Civil Aviation (Insurance) (Amendment) (EU Exit) Regulations 2020

Baroness Kennedy of Cradley Excerpts

Thursday 18th June 2020 Lords Chamber

[Baroness Kennedy of Cradley (Lab) [V]]

My Lords, this statutory instrument is technical. It makes sure that the Government can ensure that the correct insurance requirements are in place for air carriers and aircraft operators at the end of the transition period. However, as has been noted by my noble friend Lord Foulkes, the deadline for the end of the transition process is fast approaching. With aviation being one of the most heavily regulated industries, there will be a number of SIs in this policy area for Parliament to agree by the end of the year. They must all be done in time for the CAA to prepare and to give airlines the certainty they need after this period of significant upheaval.

Given the understandable delays due to Covid-19, and the limits on Parliament due to social distancing, is the Minister confident that there will be time for proper parliamentary scrutiny, and agreement, of all of the SIs that will be needed to ensure the smooth running of our aviation industry?

I turn now to the issue of aviation insurance. Covid-19 has hit the aviation industry very hard. Hundreds of aeroplanes have been left grounded. Social distancing measures and quarantines, along with low consumer confidence, are creating considerable uncertainty about what air travel there will be in the coming months. Yet I understand that commercial aviation operators have not typically purchased business interruption coverage, nor has it been widely available in the industry. That is why, as we have heard in the debate, discussions about insurance, and in particular business interruption insurance against pandemics, is now a hot topic.

There is interest in exploring insurance solutions to manage the potential impact of future pandemics and other costly disruptions, such as volcanic eruptions and extreme weather. The insurance sector has the capacity to create solutions for these risks. That will take time and will require a high level of commitment and collaboration between airlines, consumer groups, risk advisers and insurance representatives. However, as the world becomes increasingly interconnected, and risk becomes more global and complex, surely now is the time to address this issue by finding a creative solution that can protect passengers and airlines alike. Do the Government have plans to facilitate discussions in order to secure a system that protects airlines and passengers as regards insurance? If so, what conversations have they had with airlines and insurers about a new pandemic-based co-insurance agreement?

Finally, as we begin to look forward to air travel once more, what plans do the Government have to review protections for consumers following the experience of passengers during this pandemic regarding both refund policies and being able to fly safely?

Air Traffic Management (Amendment etc.) (EU Exit) Regulations 2020

Baroness Kennedy of Cradley Excerpts

Wednesday 17th June 2020 Lords Chamber

[Baroness Kennedy of Cradley (Lab) [V]]

My Lords, in the short time we have today, I want to make three points. First, I understand that this regulation revokes the EU Single European Sky performance scheme for improving air traffic management. Like the noble Lord, Lord Naseby, I would like the noble Baroness to clarify whether it is the Government’s intention to stick to the union-wide performance scheme in the areas of safety, environment, air space capacity and cost efficiency, or to develop a scheme specifically for the UK?

Similarly, my second point concerns the common charging scheme for air navigation services. Going forward, is it envisaged that the UK will remain a member of Eurocontrol and continue to use its centralised system for charges or, again, is it envisaged that the Government will develop their own system for the efficient management of charges?

Finally, these regulations largely give over responsibility for air traffic management to the Secretary of State or the Civil Aviation Authority. It is right that the Government seek to re-establish the majority of laws covering aviation before the end of the transition period. However, a huge amount of extra responsibility now seems to be falling to the CAA. As well as the responsibilities transferred to the CAA today—certification, oversight and enforcement in respect of air traffic management and air navigation service providers—it has also been confirmed by the Government that the UK is withdrawing from the EU’s aviation safety regulator, and these responsibilities will now too fall to the CAA. The change and scale of challenge for the CAA therefore seems enormous and will have a dramatic impact on its workload. It will need significantly more staff and budgetary resource to fill the void left by the aviation safety regulator alone.

Can the Minister say what is the Government’s plan to resource the CAA so that it can recruit staff, plan and ensure that our air traffic management policies and processes are ready by the end of the year? What guarantee do the Government have that international aviation regulators would accept the CAA’s regulatory standards, especially if it chooses to divert from the current safety regulations?

Motor Vehicles (Tests) (Amendment) (Coronavirus) Regulations 2020

Baroness Kennedy of Cradley Excerpts

Wednesday 13th May 2020 Lords Chamber

[Baroness Kennedy of Cradley (Lab)]

My Lords, I too thank my noble friend Lord Rosser for tabling this debate, which has allowed some interesting points to be made and questions raised. I can understand the decision to extend MoTs during the lockdown. However, we are now encouraging people who can work safely to go back to work. Do the Government therefore have any plans to change these MoT exemptions?

As we begin to transition out of the lockdown, a cause of concern for us all is a second wave of the pandemic. If we find ourselves in another lockdown in the autumn, will the Government look at extending MoT expiry dates again? If so, when will that decision need to be made? I know that some trade bodies for garages were disappointed and wanted a much shorter MoT extension. Do the Government plan to conduct an assessment of the impact of that decision on garages, MoT centres and motorists before making any further recommendations?

Like many noble Lords, I want to raise the issue of insurance. With more than 1 million cars failing their MoTs each year, there are undoubtedly cars on the road during the extension period that would have failed their MoT. I know that the Government have said that car owners must ensure that their cars are safe and roadworthy, and although they have a responsibility to do that, they are not mechanics. Given that, can the noble Baroness say what conversations the Government have had with the Association of British Insurers about the issue of roadworthiness for vehicles with extended MoTs being a factor in insurance claims? What plans do the Government have to provide guidance for motorists on making their cars roadworthy during this time?

Finally, vehicles that are parked on a public highway without an MoT can be reported, and therefore car owners can be fined. If a car’s MoT was due just before the end of March 2020 but the owner is self-isolating, staying at home or at home because they are clinically vulnerable, they are at risk of getting a fine. Filling in a Statutory Off Road Notification would be the last thing on their mind—even if they realised that they had to do it. What conversations have the Government had with the police to ensure that those who are self-isolating are not penalised for not having an MoT if it was due just before 30 March 2020? I look forward to the noble Baroness’s reply.