The word “must” does not appear once. Does the Secretary of State not agree that the language is too weak and needs to be strengthened, lest some clinically vulnerable workers be put at risk?

The running of regular services with capacity cut by up to 90% is unsustainable without Government support. Has the Secretary of State estimated how much the implementation will cost and when his Department will start to fund the support required by operators and local government? Given that I am still waiting on a response to any of the letters that I have emailed to the Secretary of State, dating back to the start of April, on the support—or rather, the lack of it—offered to sectors such as road haulage, coaching, roadside recovery, holiday travel and aviation, when does he plan to make a statement covering those issues?

In Scotland, aviation businesses such as airports, Loganair and baggage handlers are exempt from business rates for a year, but people are losing their jobs right now, with businesses folding or being forced to restructure and downsize, and some, such as IAG British Airways, sadly seeing an opportunity to force through changes to workforce terms and conditions that they had been trying to implement for a decade. The extension of the furlough scheme is welcome, but with social distancing likely to be with us for some time, the aviation sector requires more support; when will the Secretary of State introduce such measures?

[Grant Shapps]

I do not know whether the hon. Gentleman was able to catch the previous statement from my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy; he answered some of the questions about what employers should be doing.

One of the main characteristics of the UK’s response to this crisis, unlike in other countries, has been that we have asked people to do things—for example, to stay at home—and that has been very widely followed and accepted. In the same spirit, we expect—indeed, we anticipate—that businesses will behave in the same way, as my right hon. Friend Business, Energy and Industrial Strategy said not half an hour ago. He has increased the amount of money provided for inspections, for example, to make sure that that happens, but we do look to employers to make sure that they behave in a sensible way. Of course, employees will have all the usual routes—including ACAS, local authorities and the Health and Safety Executive—available if they do not feel that that is happening.

The hon. Gentleman is right to point out that a massive amount of support has now been provided to public transport in particular to keep it going. In England, that has involved support to all the train operating companies and to the bus operators. I realise that the finance is separate in Scotland and goes through the Scottish Government; some of the hon. Gentleman’s questions seemed to me to be more applicable to them. I do, however, think that the support provided across the United Kingdom is an indication of where we are all much better off working on these things together, and I welcome that partnership as we seek to save, where possible, aviation companies, bus operators and the others he mentioned.

I refer the hon. Gentleman to the answers that I provided to the shadow Secretary of State, the hon. Member for Oldham West and Royton (Jim McMahon), on the support that is not necessarily publicly exposed, but is none the less available, to the aviation sector and that few other sectors of the economy enjoy—it can run out of all the different schemes that the Chancellor of the Exchequer has provided, and now extended, and still have additional discussions beyond that. I can confirm that we are in those discussions, including with Scottish companies.