Jim McMahon
Main Page: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)Department Debates - View all Jim McMahon's debates with the Department for Transport
(1 day, 13 hours ago)
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It is a pleasure to serve under your chairship, Ms Vaz. I congratulate my hon. Friend the Member for Bolton South and Walkden (Yasmin Qureshi) on securing this debate, the importance of which is reflected by the number of Members who have turned out—some of them from further afield than Greater Manchester. There is clearly a pattern of airport operators looking to maximise every aspect of income from the land that they own.
In Greater Manchester, we are very proud of Manchester airport. It was built and grown by the local authorities, and they remain an important shareholder of the airport, as well as the wider group, which includes East Midlands and Stansted airports. The benefit of that, particularly during those 14 long years of austerity, was that the airports were providing a dividend payment to the local councils to fund local public services.
With that in mind, Manchester airport has a bigger responsibility than just paying dividends. It has an important economic role to play in our city region and the whole of the north of England. As has been said, it is a gateway to Britain for those coming in. Their experience on arrival and when being collected by loved ones will really shape that experience. We are very proud of it and it is vital to our economy. It is a significant employer that drives economic growth, and it is a thriving hub supported, by and large, by the public.
The charging policy was introduced in 2018 and was controversial at the time. I may have a slightly different view of charging policies, perhaps because from a local government finance point of view all streams of income are welcome, but I think the principle of payment has been settled for most people. However, I strongly believe that any payment system must be fair for those who pay it. In far too many people’s experience, the system at Manchester airport is not one of fairness.
Many years ago, there was a campaign in Oldham against the weekly payment stores where people go in to buy a washing machine or TV and then pay a set weekly amount. At the time, the campaign was against BrightHouse. BrightHouse’s business model relied on people not being able to afford the weekly payment. If they could not make the payment of, say, £20 a week for a washing machine, they could not make a £19 contribution if that was all they had; BrightHouse wanted either full payment or no payment. It would reject the £19 and then charge a penalty on top. For every normal person, that is not a fair way of doing business, but for BrightHouse, the business model relied on it. That is how it made its money.
We need to be careful, when looking at any system, to make sure that it is not built on inherent unfairness as a way to generate money. This is not about whether £5 is a fair charge to pay; it is about what happens if someone does not pay, and whether the penalty is proportionate.
My hon. Friend makes an excellent point about fairness. I am concerned about these charges, because someone I know took one minute extra while trying to get out of the airport, and he was lumbered with a £60 fine. That is not fair.
That is the point. For the sake of a £5 fee, the penalty could be a full day’s wage for a low-paid worker. Is it a fair penalty to take away a day’s pay from somebody for going over by a minute? Most people would say that that is not a fair response.
Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)
Doncaster Sheffield airport in my constituency is about to open. I want there to be access for everybody, and I want everyone to feel that they can use it. For some people, it is not optional but essential to get really close to the terminal because of their disabilities. Does my hon. Friend agree that, in principle, whatever regime we have in future must take into account those people who need to be close and give them a grace period without having to pay, so that they can get on their plane and go on their dream holiday or work trip?
I think so. It is not just about being fair; it is about being reasonable. We have all dropped loved ones off at the airport. We know how stressful it can be, and we know that the family member giving the lift normally tries to fit it around other things as well. Sometimes they will be dropping people off in the early hours of the morning. They rush to the airport, drop their loved ones off, say their goodbyes, make sure they get on the flight nice and safely, a bit upset perhaps that they are leaving, go home, maybe go to bed, and wake up in the morning—and before they know it, the day has taken over. It can be very easy to miss the deadline to pay. If it were extended from 24 hours to, say, 48 hours, most people would eventually say, “Hang on: I should have made that payment.”
It cannot be that every organisation relies on an app. In my town, the hospital and the leisure centre now have apps to pay, and so do some supermarkets. There are so many apps, and keeping track of them can be very difficult, so some people will have to search out how to make the payment. That is where the idea of reasonableness really comes in.
A lot has been made of transport links to airports. At Edinburgh airport, we have excellent links—it is the end of the tramline and there are special buses—but if people are being picked up or dropped off, they have to pay £6 for the first 10 minutes and £1 for every minute after that. That is difficult for people on a fixed income. The holiday may be the big thing of the year, but if the flight is late they face bigger charges, so the principle of fairness does not seem to apply. Taxis also have to pay the charge, so there is an extra cost there too. Does the hon. Gentleman agree with me?
Many people ask their loved one to send them a message when they land or when they pass through the terminal ahead of collecting their baggage, but in Manchester airport there have occasionally been delays in getting the luggage off the plane and sent through to the terminal, or the conveyor belt has not worked in sending the luggage through, so faults with the airport or airline delays can lead to a penalty.
I will make some progress, because I am mindful of the time.
On reasonableness, of course an app can be used if it is a convenient way to pay, but why not have a simple contactless payment system at the lay-by where the luggage is taken out, so that people can tap in there and then? Then they would not have to wait 24 or 48 hours to pay online. With a lot of these things, if the lived experience of those using the system had been thought about when it was brought in, it would have been designed very differently.
In November, we met the managing director of Manchester airport, Chris Woodroofe. We raised those points and put forward a number of requests. The first was for payment on site, so that people can pay not just on an app, but when they are at the airport.
Secondly, we asked for an end to the system that allows charges to be racked up. For example, there may be separate lay-bys for arrivals and departures, so it is very easy for someone not familiar with the airport to pass through the arrivals terminal drop-off point, realise that is the wrong place to be, drive around the block and eventually get to the correct location. If they do that, the system charges them twice because they have passed through one before they get to the other. That could be easily resolved using technology.
These organisations do not have the legal powers that local authorities have, but rely on contract law in enforcement. Many airports have confusing road networks that rely on roundabouts, with one-way systems through the terminals to drop off. In contract law, for a contract to be fair, those entering into it must have the right to decline it. How can they have the right to decline if they are charged at the moment they enter the place where the signs advising them about the contract are, with no way to reverse or pull out? Those dropping off should have the ability to say, “Now that I am aware of the charges, I don’t agree and will find a different way of dropping off.” Some airports have a bus that enables drop-offs further afield. Some people may not have been aware of that before they arrived, but may choose to use that.
Although I am personally sympathetic to the idea that charges can be realistic, Manchester should not follow Gatwick airport and go from £5 to £10, or even close to it. Most people would find an airport’s charging £10 to drop off completely unreasonable and unfair.
John Milne
Gatwick is precisely the airport that I was going to raise. It jumped to £10 in very short order, over a couple of years. That is an enormous amount of money for something that takes a couple of minutes. The objective is allegedly to cover the increase of business rates and to fund airport expansion. Does the hon. Member agree that the public should not have to bear the cost of an airport’s expansion? It benefits private companies financially, but puts pressure on public services, trains and transport and means that people are parking all around the airport. Does he agree that that is unfair?
Logic says that business rates are derived from the commercial value of the asset. The opposite is true of Gatwick—if it commercialises a lay-by, the business rate liability probably goes up—so I am not sure that that quite solves their problem.
This debate has been important, and I express my appreciation of my hon. Friend the Member for Bolton South and Walkden for securing it. We are very proud of Manchester airport and the airport group that it operates, but we are determined to see a revision to the ability to pay, how to pay and the grace period—from 24 hours to 48 hours—and I hope that we see progress.
Several hon. Members rose—
Throughout the whole conversation, the thing that keeps coming to mind is: why would the airports not want to provide a payment option to pay there and then at drop-off, if not for the fact that they would raise less revenue because they would not be able to charge a penalty if people miss the 24-hour window?
The hon. Gentleman is absolutely right. That is exactly the kind of evidence that a judge would assess to establish whether sufficient notice had been given and how onerous a term is.
The second part is about whether the travelling public accept that this is a reasonable charge and has become the norm, as the hon. Member for Oldham West, Chadderton and Royton asserts. An awful lot of people do not feel that it is fair in principle to charge for this service, because no real service is being supplied. People are occupying a bit of tarmac for one or two minutes. It used to be free, so the feeling of value is limited at best.
The hon. Member for West Dorset (Edward Morello) talked about a hidden charge, and he was absolutely right. As passengers, we are incredibly price-conscious when it comes to buying our flights. We will wear only one pair of socks for the entire holiday in order not to pay for baggage. We then get lumped with paying a tenner for being dropped off, and it is a hidden cost—it is not in the headline price of the flight.
I totally understand the reaction of many that this is unfair, and that the market is not working. The communal reaction is that we must regulate. Perhaps we should, but before we do so we need to understand why airports are raising these charges. I am sorry to say that in many cases it is because this Labour Government are forcing them to do exactly that.
If Government policy increases costs for airports, the airports, as rational commercial organisations, will seek to recover those costs from their consumers, because there is no one else—ultimately, the consumer always pays. This Government have increased employer national insurance contributions, levying more than £900 in additional tax for every single employee on the books. They have raised business rates enormously and have increased environmental targets, which also have significant cash consequences. All of it comes for the consumer.
I will not deal with national insurance contributions because we all know how impactful that change has been, not just to pubs but right across the private sector.
Absolutely. My hon. Friend raises an important point. There is a virtuous circle of economic prosperity to be created through multimodal access to airports. Rail provides an incredibly important piece of that puzzle and it is hoped that increased powers in the Railways Bill, including more control of the provision of passenger services, will allow us to cluster economic focus to the areas that need it most.
My hon. Friend the Member for Mansfield (Steve Yemm) raised issues to do with East Midlands airport. Although the airport uses a proportion of its car parking revenue to fund public transport, cycling and walking access options, including its local electric bus service, that does not negate his important point about fairness. He mentioned the penalty fee being incurred by midnight of the next day if someone fails to pay their fee on time. His point about transparency and consumers being able to know when that fee is approaching is incredibly important.
My hon. Friend also raised an incredibly important point about accessibility. For older residents or people who do not have the same digital literacy as others, navigating smartphone apps and websites to pay that charge can be very onerous indeed. I will certainly be taking that point away.
Part of the issue is that there is a starting principle that does not accept that taking a car to an airport is legitimate on the grounds that people should cycle or take the train, the tram or the bus. If that alternative is available, fine, but for most people the ability to see off loved ones safely and say goodbye is a very important part of the experience.
That point is incredibly well made. Too often, when we discuss aviation policy in this place, we fail to recognise that the people who use our airports may well be making emotional journeys with their loved ones and dropping people off to travel around the world and explore new opportunities. They deserve to know that they can do so in a context where the airport is providing them with a good quality service.
I also want to reflect briefly on the point made by my hon. Friend the Member for Bolton South and Walkden about our airports being a gateway to the United Kingdom. That is an incredibly important and useful lens through which we can view some of these policy considerations.
The Liberal Democrat spokesperson, the hon. Member for West Dorset (Edward Morello), pointed out that travel to Bristol airport is a real challenge from his Dorset constituency. I visited Bristol airport a couple of weeks ago, and I got to see the fantastic local bus service that they are pioneering there. He raised a very good point, building on the point made by my hon. Friend the Member for Oldham West, Chadderton and Royton: if someone has to go a longer distance they will be taking a car and will therefore need to access that drop-off zone. We need to think realistically about the impact on the constituents he represents.
The Conservative spokesperson, the hon. Member for Broadland and Fakenham, raised the principle of fairness that lies behind the mechanism for payments of charges and how, in an opaque system where the rules are not clear, that can cause difficulty for people paying. Where is the fairness in that system? The point is well made. I will leave to him the legalistic determinations about how it relates to certain principles of contract law, but I am happy to explore the issue further with him.
My hon. Friends the Members for Doncaster East and the Isle of Axholme (Lee Pitcher) and for Newcastle-under-Lyme (Adam Jogee) and the hon. Members for Strangford (Jim Shannon) and for West Dorset made important points about accessibility. The CAA enforces the rules on accessibility at airport car parks, including through the Equality Act 2010. Passengers with a disability or reduced mobility are legally entitled to special assistance free of charge when they fly from UK airports. Many airports, including Manchester, offer exemptions from fees for blue badge holders. That is not to say that there is not still enormous work to do to make the system fairer and more transparent. I am always happy for hon. Members across the House to write to me with specific instances of where they feel the framework is not serving the needs of passengers with disabilities. I will happily look into that for them.
Finally, the hon. Members for Reigate (Rebecca Paul), for West Dorset and for Broadland and Fakenham raised taxation. In the autumn Budget, His Majesty’s Treasury announced a redesigned transitional relief scheme worth £1.3 billion in support to airports over 2026-27 and 2028-29. That caps airport bill increases at just over double by 2028-29, compared with the larger increases that there would have been without support. The Labour party’s view is that airports do not exist completely separately from the public services on which their workers depend. People need to travel to airports on the strategic road network, and workers at airports need to be able to access the NHS. It is incredibly important that airports should play their part in contributing to the public finances, but we want to ensure that is done proportionately. I am always happy to have conversations about that with hon. Members.
Gatwick was given as an example, but it is worth bearing in mind that it paid out £600 million in shareholder dividends.
I thank my hon. Friend for that contribution.
In the time remaining, I want to turn to the actual operating model of these parking charges. Most UK airports are privately operated and have the commercial freedom to set their own fees for the services they provide, but the Government expect fees to be set in a way that is both fair and proportionate. Well-designed parking facilities help to manage traffic flows and improve accessibility and local air quality. At the same time, airports must encourage passengers to use public transport options where possible.
Although all that is being considered, I am sure that some hon. Members in the Chamber will be disappointed to hear that the Government do not believe that it is their role to dictate parking prices from Whitehall. Airports must retain the ability to manage their own infrastructure; the Government’s role is to ensure that competition and consumer laws are protected. Ultimately, each airport operator must justify the charges they levy and show that they are fair, transparent and carried out with proper accountability.
We support the continued success of our world-leading aviation sector, but we must do so in a way that delivers a green, more sustainable future. Airports should use their surface access strategies to set clear targets for sustainable travel and offer positive and practical incentives so that people do not drive to airports, but instead to use public transportation. When airports develop those strategies, they must clearly set out their approaches to parking and drop-off charges, and they must use their airport transport forums to plan future transport options in consultation with local people. My hon. Friend the Member for Uxbridge and South Ruislip made that point powerfully.
As my hon. Friend the Member for Bolton South and Walkden said, many airports, including Manchester, offer a range of parking options, including free drop-off zones for passengers and public transport, but it is important that everyone who needs to can access our airports. Some parking options and public transport alternatives may not always work for passengers with accessibility needs. Although airports such as Manchester offer exemptions for blue badge holders, I want to push that further.
More than anything, today’s debate has highlighted the importance of fairness and transparency. It is essential that passengers can easily find information about parking and drop-off options so that they can plan their journeys and make the right, informed choice. We expect airport parking and drop-off charges to be clear and accessible, both online and at the airport itself. Airports must also make it easy for their customers to pay the relevant fee in a timely manner before proceeding to issue penalty charges for failure to do so. I was disappointed to hear Members across the House give examples of where that has not been the case for their constituents. I undertake to remind airports, including Manchester airport, of their obligations.