Flybmi
Nusrat Ghani Excerpts(5 years, 2 months ago)
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Andy McDonald (Middlesbrough) (Lab)(Urgent Question)
To ask the Secretary of State for Transport to make a statement on airline Flybmi going into administration.
The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
On 16 February British Midland Regional Limited, the east midlands-based airline which operates as Flybmi, announced that it had ceased operations from that date and filed for administration. The group has surrendered its licence to operate in the United Kingdom, which means that it is no longer able to operate flights.
There has already been significant speculation about the reasons behind Flybmi’s failure. Ultimately, this was a commercial matter for the airline. Flybmi operated in a very competitive industry and was exposed to wider pressures faced by the global aviation industry, such as increasing fuel prices. It is very disappointing that it has gone into administration, and we know that this will be a very difficult time for those who have lost their jobs as a result. Many of those affected are highly skilled. We are confident that they will find suitable employment opportunities, and we welcome the moves by the sector to offer such opportunities.
The Insolvency Service’s redundancy payments service is working with the administrators of Flybmi to ensure that former employees’ claims from the national insurance fund, which may include redundancy pay, holiday pay, arrears of pay and compensatory notice pay, are assessed as quickly as possible. However, given that the sector is ready to recruit, I hope that new jobs will be found soon.
I also recognise that this is a disruptive and distressing time for passengers, and the Government’s immediate priority is fully focused on supporting those affected. We are in active contact with airports, airlines and other transport providers to ensure that everything possible is being done to help them. We and the Civil Aviation Authority are working closely with the travel industry to ensure that the situation is managed with minimal impact to passengers.
There are enough spaces on other flights for passengers to return home on other airlines, and we welcome the sector’s move to offer rescue fares for affected passengers. For example, Flybmi has codeshares across the Lufthansa group and passengers on these flights will be subject to the EU passenger protection rules. They will be provided with assistance and rerouted to their final destination. Travel insurance and credit card bookings are worth noting here, and most passengers were business travellers so will be covered through their work. In addition, the Civil Aviation Authority is providing detailed information for affected passengers on its website, including how people can claim back money they have spent on tickets.
The Government recognise the importance of maintaining regional connectivity, which is why we fund a public service obligation route from Derry/Londonderry to London, which was recently extended from 1 April 2019 for a further two years, the norm for PSOs. The chief executive of Derry council has the power to transfer the PSO contract to another airline for up to seven months to allow for a new procurement process to be conducted. Subject to due diligence we expect the council to sign contracts and appoint an airline later this week, and we expect services to resume swiftly. Derry City and Strabane Council takes forward that part; it is its responsibility.
All affected regional airports have been contacted, and while they are disappointed, we are confident that this will not cause them significant issues. A number of airlines have already indicated that they will step in to replace routes previously served by Flybmi. For example, Loganair has publicly announced that it will cover routes from Aberdeen, Bristol and Newcastle. Our priority is to protect employees, passengers and local economies. We are fully focused on supporting those affected and remain in close contact with the industry and the CAA to ensure that everything possible is done to assist.
Andy McDonald
It will not have escaped anybody’s attention that the Transport Secretary is sitting on the Treasury Bench yet has not come to this House to make a statement. He seeks to hide behind his Minister; she has been dropped in it. Perhaps he has been dealing with the bombshell dropped by Honda this morning.
Eighteen months ago Monarch Airlines left taxpayers with a bill for more than £60 million. Clearly the Government have failed to learn the lessons from that disaster. In fact, the Transport Secretary has dithered and delayed for nearly a year, allowing Loganair to cherry-pick the profitable parts of Flybmi before putting it into administration. The Government have clearly done nothing to stop a repeat of Greybull’s asset-stripping of Monarch.
Flybmi has been in difficulty for some time, so what plans did the Department for Transport have for an airline’s collapse? Have not the Government left both Flybmi’s passengers and staff high and dry? Why was the airline allowed to sell tickets only hours before administration? Why are the Government not helping people get home this time?
On Thursday last week, the Government agreed to extend the subsidy for Flybmi’s London to Derry route. Was the DfT aware that the airline was about to collapse when it agreed this commitment of public money? What checks did Ministers do on the airline prior to agreeing this? The Government’s aviation Green Paper boasts of growth and connectivity; in reality, Flybmi is the second UK airline to fail within months, while the UK’s direct connectivity has declined.
The Government’s complacency is staggering. Flybmi has said that
“the challenges, particularly those created by Brexit, have proven to be insurmountable”,
and:
“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around Flybmi’s ability to continue flying between destinations in Europe.”
So when will this Government wake up to the undeniable truth that their shambolic handling of Brexit is leading our country into an economic disaster?
Ms Ghani
I have never been a woman who has been “dropped in it”; it is my job and I am disappointed that the shadow Transport Secretary wanted to see a he and not a she at the Dispatch Box, but hopefully I can respond to his questions in the best way I can. I am also a little disappointed that the shadow Front-Bench team are all in their seats today considering the bold decisions their colleagues have taken to leave the Labour party because of a number of issues, including leadership and institutionalised antisemitism. We are talking about disappointment, but we should focus on the passengers.
We were made aware of Flybmi going into administration at the weekend. A number of conversations have been taking place. The Aviation Minister has spoken to the Cabinet Secretary responsible for transport in Scotland.
The Secretary of State has spoken to the Northern Ireland Secretary and to the local MP, the hon. Member for East Londonderry (Mr Campbell). Information is being made available on the Civil Aviation Authority website to alert passengers about how they can get home. We must focus on the passengers who may be struggling to get home, but there are lots of alternative flights and that information is being made available. More than 300 staff have been impacted, but it is interesting to note that Loganair and Ryanair are making jobs available and recruiting heavily. The British Airline Pilots Association is also exploring options for pilots with partner airlines.
The hon. Gentleman noted the business case for Flybmi. It was possible to recognise, looking at its accounts, that it had been struggling for a while, including before Brexit and before the referendum. It is not an easy market for airlines to be in, especially regional and local airlines. He mentioned Brexit as a reason for Flybmi going into administration, but it is important to note that several other smaller airlines in Europe have also gone into administration, including Germania, VLM, Cobalt and Primera, and there are lots of different reasons why this takes place. We cannot always blame Brexit when we do not understand the business case.
The hon. Gentleman mentioned the public service obligation and wanted to put the blame at the door of the Department for Transport. In case I did not make myself clear in my opening statement, Derry and Strabane Council is responsible for maintaining and managing the contract. We of course support the route via the public service obligation because it is a lifeline route. I know that that reply must come as a disappointment to him, but that is where the responsibility lies. Derry and Strabane Council has made it clear to the press and to us that it is very positive that an alternative airline will be in place soon enough. It is important to note that the aviation sector in the UK is thriving and that passenger numbers have gone up by almost 60% compared with the numbers in 2000, but it is a very tricky sector to be in, especially for the small regional players in this very large market. I hope that those responses will not be too disappointing for the hon. Gentleman.
John Redwood (Wokingham) (Con)
Is there any known interest from other aviation companies or entrepreneurs in buying assets and taking over the staff in greater numbers, rather than in just cherry-picking the routes?
Ms Ghani
My right hon. Friend makes an important point. The staff are all highly skilled and very professional, and it is important to note that Loganair has already made it clear that it is keen to recruit. I also believe that Ryanair has set up a stall in some of the regional airports to try to bring some of those professional staff on board. We are very positive that they will be able to secure jobs, although this must be a very distressing time for them, as it must be for the passengers. A number of airlines are showing interest in the routes, and Derry Council has made it clear to us that it has some interested parties lined up to take on the route from Derry airport. It will make that information public as soon as it can.
Kirsty Blackman (Aberdeen North) (SNP)
Our thoughts at this time are with the staff, whose future is uncertain, and with those who have had their travel plans thrown into disarray, who are out of pocket or who are stranded as a result of the collapse of Flybmi. I am pleased that Loganair has announced that it is stepping in to cover the routes from Aberdeen to Bristol, Oslo and Esbjerg from 4 March. At a time when Aberdeen is feeling the impact of the loss of easyJet flights, the news of Flybmi going into administration is deeply worrying, particularly because it explicitly mentioned Brexit uncertainty as one of the reasons for this happening. Recent studies have shown that Aberdeen is set to be the UK city that will be the hardest hit by Brexit. It would be helpful if the Minister told us what the Government are doing to protect slots at Aberdeen and other regional airports after Brexit and what they are doing to ensure that airlines are encouraged to use those slots and that our regional airports have access not only to hub airports but to destinations.
Ms Ghani
The hon. Lady makes some important points, focusing on passengers and ensuring that they can continue their journeys and on the staff involved. One of Flybmi’s issues was that its flights were not always full, but the number of people who could have been impacted has been reduced as result. However, everyone whose journey home or to work has become difficult must be taken care of, and I ask them to pay attention to the CAA website for further information. Flybmi’s business model was just no longer working in a competitive market. Its public accounts show that it was in trouble before the referendum, so putting the blame on Brexit really does not wash. The hon. Lady makes a powerful point about Aberdeen, and we will do what we can to ensure that we support all our regional airports.
Andrew Bridgen (North West Leicestershire) (Con)
While the failure of Flybmi’s business model and the loss of 100 jobs in my constituency is a setback causing obvious distress for employees and disruption for passengers, it comes at a time of considerable growth and development in and around East Midlands airport, with over 7,000 new jobs being created over the next two years. Will the Government do all they can to ensure that Flybmi’s highly skilled employees are returned to employment as soon as possible, just as they did in 2012 when Flybmi’s parent company, British Midland, ceased trading with the loss of 1,100 jobs in my constituency?
Ms Ghani
My hon. Friend is a powerful advocate for his constituency and makes some valid points, particularly about the loss of skilled jobs. We were only made aware that Flybmi was going into administration over the weekend, and it is interesting to note the number of other airlines that have nipped in to see who they can recruit. I am confident that jobs will be found. My hon. Friend refers to passengers. The UK has a healthy aviation sector, and we must not dwell on undermining it. We had 284 million terminal passengers in 2017—an increase of 6% on 2016—so the market is healthy.
Paula Sherriff (Dewsbury) (Lab)
The Government have been consulting on arrangements for airline insolvencies for almost a year, so will the Minister explain how yet another UK airline can fail without the Government taking any action? Can I press the Minister to explain why the airline continued to sell tickets just hours before going into administration?
Ms Ghani
An independent review of airline insolvency by Peter Bucks is due to report, and it will make clear what happens to airlines when difficult decisions are made. There is an interesting point to note about how airlines can continue to sell tickets when they are struggling, which is one of the peculiar things that happens in the sector. If an airline were to stop selling tickets, that would make it clear that it was about to go into administration, so airlines do keep selling tickets quite close to the point at which they are about to go into administration. The Peter Bucks review will no doubt examine that point.
Dr Andrew Murrison (South West Wiltshire) (Con)
I welcome the Minister’s restated commitment to the PSO in relation to Derry and Stansted. Given this latest news, what further assessment is necessary of the long-term viability of Derry airport and of the welcome improvements to the A6 between Londonderry and Dungiven, which will increase connectivity to Belfast International airport? What further support does the Minister anticipate in the light of the Derry City and Strabane regional city deal?
Ms Ghani
It is good that my hon. Friend notes the importance of Derry City and Strabane District Council’s role in procuring and maintaining the contract, and it is interesting to note the council’s positivity about other airlines taking on the route. I noted over the weekend that Ryanair was offering flights for less than £10 for those who wished to travel from Belfast, although that means making another journey. We are obviously committed to supporting our regional airports, to holding the CAA to account so that it monitors what airlines are doing when they are struggling and to examining what we can do to help passengers to continue their journeys across the UK.
Mr Clive Betts (Sheffield South East) (Lab)
It is quite frankly astonishing that the Minister did not mention Brexit in her initial comments, because the company certainly did. Flybmi said that uncertainty around Brexit and the possible costs of needing both UK and EU licences in the event of a no-deal Brexit were factors in its decision to go out of business. Will the Minister now make it clear whether all airlines should be planning for a no-deal scenario and looking at how to get dual licences?
Ms Ghani
The EU has been very clear that the UK aviation industry can continue as it is. We have been having good conversations with the EU on this, and we have tabled a number of statutory instruments and regulations to make sure we can continue flying. I just do not buy the argument that planes will not fly.
Colin Clark (Gordon) (Con)
As the Minister mentioned, Loganair has picked up many of the routes from Aberdeen International and is owned by the same holding company as Flybmi, Airline Investments. Will she join me in encouraging Airline Investments to give regional flights priority at this time? Will she reaffirm her commitment to regional airports? And will she make sure the slots are not reassigned to other routes, so keeping these vital regional routes open?
Tom Brake (Carshalton and Wallington) (LD)
This is clearly very bad news for staff and passengers. I know the Minister does not like mentioning the B-word—Brexit—but the fact is that Flybmi has said that Brexit uncertainty was a factor. Not the total reason but a factor, as it was for Jaguar Land Rover, Ford and, as we will no doubt find out shortly, Honda. Is it not time for the Prime Minister to do two things: one, rule out no deal; and, two, establish a Brexit redundancy fund to support businesses that have been put out of business as a result of Brexit?
Kirstene Hair (Angus) (Con)
It is welcome news that Loganair is taking on some of Flybmi’s routes, but my constituents want assurances on their new nearest airport in Dundee. We do not want to see the airport taking on other routes and losing the vital routes from Dundee down to London.
Ian C. Lucas (Wrexham) (Lab)
Aerospace is one of the most important and successful of our sectors. Although the Minister may be having lots of good conversations with our friends in the European Union, there is no regulatory certainty. Does she think that is a good thing or a bad thing for our aerospace industry?
Mr Speaker
Order. The Minister is answering the question and there is quite a lot of sedentary chuntering on both sides, and no shortage of gesticulation, either. I am sure that Mr Knight will now behave with his usual statesmanlike reserve.
Julian Knight (Solihull) (Con)
Thank you, Mr Speaker. The Minister is clearly deeply concerned about this collapse and the wider issues affecting aviation across Europe. Will she assure the House that she will do everything she can to support our regional airports— Birmingham airport, despite its successes, is running at 35% capacity—because they are so important to our country and our regional economic diversity?
Ms Ghani
My hon. Friend has my assurance, and I would be at fault if I did not mention Birmingham airport, which I grew up very close to and to which we are obviously committed, as he can no doubt tell by our commitment to High Speed 2 stopping at the airport. We are committed to all our regional airports, which is why we have the “Aviation 2050” consultation under way to make sure we do all we can to ensure the sector continues to remain healthy.
Mike Kane (Wythenshawe and Sale East) (Lab)
In the event of a no-deal Brexit, there could be no expansion of airline routes from the UK to the EU. That is what is causing the huge uncertainty for operators in the UK. After two and a half years of negotiation, can the Minister not see the damage being done to the sector?
Ms Ghani
I believe the hon. Gentleman is mistaken, as we are working with the EU to deal with deal and no-deal scenarios: we have published no-deal technical notices; we have tabled a number of statutory instruments, which are progressing well; and the EU has confirmed that it will maintain the connection between the EU and the UK to allow flying to continue. But if he is concerned about a no-deal scenario, he should vote for the Prime Minister’s deal.
John Howell (Henley) (Con)
The collapse of Flybmi is to be very much regretted, but does the Minister accept that connectivity is about more than one airline and that she should continue to establish growth in airlines across the country?
Ms Ghani
Absolutely. Even though the airline sector is a tricky market to be in and it obviously favours larger airlines—for example, it is a little easier for them to buy fuel than it is for smaller airlines—my hon. Friend is right to say that competition is good and we should do what we can to support not only our airports, but our regional airlines.
Jim Shannon (Strangford) (DUP)
My hon. Friend the Member for East Londonderry (Mr Campbell) was in touch with the Minister to seek reassurances about this. Flybmi has said that its decision is predominantly an economic one; it was averaging only 19 people per flight, which is not sustainable for any company or business. The public service obligation air route, the first of its kind in Northern Ireland, has been in place since 2017, and the Minister has referred to it. I am thankful for the assurance that the Government will continue to subsidise the route until 2021. Will she please outline whether provision will be made to expand that commitment for a further two years beyond that to encourage other airlines to take on the contract and the route?
Ms Ghani
The hon. Gentleman makes an important point about the PSO, but it does run for this specific period, up to 2021. He noted that the Secretary of State has spoken to the local MP, the hon. Member for East Londonderry, and made a valuable point about the number of passengers per flight, which would have had an impact on the airline’s business model.
Henry Smith (Crawley) (Con)
Of course Brexit has been blamed for other ills. Will my hon. Friend confirm that in the three years leading up to the Brexit referendum in 2016, Flybmi was losing more than £25 million and that its failure has more to do with fuel costs, European regulation and market forces?
Ms Ghani
My hon. Friend makes a valuable point. If we look at Flybmi’s accounts, we see that they were not healthy for many years, even before the referendum. Smaller airlines across Europe are also struggling, and I mentioned some earlier: VLM in Belgium, Germania, Cobalt and Primera. So this is not a UK thing; it is tricky for small airlines to operate, especially if they are regional, in a global sector.
Kevin Hollinrake (Thirsk and Malton) (Con)
If I was the chief executive of a recently failed business, I would probably blame Brexit, too, but the reality is that Ryanair warned only last month of significant overcapacity in the budget airlines sector. Does my hon. Friend agree that this is far more about competitive markets than it is about Brexit?
Ms Ghani
Absolutely. The reason for Flybmi going into administration is that the business has just reached the end of its road. We have an overcapacity here and the power is with the passengers in the choices they make. Those passengers who are now struggling to get home and in distress must be recognised as well, but that is the market we are in.
Nigel Huddleston (Mid Worcestershire) (Con)
I thank the Minister for her statement and the reassurances she has given those who are directly impacted. Does she agree that the UK aviation industry is actually a success story? We have the third largest aviation sector in the world and we would like that to continue to be the case. Will she therefore assure me that she and her Department are working with the industry to make sure that it is planning effectively for all Brexit scenarios? Perhaps the Opposition would like to help out on this by reducing uncertainty by voting for the deal.
Ms Ghani
My hon. Friend makes a valuable point. People who are nervous about uncertainty need to vote for certainty, which would be the Prime Minister’s deal. We should not undermine the UK aviation sector. It is incredibly healthy, even though there are a number of challenges, especially in respect of how passenger numbers are going up. Interestingly, there is far more capacity than there are passengers, so shopping around for a good deal is important. What has come out of Flybmi going into administration over the weekend is that we should remember to make sure we are securing our tickets in a way that means they are insured, so that we can get compensation or refunds.
Mr Philip Hollobone (Kettering) (Con)
Flybmi’s 50-seater planes carried, on average, only 18 passengers per flight. No airline could carry on on that basis. Although Flybmi’s demise is regrettable and very sad, does the Minister agree that it is important to get it into context? East Midlands airport is a huge success story. It has an expansion programme, and passenger and cargo growth is 8% a year. The airport is located in north-west Leicestershire, which has the fastest economic growth of anywhere outside London and the south-east.
Ms Ghani
My hon. Friend makes a powerful point about his part of the world. He is absolutely right; East Midlands airport is thriving, competitive and nimble when it comes to the changes that passengers require and the kinds of services that they want. Even though it is regrettable that Flybmi went into administration over the weekend, it is important to note that the UK has a very healthy aviation sector.
Second Additional Provision to the High Speed Rail (West Midlands – Crewe) Bill
Nusrat Ghani Excerpts(5 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I would like to inform the House about the introduction of a second additional provision to the High Speed Rail (West Midlands - Crewe) Bill, which is currently before a Select Committee.
As part of this Government’s industrial strategy we are investing in High Speed 2, a transformational infrastructure project that will improve people’s journeys, create jobs, generate economic growth and help to rebalance our country’s economy. HS2 is more than a railway and the project’s vision is to be a catalyst for economic growth. It has cross-party support and support from councils, local enterprise partnerships, metro Mayors and businesses who can see the transformational potential.
HS2 is making progress and the benefits are already being seen in towns and cities in advance of HS2 services. Around 2,000 businesses have been awarded HS2 contracts and over 7,000 jobs have been supported, a figure that will increase to around 30,000 at peak.
The additional provision proposes a number of changes to the powers in the Bill for the Select Committee’s consideration. These changes have arisen as a result of requests from petitioners, directions from the Select Committee currently considering the Bill, and further design development, principally in relation to utility works. Those directly and specially affected by these changes may petition against them, and once any petitioners have been heard, the Committee will decide whether the amendments to the Bill should be made. The main changes in the additional provision are as follows:
The lowering of the viaduct at Kings Bromley which reduces environmental effects such as visual impact;
a revised and more simple Handsacre junction layout, where phase one connects to the west coast main line;
a new traction power connection, requiring over 7 km of high voltage electricity lines, from the HS2 line at Newlands Lane to the east of the route. This change ensures the necessary resilience and redundancy required for traction power on a high-speed railway;
temporary and permanent power supply routes to the Whitmore and Madeley tunnels, to support the operation of the tunnel boring machines during construction and later, the operation of the tunnels;
a southward extension of the southern end of the tunnel at Whitmore, to avoid the need for complex surface works where the A53 crosses the route; and
works at and around Crewe station including the extension of platform 5 to accommodate 400-metre HS2 trains. These changes support the realisation of the Crewe hub vision.
The additional provision also includes works and powers related to utilities following detailed discussion with utility companies. Other changes relate to highway safety and capacity improvements.
All of these changes require additional land to be acquired, and/or works to be carried out. In some cases land now affected is at some distance from the line of route. Full details are shown in the plans and sections deposited alongside the additional provision. Affected landowners will receive notification this week, including information on how to petition against the changes, should they decide to do so.
The following amendments are also included in this additional provision:
An insertion to allow easements over land to be for the benefit of a third party (i.e. utility companies) rather than for the benefit of the Secretary of State;
dis-application of some sections of the Building Act 1984 in relation to demolitions which are already otherwise authorised by the Bill; and
increasing the controls on the nominated undertaker in relation to low-volume lorry movements.
I am also publishing an environmental statement setting out the significant effects and mitigation from the changes in the additional provision, alongside a supplementary environmental statement reporting new environmental information relating to the scheme. In accordance with Standing Orders, there is a public consultation on these documents which will run until 29 March 2019. The documents will be put in the Public Bill Office of the House, and will also be made available in locations open to the public in all local authorities and parishes affected by the changes.
In October 2018, I committed to updating the House regularly on the progress of HS2. I intend to make further statements to this House to update colleagues on HS2’s progress during the course of 2019.
[HCWS1324]
Taxi and Private Hire Vehicle Licensing
Nusrat Ghani Excerpts(5 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I am today announcing to the House the launching of a consultation on statutory guidance to be issued to taxi and private hire vehicle (PHV) licensing authorities and that the Government have issued their response to the report of the task and finish group on taxi and private hire vehicle licensing.
The draft statutory guidance proposes a range of robust measures to protect taxi and PHV passengers, particularly those most vulnerable. Government and licensing authorities must work together to ensure that, above all else, the taxi and PHV services the public use are safe. The consultation on this guidance will run until 22 April 2019.
The taxi and PHV trade has experienced significant and rapid changes in recent years which have brought with them benefits but have exacerbated concerns over the existing structure of the industry and the environment in which it operates. In particular, many of these changes have highlighted inconsistencies in the licensing standards, and in the rigour with which these standards are applied by some licensing authorities.
The recommendations proposed in the draft statutory guidance are a result of extensive consultation, and in particular learning from the best practice of exemplary licensing authorities. Consulting on statutory guidance is an important first step to reforming the way the taxi and PHV sector is regulated.
In addition to the statutory guidance consultation, the Government are today publishing their response to the report of the chair of the task and finish group. The Government have set out their plans to introduce legislation and bring forward the urgent reforms necessary. I would like to take this opportunity to thank the Chair, Professor Mohammed Abdel-Haq, for his report, and the members of the group for their dedication in considering the issues facing the trade and their potential remedies.
The Government will, when time allows, bring forward legislation to introduce national minimum standards for taxi and PHV licensing, reinforcing the consistently high standards that the statutory guidance will bring to the sector. To ensure that drivers are under the same level of scrutiny when operating away from their licensing area we will legislate to enable enforcement and compliance checks to be conducted by any licensing officer against any vehicle regardless of where they have been licensed. Where drivers or vehicles fail to meet the national minimum standards, they will be able to take appropriate action to protect the public. Underpinning these measures will be the introduction of a national licensing database to assist the sharing of relevant information between licensing authorities and other bodies necessary to ensure that all those in the trade are “fit and proper” and warrant the trust that is placed in them by the public. This database will build on the work of the Local Government Association and the National Anti-Fraud Network in establishing the national register of revocation and refusals.
Taxis and PHVs provide a vital community service which is used by many people; helping them get to the shops, see their friends, or go to work or school. We will work with the trade, drivers and regulators as well as passenger groups to meet the challenges the sector is expected to face in the future and ensure that change is not at the expense of a safe and well-functioning market. This work is already under way through the future of mobility grand challenge and the Law Commission’s consideration on enabling autonomous vehicles. I would encourage all to engage on these issues and help shape a successful sector that all can be proud of.
[HCWS1323]
HS2 Construction Partner: Southern Stations
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I would like to update the House on the progress of High Speed 2.
As part of this Government’s industrial strategy we are investing in High Speed 2, a transformational infrastructure project that will improve people’s journeys, create jobs, generate economic growth and help to rebalance our country’s economy. HS2 is more than a railway and the project’s vision is to be a catalyst for economic growth. It has cross-party support and support from councils, LEPs, metro Mayors and businesses who can see the transformational potential.
HS2 is making progress and the benefits are already being seen, notably in the investment and job creation in the west midlands in advance of HS2 services, and around 7,000 jobs have been supported so far, rising to around 30,000 at peak.
Parliament has approved the powers to proceed with phase 1 of the railway, between London and the west midlands, and we are making significant progress. Early works are well under way: HS2 Ltd has revealed the designs for new stations in Old Oak Common, Birmingham Interchange and Birmingham Curzon Street; enabling works on the route are progressing; decommissioning and preparatory works are taking place.
As has been seen with Stratford station in east London, railway stations have enormous power to transform their local surroundings. It is why I approved the appointment of a master development partner (Lendlease) on 22 February 2018 to assist HS2 Ltd in delivering the new Euston station development. This will not only provide unparalleled levels of accessibility, ease and convenience for our passengers, but ensure work with local communities to help unlock wider regeneration, new jobs, homes and opportunities.
Last year, the tender shortlist for a construction partner for the two southern stations was released. In a clear signal of how work is progressing, this morning I am pleased to announce the intention to award these important positions to a joint venture between Mace Ltd and Dragados S.A. for Euston and a joint venture between Balfour Beatty Group Ltd, VINCI Construction UK Ltd, VINCI Construction Grands Projets SAS and SYSTRA Ltd for Old Oak Common. They will bring their global construction management expertise to these vitally important pieces of national infrastructure.
This demonstrates how progress is continuing at pace in order to deliver stations that will be embraced by their local communities, drive economic growth and improve rail journeys for passengers, while at the same time delivering this phase of the project to schedule and cost.
The progress we are making with HS2 is clear evidence that the Government are delivering the infrastructure our country needs to build a stronger, fairer, more prosperous Britain.
[HCWS1300]
Lighthouses: Light Dues 2019-2020
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
A strong and growing maritime industry is vital to the economy of the United Kingdom and it is critical that we treasure and protect this vital artery if we are to remain a world-leading maritime centre.
The work of the general lighthouse authorities, which provide and maintain marine aids to navigation and respond to new wrecks and navigation dangers in some of the busiest waters in the world, is crucial to underpinning that vision while maintaining our vigorous safety record and continuously improving standards of safety.
Reductions in the three general lighthouse authorities’ running costs have enabled the UK to reduce light dues for four successive years. For 2019-20 intend to freeze light dues rates at 37½ pence per net registered tonne. This will mean that light dues will have fallen by 28% in real terms since 2010.
Light dues rates will continue to be reviewed on an annual basis to ensure that the general lighthouse authorities are challenged to provide an effective and efficient service which offers value for money to light dues payers.
[HCWS1296]
Draft Maritime Transport Access to Trade and Cabotage (Revocation) (EU Exit) Regulations 2019
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Maritime Transport Access to Trade and Cabotage (Revocation) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Walker, in this oasis of calm on this ordinary Tuesday afternoon. The Department for Transport has conducted intensive work to prepare for the UK’s departure from the EU, which includes ensuring that our statute book continues to function. The Department plans to lay about 65 statutory instruments before exit day; I believe that 44 of those have already been laid.
The regulations before the Committee revoke EU legislation that would otherwise be retained in UK law under the European Union (Withdrawal) Act 2018. For the most part, that legislation would be redundant after we leave the EU; it would have no effect. For example, Council regulation 4058/86 is about anti-competitive measures taken by non-EU countries. It allows member states to ask the European Commission to co-ordinate retaliatory action against such countries. That remedy will not be available to the UK when we are no longer a member state.
EU regulation 3577/92 gives member states rights to provide maritime cabotage with another member state. For the information of hon. Members, I should say that “cabotage” in this context is essentially the operation of ships between two UK ports, or one-port operations to and from an offshore site. If we do not revoke that regulation, it will be retained in UK law, which would mean that member states would continue to have cabotage rights in UK waters but UK vessels would no longer have such rights across EU waters.
It is important to say that the UK has no intention of restricting cabotage by EU vessels in UK waters. By removing the statutory rights provided in the regulation, we are simply putting EU vessels on the same footing as vessels from other countries: that is, they will continue to be able to operate cabotage without any express statutory right.
In preparing this legislation, the Department has discussed the scale of activity with the UK Chamber of Shipping. In practice, relatively little cabotage is undertaken by UK-flagged vessels in EU waters. Furthermore, a number of EU countries have an open approach to cabotage, as do we. We expect there to be very little change in the provision of cabotage by UK operators in EU waters after the UK leaves the EU, and these regulations do not change that position.
There is also no reason to believe that the regulations will have any effect on service provision by EU operators in UK waters. As I mentioned, the UK has no intention of restricting cabotage: we believe that an open approach promotes competition, leading to better and more efficient services. However, the UK does not intend for member state cabotage rights to continue to be expressly guaranteed in UK legislation.
The changes made by these regulations are appropriate to ensure that on exit day, the UK statute book does not contain regulations that are redundant. The regulations are fully supported by the Government, and I commend them to the Committee.
Ms Ghani
I am grateful to the hon. Members for Kingston upon Hull East and for West Dunbartonshire for their contributions, which underline the importance of the maritime sector to the UK’s trading capacity and success. It is important that people understand that, despite revoking EU legislation, the UK will still operate a liberal cabotage regime. That means shipping companies registered in EU member states will still be able to operate in the UK as they do now, so very little will change.
Competition was mentioned. After exiting the EU, the UK will have a robust competition regime, overseen by the Competition and Markets Authority, and will be able to take trade remedies action in its own right under the aegis of the World Trade Organisation. If hon. Members have concerns about what may or may not happen in a no-deal scenario—obviously, this instrument is intended to ensure that we have everything in place for such a scenario—I suggest that they support the Prime Minister’s deal.
The hon. Member for Kingston upon Hull East mentioned consultation with unions. We undertook extensive consultation, not only with the UK Chamber of Shipping but with the Scottish and Welsh Governments. We can discuss many issues, but we need to ensure that, in a no-deal scenario, we continue doing business as we do today. That is what this statutory instrument is about.
Karl Turner
On consultation, have there been any discussions with the National Union of Rail, Maritime and Transport Workers, which represents many crew members on vessels?
Ms Ghani
I thank the hon. Gentleman for that question. We are not only blessed with the International Maritime Organisation, across the water, but the maritime sector is a global sector and one that we take very seriously. Only last week, we launched “Maritime 2050”, working with all stakeholders. We communicate with as many agencies as we can. We want to do what we can to ensure that the maritime sector in the UK continues to be as robust as it is.
I turn to cabotage. The draft regulations will make no practical difference to cabotage arrangements in UK waters. Operators from EU or non-EU countries will be able to continue to provide cabotage services as they do now. However, EU operators will no longer have guaranteed rights, which operators from other countries similarly do not have in UK waters. Such rights would not be reciprocated for UK operators in EU waters, so it is reasonable for us to revoke them.
Karl Turner
I am afraid the Minister did not answer my question. The question is, what discussions has the Minister had with the Rail, Maritime and Transport union, which happens to be the biggest trade union in the sector, representing seafarers in this country? It seems incredible to me that the Government have not had any discussions with the RMT union. Will she be clear about that quite simple point?
Ms Ghani
What is incredible is that the RMT did not update the hon. Gentleman to say that we did indeed speak to it recently. The union made it very clear that this piece of legislation does not adversely affect its practical interests in any way. Perhaps that is the incredible piece of information that he can take back to the RMT.
The changes made in the draft regulations are appropriate. They will remove from the UK statute book regulations that would otherwise be retained after EU withdrawal. They are fully supported by the Government, and I commend them to the Committee.
Maritime Strategy
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I am today announcing the publication of “Maritime 2050: Navigating the Future”, the Government’s landmark strategy setting out our vision and ambitions for the future of the British maritime sector.
Our nation depends on the wide range of benefits the maritime sector delivers. It contributes over £14 billion a year to the UK economy and directly supports an estimated 186,000 jobs. Around 95% of British imports and exports are moved by sea. The leisure and marine sectors are vital to our enjoyment of the seas. Our maritime clusters around the UK showcase the diversity of our regional economies, from professional services in London to ship management and educational excellence in Scotland.
We rightly take pride in our maritime past. Maritime 2050 is about looking forward, anticipating the challenges and opportunities ahead and recognising the UK’s strengths so we are well placed to capitalise on them. Maritime 2050 looks at these across seven themes and under each makes short, medium and long-term recommendations: UK competitive advantage; people; environment; technology; infrastructure; trade and security and resilience. It highlights multi-billion pound commercial investment in maritime infrastructure at ports and beyond; our unwavering commitment to safety and security; and our reputation for innovation. We pave the way on regulatory frameworks and technology to facilitate smart shipping and autonomy, and lead the way in clean maritime growth. But no matter how far advances in ships and technology take us, it sets out how the people graduating from our maritime training and academic institutions will reflect the world around us and continue to be sought after across the globe for their skills.
As the global maritime sector adapts to challenges such as climate change, rapid technological advances and security concerns, Maritime 2050 sets a series of strategic ambitions around which Government and the sector will focus their efforts, and core values which we will be guided by.
The partnership between Government and the maritime sector has been vital to the development of this strategy. It began in March 2018 with a call for evidence, seeking to reach all branches of the sector, complemented by workshops around the UK to capture the views from across our maritime clusters, and interviews with leaders in industry and academia. Maritime 2050 has also benefited from the advice and scrutiny of an independent panel of 13 internationally respected academics, industry leaders, maritime business services providers and promotional bodies. As a result, Maritime 2050 reflects the depth and breadth of the UK’s rich maritime sector.
A copy of Maritime 2050 has been placed in the Library of both Houses and is available on gov.uk, together with the trade and technology route maps setting out in greater detail the steps needed to achieve the UK’s strategic maritime ambitions.
[HCWS1270]
Draft Ship Recycling (Facilities and Requirements for Hazardous Materials on Ships) (Amendment) (EU Exit) Regulations 2019
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Ship Recycling (Facilities and Requirements for Hazardous Materials on Ships) (Amendment) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Robertson. The draft regulations are made under the European Union (Withdrawal) Act 2018, which retains EU-derived legislation in UK law. Section 8 of the Act makes provision for correcting deficiencies in EU-derived legislation that may arise as a result of the UK leaving the European Union.
Ensuring the safe and environmentally sound dismantling and recycling of ships at the end of their operational life has been a concern for a number of years. Many ships are currently dismantled on beaches in Asia, with little regard for human safety or environmental protection. EU Regulation 1257/2013 transposed into EU law key parts of the Hong Kong convention on recycling ships. The main provisions of the regulation have applied since 31 December 2018. They include requirements that EU-flagged ships be recycled at an approved ship recycling facility and that new EU-flagged ships carry a valid inventory of hazardous materials. The provisions apply to ship recycling facilities in the EU and to EU-flagged ships above 500 gross tonnes.
The draft regulations will ensure that the legal framework for ship recycling remains operable when the UK leaves the EU on 29 March 2019, by making amendments to the EU ship recycling regulation and the Ship Recycling (Requirements in relation to Hazardous Materials on Ships) (Amendment etc.) Regulations 2018. They will also amend legislation on waste management and ship recycling facilities to address a number of deficiencies arising from EU exit that would hinder the operation of the UK ship recycling regime.
The EU regulation establishes a European list of approved recycling facilities that must be used for all EU-flagged ships, including UK ships, when they need to be dismantled and recycled. After we leave the EU, it would not be appropriate for the EU to decide where UK-flagged ships can be recycled, so the draft regulations provide for a UK list that will replace the European list for UK-flagged ships. The Secretary of State will have the power to add or remove facilities. However, the UK list will include all recycling facilities on the European list.
Ships typically contain quantities of hazardous materials. The EU ship recycling regulation requires new ships to carry a list of such materials from the beginning of this year, and existing ships to carry such a list from 31 December 2020. Since the 2018 Act will retain in UK law only EU measures that are in force when we leave the EU, it will not retain the requirement under the EU regulation for existing ships to carry a valid inventory of hazardous materials, but the Government will seek to implement that requirement when the opportunity arises. Ships will still need an inventory before they can obtain a “ready for recycling” certificate, which is required when a ship is sent for recycling.
The draft regulations apply to waste management, which is a transferred matter under the Northern Ireland Act 1998. The Government are committed to restoring devolution in Northern Ireland, but time is short. We have therefore, in consultation with Northern Ireland Departments, included provisions in the draft regulations that relate to waste management legislation that applies in Northern Ireland.
The changes made by the draft regulations will ensure that environmental law continues to function after the UK’s withdrawal from the European Union. They will enable the UK to continue to comply with its international obligations, as established by the International Maritime Organisation, and maintain the highest environmental and safety standards. They are fully supported by the Government, and I commend them to the Committee.
Ms Ghani
I thank hon. Members for giving their time and consideration so early this morning. The regulations will ensure that we continue to combat environmental pollution and enforce safety standards in the maritime sector after we leave the European Union. They make changes only to ensure the functionality of EU retained law on the UK statute book after exit day. I am pleased that we seem to have cross-party support for this statutory instrument.
The hon. Member for Kingston upon Hull East asked about the UK ship recycling list. I want to remove any concern by confirming that the UK list will be the same as the European one when we leave the EU on 29 March. The two lists may diverge over time as the Secretary of State rather than the EU will decide which facilities can be added to or removed from the UK list. In practice, however, we expect the two lists to remain closely aligned. I shall of course drop the hon. Gentleman a note on all the points he raised.
I am pleased that we can agree that protecting the environment from all kinds of shipping pollution and ensuring that ship recycling is undertaken in a responsible manner is vital to broader Government commitments to environmental standards and shipping safety. I hope that the Committee will agree that the SI is essential to ensure that legislation on environmental protection and ship recycling will continue to work effectively in the UK from day one after exit.
Question put and agreed to.
British Bioethanol Industry
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
It is a pleasure to serve under your chairmanship, Mr Gapes, and I must get it out into the open that I am not the Minister responsible for roads, and neither have I been promoted to that position. Unfortunately, the Minister of State, Department for Transport, (Jesse Norman) is taking part in a debate on a statutory instrument, and I am doing my best to step in. I know it was a bit of a disappointment to one of our colleagues to find that I am not a he but a she.
I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing this debate. Low-carbon fuels such as bioethanol play, and will continue to play, an important role in meeting the UK’s carbon budgets. During this debate, and in parliamentary questions, Members with constituencies in and around Hull and Teesside have made clear the wider economic benefits of UK bioethanol production, and the environmental benefits of deploying bioethanol as a transport fuel. Some may consider that to be a niche matter, but the contributions we have heard today show that it is a nationwide issue.
I had not realised that there was a Teesside collective, but now I see how powerful that force is. I thank the hon. Members for Stockton North (Alex Cunningham), for Sedgefield (Phil Wilson), for Kingston upon Hull West and Hessle (Emma Hardy) and for Redcar (Anna Turley), and my hon. Friend the Member for Cleethorpes (Martin Vickers) for their passionate contributions and representations on behalf of the bioethanol industry and their constituencies. I believe that I will cover many of the issues that they raised, but if I do not address them all, the Minister of State will no doubt respond in writing.
The Government understand the potential benefits of the bioethanol sector, and we stressed the benefits of E10 when advancing draft legislation last year—legislation that doubled targets for the supply of renewable fuel between 2018 and 2020. That provided space for a roll-out of E10 should suppliers choose to deploy it. Concerns about not having a clear legal mandate for E10 are well understood by the Department. In September last year, we concluded a call for evidence on whether and how E10 might be introduced in the UK, and if introduced, how it could be done in a way that addresses the concerns of retailers, fuel suppliers and motorists. The Department has now analysed the responses to that consultation and hopes to publish the Government’s response soon. We are continuing to work with the bioethanol industry. Indeed, I understand that the Minister of State hopes soon to meet the hon. Member for Scunthorpe and representatives from the bioethanol industry, and I believe that a date for that has been set in the diary.
Dr Paul Williams
The Minister said that the Government hope to publish a response to the consultation soon, but that is not particularly helpful for people working in the industry who have a mothballed plant and are waiting for a Government decision on the future of their industry. Is there any possibility of the Minister being a little more specific about what “soon” might mean?
Ms Ghani
The hon. Gentleman spoke passionately about the Ensus plant in Wilton in his constituency. I cannot make that commitment here and now, but a meeting is due to take place—it is in the diary—and there will be further clarification after that. As has been said, that meeting will be open to all those who wish to attend. I cannot give that confirmation right now, but we are committed to working with the sector to ensure that the plants are open and running as soon as they can be.
Plant closures were discussed throughout the debate. The hon. Member for Kingston upon Hull West and Hessle made a very passionate contribution, but I must take her up on one point. I know that she wants this debate to be as respectful as possible, because we do not want to reflect what is happening in the main Chamber on all occasions. She mentioned a Government promise, but I would argue that it was never a promise—we must be clear if something is a Government intention and how that should be perceived, as it is very different from the word “promise”. We must ensure that we are honest in our contributions.
Emma Hardy
The words I was using were those of the industry, so if the Minister has an issue with a promise being made by the Government, perhaps she should take that up with the industries involved. There is no way that any industry would invest many millions of pounds on a mere suggestion that the Government might be interested in it in future, and if they had not been led to believe that it was indeed a Government promise.
Ms Ghani
An interpretation of how a Government may respond and a promise are two very different things. The Department is working closely with the sector and will do what it can to support it. We must ensure that we understand the difference between what is and is not a promise.
We heard passionate contributions about the bioethanol sector and businesses in Members’ constituencies, and the halting of bioethanol production at Vivergo Fuels and Ensus plants last year is saddening and regrettable for all those impacted. I understand the frustration of those calling on the Government to act quickly to mandate the introduction of E10.
Dr Paul Williams
Does the Minister accept that the sole reason for the closure of the Vivergo plant and the halting of production at Ensus was the Government’s procrastination?
Ms Ghani
That is an interesting way of responding to how the business environment is dealing with global issues beyond what the Government may or may not have intended to do, so I do not accept that point.
It is clear that UK producers of bioethanol from wheat have faced challenging market conditions, due in part to high wheat prices following a hot summer, and a low bioethanol price—that may in some way answer the hon. Gentleman’s question. However, it is by no means clear that an E10 mandate would address all the challenges that the UK bioethanol industry has faced. It is also clear that the introduction of E10 is not without barriers, including the need to take into account the concerns of a significant number of owners of vehicles that are not compatible with E10—that point was raised earlier in the debate. To be successful, it is vital that any introduction of E10 is backed by fuel suppliers and consumers alike.
Since its inception, the policy on biofuels in the UK has been complex and not without controversy. Immediately after the renewable transport fuel obligation scheme—RTFO—was set in law in 2007, the Gallagher review into the indirect effects of biofuel production was published. It became clear that to maintain faith in the emissions reductions achieved and to retain consumer buy-in, we would have to address the negative indirect effects of certain biofuels. To reward fuels that may perform worse than the fossil fuels they replace would have undermined the rationale of a scheme designed to reduce greenhouse gas emissions.
It was with those challenges in mind that the Department jointly established a transport energy taskforce with the Low Carbon Vehicle Partnership, to consider how biofuels can contribute to meeting our climate change commitments in the context of measures introduced to address the negative indirect impacts of some biofuels.
Alex Cunningham
The Minister said a few minutes ago that some cars might not be compatible with E10 or even E5. Of course that is the case, but there are always alternatives at the petrol stations pump: diesel, fuel with bioethanol included or ordinary unleaded petrol. I cannot see that as the barrier that she described.
Sir Greg Knight
I think the point made by the hon. Member for Stockton North is a good one: a choice of fuels available at the pumps needs to remain, and those fuels need to be properly labelled so that owners of cars not compatible with E10 are made aware.
Ms Ghani
Indeed; that is why the consultation took place. As the hon. Gentleman knows, he can take up those issues further with the Minister of State, which is why we need to ensure that when we respond, we take into account all the issues raised in this debate.
The taskforce report to Government noted not only the potential benefits of E10 in helping the UK to meet our renewable energy targets, but the barriers and risks associated with its introduction, not least in respect of ensuring consumer acceptance. It is clear that UK suppliers, including of bioethanol, have made great progress in ensuring that renewable fuel delivers reductions in greenhouse gas emissions.
Since the RTFO was introduced in 2008, savings in greenhouse gas emissions have increased significantly from 46% to 70% in 2014-15. Latest data suggest that current biofuels provide an average 71% reduction in greenhouse gas emissions even when land use change impacts are included, but it has always been essential to evolve the policy on biofuel. That way, we maintain the integrity of the schemes that promote its use, such as the RTFO.
Following the work of the taskforce and building on the success of the RTFO, in September 2017, the Government set out a 15-year strategy for renewable transport fuels. The strategy established an investment platform to develop sustainable advanced fuels for automotive, aviation and road freight. I am proud to say that, as part of our strategy for renewable fuels, in March 2018, regulations were agreed that make the UK the first to set targets for renewables in transport beyond 2020, all the way to 2032; and the first and only country to set development fuel targets to drive a market for advanced low carbon fuels. For the first time, we have made aviation fuels eligible for reward under the RTFO. Our 15-year strategy for renewable transport fuels is designed to maximise the industrial opportunities to be gained for the UK while maintaining public confidence in the value of renewable fuels.
The hon. Member for Scunthorpe has previously shown support for increased biofuel supply targets in the 2018 regulations. He has also been clear in calling for a mandated introduction of E10. As I said, I am not in a position here and now to update colleagues on when we will publish a response to last year’s consultation on whether and how to introduce E10, but E10 is our main focus in the biofuels policy area. We are working hard to publish the Government response as soon as possible.
Dr Paul Williams
I understand that the Minister is not in a position today to tell us when the response will be published, but if I were the owner of a mothballed plant, probably trying to persuade my bank and investors, I would need some kind of certainty. Would the Minister pledge to write to us in the next week to give us a date on which the consultation response will be published, just to help the businesses that need certainty to make future decisions?
Ms Ghani
The hon. Gentleman once again champions the employers in his constituency very well. As I said, I do not believe that the time it has taken to ensure we make the right decision on E10 via the consultation is the only reason those businesses are in a challenging position. As I mentioned, a meeting is due to take place; that meeting will be the best time and place for a letter to be forwarded. The hon. Gentleman will be in the best place to challenge the Minister of State and get the responses he needs.
Anna Turley
I am deeply frustrated that the consultation closed such a substantially long time ago. Can the Minister identify the barriers in the civil service and the ministerial process to getting a decision? In the light of today’s debate, was there not some kind of briefing, impetus or a rocket put under this urgent issue? Will the Minister confirm that, following this debate, a rocket is under it?
Ms Ghani
The Teesside massive, as I will call them, have no doubt put this issue back firmly on the Minister’s agenda, although no doubt it was already there. We always want to ensure that any consultation we undertake provides a good response to all involved—not just the sector providing the fuel but those putting the infrastructure in place and owners of classic or older cars.
There was mention of the impact on international roll-out. I was reflecting that the roll-outs in Europe have been quite mixed: in some places, they have done well and in others they have not fared as well as one might have assumed. We have to ensure that we get this right. I am hearing, and no doubt the Department is too, frustration at getting a response. That is why a meeting was agreed.
Emma Hardy
I am sure the Minister understands how frustrated everyone feels, including businesses. To go back to the central point of my speech, does the Minister not acknowledge that trust in the Government will be undermined, potentially undermining investment in areas such as ours, where it is desperately needed?
Ms Ghani
When Government make rash decisions that are not fully thought through, when a sector is involved, that further undermines trust in Government. That is why it is our responsibility to ensure that we get the right decision. Unfortunately, on occasion, that can take time. The hon. Lady’s frustration has no doubt been noted. It is absolutely right that if and when we roll out E10, we do so in a successful way, not least for EU bioethanol suppliers.
Given the barriers to introduction, it is right that we have taken time to learn from the experiences, good and bad, of the roll-out of E10 in other countries. If a decision were taken to mandate E10 further to last year’s call for evidence, we would also need to test the costs and benefits against firm proposals, ensuring that all those with an interest, including fuel retailers and motorists in particular, have an opportunity to submit evidence. If E10 is rolled out in future, the Government remain committed to ensuring that E5 remains available and that any introduction of E10 is well managed, with information on compatibility made available to vehicle owners.
Anna Turley
I appreciate the Minister giving way—she is being extremely generous with her time. I want to pick up the point about costs. We know that the cost of ethanol is lower than oil; unfortunately, bioethanol is currently more highly taxed than petrol, which makes E10 fuels about 1p more expensive—about £20 per year for the average motorist. Tax incentives are extremely important to incentivise behaviour. Are the Government looking at tax incentives to encourage the roll-out?
Ms Ghani
The Government will be looking at all issues to ensure that, if a roll-out is suggested, it is an option favourable to those pulling into petrol stations. That is why it is interesting to learn what has happened in Europe. In France, I believe, the roll-out was more underwhelming than had been expected and in Germany it did not deliver the impacts that had been hoped, so it is important that we look at this closely.
Dr Paul Williams
Is the Government’s view that they need to mandate the roll-out or that the industry should lead the roll-out itself, without a Government mandate?
Ms Ghani
The hon. Gentleman is trying to tease out a statement from me, when he knows that he has to wait for the consultation to get the response that he wants. I thank him for his tricky intervention, but he will have to wait for the consultation response to get the answer.
The Government agree that the aim must be to reduce emissions and that low carbon fuels must play a part. The regulations made last year introduced a greenhouse gas reduction obligation on suppliers and incentives for the development of fuels capable of delivering higher greenhouse gas emissions reductions. These allow us to reward low carbon fuels because of the emissions reductions they deliver. We have also made £20 million of match capital funding available under the future fuels for freight and flight competition. In the wider context, the Government have recently published two major strategies focused on combating climate change and improving the UK’s air quality. Our Road to Zero strategy sets out a clear pathway to zero emissions vehicles by 2050, and this week we have published our clean air strategy. The pathway is not just about driver behaviour and electrification. Low-carbon fuels will continue to play a vital role in reducing greenhouse gas emissions from the vehicle fleet.
The renewable transport fuel obligation, as amended last year, is expected to save nearly 85 million tonnes of CO2 over the 15-year period from 2018, which represents around a third of transport’s projected contribution to UK carbon budget savings during the 2020s. In achieving those savings there is an opportunity to increase the amount of bioethanol in petrol, from 5% today up to 10%.
Alex Cunningham
The Under-Secretary is doing a grand job stonewalling on behalf of the Minister of State. If there is one message that we would ask to be taken back, it is that we desperately need a date and we need that certainty. Will she commit to go to the Minister and say, “Look, these guys are going to bash your door down if you do not actually make a decision and make it soon”?
Ms Ghani
That meeting is in place with the Teesside massive, as I am referencing them now. I completely understand the frustration about not having a date, but we need to make sure that we get this absolutely right. A meeting is a place and that can be raised directly with the Minister.
It is not agreed that there is conclusive evidence to show that switching from E5 to E10 will have a significant impact on air quality but I would like to assure Members that, as with all policy on low-carbon fuels, we will continue to assess our policies and support against the ambitious targets we have set to improve air quality and reduce carbon emissions.
If we were to mandate E10, it could give suppliers an opportunity to meet those carbon budget targets in a more cost-effective way. That is why the Department has consistently made clear its desire to work with industry in considering an E10 roll-out. The Government are mindful that rolling out E10 is a huge change to the UK petrol market. If such a roll-out were not managed well, it could impact on motorists across the UK. It is important that we prioritise consumer acceptance and ensure the vehicle fleet, consumers and retailers are ready. As was raised throughout the debate, that is a big responsibility for Government to undertake. We need to make sure that everybody is ready and any decision we make is not rushed.
I would like to thank everyone who contributed to the debate for taking the time to further inform our thinking on E10. I must not forget the intervention made by the hon. Member for Strangford (Jim Shannon).
Ms Ghani
Forgive me. I know that the hon. Gentleman has spoken very positively about the bioponics of E10. The bioponics will be accounted for in our response to the consultation when it is published.
I thank everyone for contributing to the debate. The use of biofuels is and will remain a challenging policy area. However, this must never stop us from finding the right balance between maximising the contribution that low-carbon fuels can make to reducing greenhouse gas emissions and taking into account the interests of consumers.
Draft Merchant Shipping and Other Transport (Environmental Protection) (Amendment) (EU Exit) Regulations 2018
Nusrat Ghani Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Merchant Shipping and Other Transport (Environmental Protection) (Amendment) (EU Exit) Regulations 2018.
It is a pleasure to serve under your chairmanship, Mr Wilson. The Department for Transport has conducted intensive work to prepare for the UK’s departure from the EU and ensure that our statute book continues to function. The Department is laying about 66 statutory instruments before the House before exit day, of which 42 have already been made. The draft regulations are one such instrument. They will make changes in three areas of transport and environment legislation: legislation on air pollution, controlling sulphur dioxide emissions from ships; legislation on substances used to prevent the fouling of ships’ hulls; and transport and works legislation in relation to environmental impact assessment. If they look familiar, it is probably because they were one of several draft statutory instruments published on 28 March 2018 to support the passage of the European Union (Withdrawal) Act 2018.
The amendments that the draft regulations will make are technical. There are no policy changes in them, nor is there any reduction in the environmental standards or obligations to which the UK is subject. They are made mainly under the 2018 Act, which retains directly applicable EU legislation in UK law and makes provision to correct deficiencies that arise from the UK’s leaving the European Union. To enable the legislation to continue to work as part of UK law, the draft regulations will, where necessary, change references to “the Member State” and “the Commission” to “the Secretary of State” and “the United Kingdom”. Changes to definitions and other wording in the legislation have been made to reflect the UK’s position outside the EU.
That is the essence of the draft regulations, but I know that hon. Members are keen to hear more, so I will provide a bit more information. Although the regulations are made mainly under the 2018 Act, some changes are made under section 2(2) of the European Communities Act 1972 to update references to an EU directive on sulphur emissions from ships in the Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008. Since the 2008 regulations were made, Council directive 1999/32/EC has been repealed and replaced by EU directive 2016/802, so the draft regulations will replace references to the 1999 directive with references to the 2016 directive, which consolidates previous legislation on marine fuels. A further change, made under the 1972 Act, will correct an out-of-date reference to the European economic area agreement in the Transport and Works Act 1992.
I will say a little more about the three areas of legislation that the draft regulations will amend, because I know that hon. Members present are interested and the shadow Minister, the hon. Member for Kingston upon Hull East, has raised related issues. The first area is the control of sulphur emissions from ships, which is vital for meeting the Government’s policy of improving public health, reducing environmental damage from acid rain and protecting biodiversity. Powers to change references to international law have been transferred from the European Commission to the Secretary of State, which will enable us to keep up to date with changes to International Maritime Organisation rules on environmental protection. As colleagues will know, the IMO is the UN’s maritime body; as maritime Minister, I am very lucky that we host its headquarters here in London, just across the river.
Changes to the legislation on air pollution from ships will remove references to SafeSeaNet, a database operated by the European Maritime Safety Agency. The Maritime and Coastguard Agency will continue to receive information on compliance with IMO measures. The MCA is setting up a UK database to hold information on sulphur inspections and the taking of fuel oil samples. The draft regulations will ensure that recreational and pleasure craft will continue to benefit from certain exemptions in respect of diesel engines. The UK’s requirement to report to the European Commission, which will be redundant as it applies only to European member states, will be replaced with an obligation for the Secretary of State to publish an annual report on compliance with sulphur standards in marine fuels.
The second area of legislation that the regulations will change relates to the ban on the use of certain harmful chemical compounds, known as organotins, in ships’ anti- fouling systems. Anti-fouling paint and coatings, which inhibit the attachment of unwanted organisms to ships’ hulls, have an important role in improving ships’ fuel efficiency, which also improves the environment. However, the organotin compounds in some anti-fouling products, notably tributyltin—TBT—have been shown to be very damaging to marine life and have been banned under international and EU legislation. The UK is supporting work in the IMO to ban the use of a further compound used as a booster in anti-fouling paints. That will provide further protection to the marine environment. The regulations make no changes to EU restrictions on those substances; the changes made include replacing references to member states with references to the UK.
Finally, the regulations also introduce technical changes to the environmental impact assessment provisions of the Transport and Works Act and procedural rules. The changes will allow the UK to continue to take a co-ordinated and streamlined approach to producing an environmental impact assessment. For example, they will, as now, avoid the need for certain information to be collected twice. The Welsh Government have been consulted on the changes to the provisions and given their approval to the regulations.
The changes made by the regulations are needed. They will ensure that environmental laws on shipping and other transport continue to function after the UK’s withdrawal from the European Union. That will enable the UK to continue to comply with its international obligations as established by the International Maritime Organisation. The Government fully support the regulations, which I commend to the Committee.
Ms Ghani
I am grateful to the hon. Member for Kingston upon Hull East for his contribution to the debate, which shows that the Committee appreciates the importance of measures on environmental protection in relation to shipping and other forms of transport. The draft regulation will ensure the continuity of that legislation, as well as correct some minor but long-standing errors.
Some of the issues that the hon. Gentleman raised are quite technical, so I will indeed respond in writing, but I will address a couple of points now. He referred to SafeSeaNet, which provides information on ships in, or expected at, ports of member states. It is used for maritime safety, port and maritime security, marine environment protection and the efficiency of maritime traffic and maritime transport. The subject of access to databases has been raised regularly, so it is important to note that the THETIS database, which is linked to SafeSeaNet, shows which ships have priority for inspection and allows records of inspections. Via THETIS, reports are available to all port state control authorities in the EU and signatories to the Paris memorandum of understanding. The UK will continue to have access to THETIS, but not to additional EU modules for THETIS that are tied to EU legislation.
The hon. Gentleman also referred to the burden that could be placed on the MCA. As the Minister responsible, I work closely with the MCA team, who are very well aware of their extra roles and responsibilities and of their reputation for delivery. Above and beyond that, we have a responsibility as the host country for the IMO and as part of the delivery group for the 0.5% cap on sulphur by 2020. We foresee a serious leadership role there, too.
The Government recognise the significant harm that air pollution can cause to human health. When the hon. Gentleman raised the subject in a previous debate, we wrote to him about it; I would be pleased if he allowed me to respond in writing again. We have now published our clean air strategy, which includes further measures on ports and shipping. Shipping must play its part, and I was pleased that last year my Department established the Clean Maritime Council. One of the council’s first tasks was to develop a clean maritime plan by spring this year, setting out domestic policies to reduce greenhouse gas and pollutant emissions from shipping. Our clean air strategy makes further commitments, including the development of air quality strategies by ports. It will supplement the good progress made through international action, such as the North sea emission control area and the tougher global controls on sulphur emissions from 2020, which have led to major reductions in emissions.
The draft regulations will not restrict our ability to take necessary action; they will only make changes that are essential to ensuring that environmental legislation continues to function effectively in the UK from day one after exit. I hope that the Committee has found this morning’s sitting informative and that it will join me in supporting the draft regulations.
Question put and agreed to.