Merchant Shipping (Passengers’ Rights) (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 3 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 17 January be approved.
Relevant documents: 14th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
Licensing of Operators and International Road Haulage (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 3 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 6 February be approved.
Relevant documents: 17th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee A)
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, these draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the EU without a deal. They amend regulation 1071/2009, which sets the requirements and procedures for transport operator licensing, and regulation 1072/2009, which regulates access to the international freight market. This SI makes minimal changes to those regulations and consequential amendments to domestic legislation to ensure that road haulage markets continue to operate effectively.
Regulation 1071/2009 provides a framework for the licensing of transport operators—both haulage and bus and coach operators—in member states of the EU and ensures minimum standards across the EU. Operators are licensed by national authorities. In Great Britain, this is the traffic commissioners; in Northern Ireland, it is the Department for Infrastructure. Operators need to comply with four criteria in order to be considered fit and proper persons to hold an operator’s licence. These criteria are: having a stable establishment; being of good repute; having a sufficient level of financial standing; and possessing the required professional competence.
Regulation 1072/2009 sets out the rules and procedures for accessing the international road haulage market. It allows appropriately licensed hauliers from EU member states to operate in other member states and provides for enforcement mechanisms to regulate and control this access.
The withdrawal Act will retain regulations 1071/2009 and 1072/2009 in their entirety on exit day. The draft instrument we are considering makes the changes necessary so that these regulations continue to function correctly, and it is essential to ensure that the regulatory regime in place after exit continues to operate.
The regulations will ensure that the requirements of regulation 1071/2009 continue to be applicable to UK hauliers and public service operators—both those operating in the UK and those operating overseas. They will also ensure the continued operation of regulation 1072/2009, which provides that hauliers from the 27 EU member states will continue to be admitted to the UK provided they have a valid operator’s licence, issued by the country in which they are established, showing that they meet the requirements that I outlined earlier.
The regulations require hauliers to hold a UK licence for the Community after their current Community licence expires. This is a new document and will look very similar to the current EU Community licence, which hauliers already hold when operating in the EU. The criteria for this will be the same as for the Community licence.
The European Commission has already published legislation that would govern UK operators’ access to the EU for nine months after Brexit. This is based on the principle of reciprocity, and this SI allows us to offer a reciprocal level of access to EU hauliers. The regulations might also help in future negotiations. They demonstrate that the UK is committed to maintaining high standards in the freight industry that meet the EU baseline. They also allow for the UK to adjust levels of market access to EU hauliers in order to reciprocate whatever is agreed in the negotiations.
The access rules in regulation 1072/2009 also include provisions to allow hauliers to practise cabotage—jobs entirely in another member state. Currently, three domestic jobs in a seven-day period are permitted for EU hauliers as part of their return trip once they have completed a job in another member state. Previously the power to suspend cabotage provisions if they disrupted the domestic market was subject to the approval of the European Commission. These regulations transfer this power to the Secretary of State so that we have the ability to suspend cabotage for non-UK hauliers if reciprocal arrangements are not offered to UK hauliers in the EU.
The regulations also modify the Goods Vehicle (Licensing of Operators) Act 1995. Section 2 of the Act makes it an offence for a person to use a goods vehicle except under an operator’s licence. However, for very practical reasons, the provision exempts holders of Community licences issued by member states from this requirement. This means that EU hauliers are able to operate in Great Britain without having to apply for an operator’s licence. An equivalent provision is made in Northern Ireland legislation. The SI also allows us to exempt operating licences using secondary legislation in future.
The regulations provide for the continuation of the road haulage and passenger transport licensing system. They also allow for EU member state hauliers to continue to operate in the UK, ensuring that supply chains continue to function effectively. I beg to move.
Lord Tunnicliffe (Lab)
My Lords, I took a slightly more optimistic view of this SI than the noble Baroness, Lady Randerson. However, clarification in plain language will help. Paragraph 2.7 of the Explanatory Memorandum says:
“The UK operator licensing regime will generally remain as at present”.
I wonder whether we could have simpler language than that. My understanding, taken with recent agreement in the EU, is that the situation will be fully reciprocal. I will say it again, because it is a question to which I would like a direct answer. The Explanatory Memorandum uses terms such as “provided that”, which enthused me to look up the European Commission—I will not do this again. On 19 December 2018, it published a regulation of the European Parliament and of the Council on,
“common rules ensuring basic road freight connectivity with regard to the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the Union”.
At the end it says that the regulation applies until 31 December 2019, and that it was “done at” Brussels. I do not understand EU law. Is that now a piece of EU law? Does it, together with this SI, mean that in all respects, except the names of these licences, the situation for operators is identical to where we are now, with, of course, the overriding importance that the agreement of the EU is only until the end of the year?
Baroness Sugg
I again thank noble Lords for their consideration of these regulations. The noble Baroness, Lady Randerson, asked about the hot topic of ECMT permits. The European Commission has published the draft regulation on road transport. It was approved by the European Parliament last week. We expect it to be approved by the Council of Ministers this week—tomorrow, in fact. We welcome the substance of these proposals, which will ensure that the majority of UK hauliers can continue carrying goods into the EU for the rest of the year without needing an ECMT permit, providing that we reciprocate and provide equivalent rights to EU hauliers, which we are doing through these regulations.
Lord Tunnicliffe
Am I right in understanding that that also includes the cabotage allowance?
Baroness Sugg
The Commission’s proposal includes the right for UK hauliers to complete point-to-point journeys and transit journeys. It also offers limited cabotage and cross-trade journeys. Cross-trade journeys are limited compared to what UK hauliers can do now, which is three movements in seven days. They will still be allowed to do two cross-trade or cabotage operations on every international trip for the first four months of these regulations, then one cross-trade or cabotage operation every trip during the next three months.
Baroness Randerson
Could I point out that this complexity underlines the importance of consultation and, therefore, public awareness? People in the industry could be forgiven for being confused.
Baroness Sugg
I agree with the noble Baroness. The EU has proposed a complex system. It has been clear that it is not replicating current market access provisions, but it is ensuring basic connectivity and phasing out the current system by the end of the year. However, given that UK hauliers are allowed to have these journeys, we do not expect the vast majority of haulage operations to be able to continue. We have ECMT permits to fall back on.
As I said, the measure is based on the UK granting reciprocal access. To protect businesses and minimise disruption, we are currently offering more to EU hauliers than the EU is offering us, so we are mirroring the situation at the moment. We have the power to amend this and mirror the EU’s offer. The regulation does not cover transit to third countries, but will cover transit to EEA countries such as Norway, so we will use the ECMT permits to those third countries. It also makes it clear that bilateral agreements with the UK can be negotiated and concluded for periods during which the regulation applies—for example, after December 2019—but should we be in a no-deal scenario and should these regulations come in, we will of course be negotiating at pace to understand our future arrangement.
If we leave the EU without a deal, we will not be able to issue Community licences, as we will no longer be a member state. Therefore, we have had to come up with a replacement document: the UK licence for the Community. UK hauliers should continue to carry their current Community licence, which lasts for five years. Only when a Community licence expires will it be replaced by the new UK licence for the Community.
Maritime 2050 Strategy
Baroness Sugg Excerpts(6 years, 4 months ago)
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Lord Mountevans (CB)
In begging leave to ask the Question standing under my name, I declare my interests as recorded on the register.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, following the successful launch of the Maritime 2050 strategy, the Government’s focus is now on harnessing the enthusiasm and momentum generated and on implementing the recommendations at pace. That is under way through themed route maps, two of which are already published, with more following throughout 2019. The Government’s continued strong partnership with industry will be crucial, and we are enhancing the governance arrangements, which bring government and the sector together, to ensure that we deliver this ambitious strategy.
Lord Mountevans
I thank the Minister for her response and commend the Government for the considerable work and support that the strategy demonstrates for this key sector. Trade, and our relationships with other countries, have clearly come into sharp focus. The maritime sector enables 95% of Britain’s exports and imports, contributes over £37 billion in GVA—bigger than aerospace—and supports almost 1 million jobs, more than aerospace or motor manufacturing. The strategy acknowledges the impact that new technologies will have on the maritime sector and the huge opportunities that will arise. What assurances can the Minister give that the Government will support and join MarRI-UK—in the light of leading maritime businesses, including SMEs, universities and other expert organisations, coming together through this national research and innovation body?
Baroness Sugg
I thank the noble Lord for his Question, for his support of the maritime industry and for the important role he played when chairing the Government’s Maritime Growth Study. The Maritime 2050 strategy makes it clear that new technologies can help transform the industry and provide significant economic benefit. MarRI-UK will bring together expertise from a range of businesses and other organisations, and I assure the noble Lord that the Government strongly support the work of MarRI-UK. We hope that the organisation will become a key partner in delivering our strategy as set out.
Lord Berkeley (Lab)
My Lords, I welcome this report but does the Minister understand the importance of shipbuilding? The report states that the Government will,
“further develop the UK shipbuilding and maritime engineering industry, building on our global reputation for design, innovation and quality”.
All that applies to Appledore, which is due to close this Friday. What are the Government doing to make sure that they get more orders and find an operator for it?
Baroness Sugg
My Lords, we published the National Shipbuilding Strategy in 2017, which will help transform naval and commercial shipbuilding. In relation to Appledore, the Government have worked hard with Babcock to identify defence opportunities that could protect the yard. However, regrettably, we were unable to identify any potential solutions. The South West Business Council has created a task force to help to ensure a future for the Appledore yard and negotiations with potential proprietors are ongoing. I know that the noble Lord has made representations on this matter to the Maritime Minister, who has responded and is working closely with local stakeholders.
Baroness Sater (Con)
My Lords, last week we celebrated International Women’s Day, but women are still extremely underrepresented in the transport sector. Only 4% of UK maritime certificated officers are women. This is a shocking statistic. What will the Government do to encourage diversity in the maritime sector?
Baroness Sugg
My noble friend is right to highlight that women are badly underrepresented in the maritime sector and across the transport sector. The Women in Maritime Taskforce, which is supported by the Maritime Minister, Nusrat Ghani, has been working to address the issue. More than 100 organisations have signed the Women in Maritime Charter, which commits maritime companies to building an employment culture that actively supports and celebrates gender diversity. We have also recently funded the 1851 Trust’s maritime roadshows, which will promote maritime careers to girls across the country.
Baroness Smith of Newnham (LD)
My Lords, under the heading of “competitive advantage recommendations”, Maritime 2050: Navigating the Future recommends that the Government and industry should work together,
“to maintain and enhance the attractiveness of the UK’s regional maritime clusters and London as a global maritime professional services cluster”.
Can the Minister explain to the House how the Government propose to do that in the context of Brexit and whether the Secretary of State for Transport is really the best person to be navigating our future?
Baroness Sugg
My Lords, we are working closely with the maritime sector to ensure its continued success regardless of the outcome of the Brexit negotiations. Much of the maritime sector is governed internationally and the UK plays a prominent role in the International Maritime Organization, which is based just over the river from here. We will continue to play a key role regardless of the outcome of the negotiations.
Lord Greenway (CB)
My Lords, while I welcome the Government’s strategy, I ask them to do everything in their power to expedite the re-emergence of coastal shipping. This sector is of great importance to some of our coastal communities, which have been suffering from economic decline. The adoption of new propulsion techniques such as gas or even hydrogen would benefit the environment and new ships would reduce the number of heavy goods movements on our increasingly congested roads.
Baroness Sugg
My Lords, we have the excellent Maritime Growth Study, which was led by the noble Lord, Lord Mountevans, with a review published last year. I agree with the noble Lord that we must do what we can to support the ports around our country. We have made great progress in ensuring that the UK has a strong maritime sector, with several billion pounds-worth of investment having been made across UK ports in recent years. The technology factor which the noble Lord has highlighted is something that we focus on in the strategy.
Lord West of Spithead (Lab)
My Lords, I welcome this document but it is rather light on action. I am delighted that the Minister has said that it is harnessing my enthusiasm to try to do something about it—I would like to try to show that I have some enthusiasm for it. My question relates to shipbuilding and ship repair. There is no doubt that that is a crucial part of all of this. We have heard mention of Appledore already. We are about to go for competition for what I hope will be three solid support ships for the Royal Navy. Surely those ships should be built in the United Kingdom so that we can get the full benefit of maintaining high-level, high-tech jobs. We would not have to close shipyards or make people redundant. We can use British steel and there is absolutely no reason that we cannot build such ships in this country, because there is no requirement to put them to open competition.
Baroness Sugg
My Lords, I believe that a global competition is running on that, but a British consortium is bidding. As I said earlier, we published the National Shipbuilding Strategy in 2017 which will help transform naval and commercial shipbuilding and the related procurement process. It details a new and competitive approach to the delivery of shipbuilding in this country.
Lord Tunnicliffe (Lab)
My Lords, there seem to be more than 100 recommendations in the report, along with 143 references to the Government. Just how much resource is the Department for Transport going to put into this project?
Baroness Sugg
My Lords, the noble Lord is right to highlight the many recommendations in the strategy. It contains commitments on how we are going to take action across the seven themes addressed in the strategy. Our priority is to ensure that the recommendations are implemented, with a focus on the next five years. I referred earlier to the publishing of road maps which will set out the plans, milestones and timing for the implementation of the recommendations. We have resources in place to deliver the strategy and of course we are also working closely with the industry to help deliver it. In terms of future funding, we are putting together a bid for the upcoming spending review which reflects our ambitions and the commitments made in Maritime 2050.
Aviation Safety (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 4 months ago)
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Baroness Sugg
That the Grand Committee do consider the Aviation Safety (Amendment etc.) (EU Exit) Regulations 2019.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, this draft instrument will be made using powers in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union in March without a deal.
The draft instrument corrects five principal EU regulations related to aviation safety, together with a number of Commission implementing regulations made under them. The draft instrument also makes some corrections to domestic legislation which establishes offences and penalties relating to the EU legislation. The most important of these is EU Regulation 2018/1139 —more commonly known as the EASA basic regulation —which establishes a comprehensive regulatory framework for aviation safety in the EU. In particular, it provides for the continued establishment of the European Aviation Safety Agency and the adoption by the European Commission of implementing regulations on aviation safety. These implementing regulations also ensure the EU member states can meet their obligations under the Convention on International Civil Aviation—the Chicago convention.
The implementing regulations each deal with a specific aspect of aviation safety regulation, including: the design, construction, maintenance and operation of aircraft; the licensing of flight crew, maintenance engineers and air traffic controllers; the provision of air traffic management and air navigation services; the design and operation of aerodromes. The other principal regulations are: Regulation 3922/91, on technical harmonisation, which has largely been replaced by the EASA basic regulation—but provisions on flight and duty time limitations still apply to the crews of aeroplanes undertaking air taxi, emergency medical service and single pilot commercial air transport operations; Regulation 2111/2005, which establishes the list of air operators banned from operating to the EU on safety grounds; Regulation 996/2010, which sets requirements for the investigation of air accidents and incidents; and, finally, Regulation 376/2014, which establishes requirements for civil aviation occurrence reporting.
Many of the corrections we are considering today are to clarify that the retained legislation only applies to the UK. For example, references to “the territory to which the treaties apply” are replaced with “the UK”, and references to “the competent authority” are replaced with references to “the CAA”. Other amendments relate to the relationship between member states. For example, requirements on the mutual recognition of licences are deleted, as are requirements on co-operation and the sharing of information.
The draft instrument also reassigns functions that currently fall to EU bodies. The majority of regulatory functions required under the EU regulations are currently undertaken by the competent authorities of member states. These include: licensing pilots, air traffic controllers and maintenance engineers; and certifying the airworthiness of individual aircraft. However, EASA is responsible for a number of functions, including: preparing proposals for new technical requirements and for amendments to existing technical requirements; approving organisations that design aircraft and aircraft engines as well as certifying the design of aircraft and engines types. The CAA will take on these functions, with the exception of those related to management of the EU safety regulatory system, which will be corrected so as to no longer apply. While design certification has formally sat with EASA since 2008, it is not a capability that the CAA has totally relinquished, and we are confident that the CAA will be able both to meet the needs of industry and to fulfil the UK’s international obligation as the “state of design”. The CAA is implementing contingency plans to ensure that it will be able to undertake the new functions effectively from exit day in the event of no deal.
The European Commission also has a number of functions under the EU regulations. Most notably, it has the power to adopt regulations, to adopt or amend technical requirements, to impose operating bans on airlines which do not meet international safety standards and make limited specified amendments to the principal EU regulations. All of these legislative functions will be assigned to the Secretary of State.
The powers to amend the retained principal EU regulations are very limited and are designed to ensure that the regulatory system can adapt to technical developments and changes to the international standards adopted by the International Civil Aviation Organisation—ICAO. Most notably, the Secretary of State may amend the annexes to the retained principal EU regulations, particularly the ones to the EASA basic regulation. The annexes contain the high-level safety objectives which are implemented through the technical requirements. This power is exercised through regulations subject to the negative resolution procedure.
In addition, the draft instrument also revokes four implementing regulations that set out internal procedures for EASA and which will become redundant after exit day. None of the amendments in this instrument changes any of the technical requirements established by the retained EU regulations. All valid certificates, licences and approvals issued by EASA or by EU/EEA states prior to exit day will remain valid in the UK by virtue of the withdrawal Act. The draft instrument provides that such certificates shall be treated as if they were issued by the CAA. The instrument limits the validity of most such certificates to two years after exit day, after which time CAA-issued certificates will be required. However, certificates related to aircraft design will remain valid indefinitely. The CAA needs to issue the safety certificates to have full oversight of aviation safety in the UK in accordance with the UK’s obligations under the Chicago convention.
The best outcome is for the UK to leave the EU with a deal, and delivering a deal negotiated with the EU remains the Government’s top priority. However, we must make all reasonable plans to prepare for a no-deal scenario. This draft instrument ensures that, in the event of a no-deal exit, legislation on aviation safety continues to work effectively and that the aviation industry has clarity about the regulatory framework in which it would operate in a no-deal scenario. I beg to move.
Lord Berkeley (Lab)
My Lords, I am grateful to the noble Baroness for introducing these regulations. It would be good if she could say something further as a result of the Boeing accident a couple of days ago, which brings aviation safety into focus.
I have a couple of questions, and I will use the Explanatory Memorandum as a reference because it is easier. My first question is on paragraph 7.2, “Corrections to domestic subordinate legislation”. She said that most aircraft types are subject to EU technical requirements and that will be changed from “EASA aircraft” and “non-EASA” aircraft to “Part-21” and “non-Part-21”. What is the point of this, and has anybody seriously tried to get associate membership of EASA? I know “European” is in the name, which probably means that it is anathema to some members of the Government, but it would be a lot easier. I will probably bring this up when we debate railways as well. EU technical requirements are well known and well respected. We will have CAA technical requirements if this SI goes through. What happens when they diverge? Is there any mechanism for our side to talk to the European side? It is pretty stupid to have technical requirements for aircraft in this country that will be different—even to a small degree—from those in the European Union. Of course, the same applies vice versa. We tend to think only about the problems in this country, but for our planes to be able to fly on the continent, presumably somebody has to confirm with EASA or the Commission that the technical requirements of our planes fit in with their specifications.
My second question relates to paragraph 7.5 of the Explanatory Memorandum concerning banned operators. Quite a few rather unpleasant cases over the years come to mind. The paragraph refers to the,
“list of aircraft subject to an operating ban in the Community”.
That means that there is a list, which is great, but what process will there be for the UK and the European Union to share that list? It would be pretty stupid to have two lists, and I hope that the Minister can give us some comfort that there will be a mechanism for sharing, as this is a very important issue.
My last question relates to paragraph 7.8, which refers to,
“powers provided for in Single European Sky”.
That is an ambition that has not quite been achieved, although it is some of the way there. Do I understand that it will now be dumped, that there will be a single European sky that does not include the UK and that we will have our own little sky? I look forward to the Minister’s responses.
Lord Tunnicliffe (Lab)
My Lords, I make my usual statement that I deeply regret being here. I think the idea of leaving the European Union without an agreement is absurd. In many ways, this SI and the many SIs I have worked through illustrate just how bad a situation it will be, but assuming that we are leaving, or have to be ready to leave, the EU without an agreement, I have looked at this SI. Its thickness deterred me from reading it, so my comments are based on the Explanatory Memorandum. Having been in the industry, I look forward to the seminar that the Minister is no doubt about to give us on ICAO. She will no doubt explain how this statutory instrument answers many of the questions that have been asked. I am sympathetic to many of them.
I shall restrict myself to two issues. The first is the powers of the Secretary of State. I have dealt with an awful lot of these SIs, and they have the same general characteristic: the stuff that is handled by EU regulators gets handed to UK regulators, and the stuff that is handled by the Commission is transferred to the Treasury. As I understand it, the Treasury is a body in its own right that can make decisions as a body in its own right. In a sense, one would expect the Treasury to be equipped to make those sorts of decisions. Here, paragraph 7.4 of the Explanatory Memorandum states:
“Delegated powers in the Basic Regulation are transferred from the Commission”;
and it ends by introducing a role for Parliament:
“Regulations made by the Secretary of State would be subject to negative resolution procedure”.
Unfortunately, as you read the document, it implies that decisions will be made by the Secretary of State himself, as the natural person. Given recent history, I am not sure that Parliament should be that comfortable with the idea of giving decisions to this Secretary of State, as the natural person. I assume it will not work like that. I assume the department and the Secretary of State will set up systems to advise the Secretary of State to analyse the issue and make sure that when we come to examine the regulations—if we choose to, under the negative procedure—the decisions would be backed up by a proper decision-making system, which the Minister will be happy to present to us. I hope we have reassurance on that point. To some extent, that covers one of the points made earlier in this debate.
Reading through the Explanatory Memorandum, I also stumbled across paragraph 7.6, which says:
“Corrections made include … removing provisions dealing with the relationship with and cooperation between EU Member States”.
I know we have had two tragic events recently, but the tremendous improvements made over recent decades in civil aviation safety absolutely depend on worldwide, international co-operation. Therefore, I hope that that paragraph is a technicality and that it will not change the attitude of the British Government to continuing to pursue this strong co-operation through the international bodies. I ask the Minister: what procedures will be put in place and what agreements will be sought to continue to optimise safety through international co-operation?
Baroness Sugg
My Lords, I thank noble Lords for their consideration of this draft instrument. Before I move on to the SI, I am very happy to give noble Lords an update following the tragic accident in Ethiopia. The UK CAA has been closely monitoring the situation, as has the department. It made an announcement just after lunchtime today that it does not currently have sufficient information from the flight data recorder, so as a precautionary measure, it has issued instructions to stop any commercial passenger flights with that aircraft for any operator arriving, departing or overflying UK airspace. The safety directive will be in place until further notice, and of course the CAA remains in close contact with EASA and industry regulators globally.
It might be helpful to start by reiterating our position on EASA. We seek continued UK participation in EASA. This will help to ensure high levels of safety, as well as facilitating trade between the UK and the EU. We have the second largest aerospace sector in the world and the largest aviation sector in Europe, so it is not in any of our interests not to participate. It is a critical industry and, of course, safety is critical. This SI is not intended to remove us from EASA; that is a consequence of a no-deal Brexit. We want to see continued participation, but it is not just up to us to decide that. We very much hope that the EU will want us to continue participating in EASA. As the noble Baroness said, we have been deeply involved throughout its history. We very much hope that the EU will agree to our continued participation. However, we need this SI to be in place to ensure that we have a contingency plan; that is what this SI gives us. We very much hope that we will agree a deal and see continued participation in EASA. If we are in a no-deal situation, we expect to move into conversations about our future air transport agreement very quickly, which will also cover safety issues.
In response to the noble Baroness, Lady Randerson, who highlighted our response to the SLSC back in December, the mirror image of these regulations is the EU safety regulation. The EU is in the process of adopting the regulation on aviation safety. It will be voted on in the European Parliament tomorrow and at the Council next week. It has already been agreed at the Committee of Permanent Representatives and we expect no issues with its adoption. That EU regulation is ultimately designed to prevent disruption to the EU industry, but it will be beneficial to us as well. It has three strands. First, it will extend the validity of certificates issued by EASA to UK-based design organisations. That extension is initially set at nine months, but the Commission is empowered to extend it if it proves necessary. Secondly, it provides for the continued validity of authorised release certificates for products, parts and appliances, certificates of release to a service issued on completion of maintenance, and airworthiness review certificates issued prior to exit day by organisations approved by the CAA. Finally, it provides that examinations taken at CAA-approved training organisations prior to the entry into force of the regulation will remain valid. We think that the EU’s regulation, as ours, is a sensible contingency measure to have in place for a no-deal exit. It is not a permanent solution, and we very much hope that we agree a deal, and, if we do not, that we are able to negotiate further on safety regulations.
The noble Lord, Lord Berkeley, raised the issue of the banned airlines list. I agree that this is a very important list to have. On exit day, the UK list will be established and it will mirror the current EU banned list. The list will be published on the CAA’s website, and it will be updated to reflect the imposition of operating bans. Operating bans are imposed by the refusal or revocation on safety grounds of permission for an airline to operate to the UK or by the refusal or revocation of a third-country operator authorisation. As the noble Baroness, Lady Randerson, pointed out, unlike the EU list, the UK list is not contained in legislation because it does not itself impose the bans, but reflects bans that have been imposed by the exercise of statutory powers. We will, of course, aim to keep the UK list consistent with the EU list as far as possible, and the decision on any operating bans will always be based on advice from the CAA.
Baroness Sugg
My Lords, before the vote we were discussing the banned airlines list. As I said, we will aim to keep the UK list consistent with the EU list, as far as possible. Those decisions on operating bans will be based on advice from the CAA. The method of enforcing that ban will be the same as it is today: the withdrawal of a permit or operating licence. There may be instances where the UK lists will need to deviate: if we have evidence that an airline does not meet international standards, we may want to prohibit it flying to the UK and add it to the UK list, even if the airline is still permitted to fly to the EU. We are working closely on implementing that list. There may be some resource implications, but we expect to be able to use existing resources within the CAA. As with all these things, we very much hope that we will be able to maintain close co-operation with the EU and maintain the same list.
The noble Lord, Lord Berkeley, raised the issue of the single European sky. We have already discussed the statutory instrument on air traffic management, and we absolutely recognise the need for our air traffic arrangements to remain in line with the rest of Europe. Safe and efficient air traffic management is a priority for us, and we will continue to work with European partners on it.
The new delegated powers were raised by all noble Lords. As I said, the draft instrument gives us delegated powers to make regulations, subject to negative resolution parliamentary procedures. The powers relate to the amendment or adoption of detailed technical requirements, which need to be updated regularly to reflect technical developments, changes to international standards, recommendations arising from accident investigations and so on. As the noble Baroness, Lady Randerson, pointed out, these changes come thick and fast. This reflects existing UK practice, where the technical requirements for aviation safety are contained in secondary legislation made using the negative resolution procedure and the fact that the EU requirements were adopted under Commission implementing regulations.
The draft instrument contains a power for the Secretary of State to amend the essential requirements contained in the annexes to the EASA basic regulation by making regulations subject to the negative power. These very limited powers are designed to ensure that the regulatory system can adapt to technical developments and changes to international standards adopted by the International Civil Aviation Organization to ensure a continued high level of safety. I understand the noble Baroness’s concern about consultation involving the CAA. We will of course always base these decisions on advice from the CAA, but the powers are very limited and relate only to adopting international standards, which we will continue to follow.
Lord Berkeley
On consultation, can the Minister assure me that there will no more use of non-disclosure agreements for this ongoing consultation? That is happening at the moment for whatever reason, but it does not need to be a precedent that carries on after Brexit.
Baroness Sugg
I agree with the noble Lord. We have used NDAs when commercial issues are at hand, for example on our US agreement. The aviation industry is not silent about Brexit. It has been very clear about its position. It is supportive of this draft instrument, but it is not supportive of no deal or leaving EASA; it is making that very clear and has done for quite some time. I genuinely do not feel that the industry has in any way been restricted by talking about its views on Brexit; it has been very vociferous on that point, and we are very aware of its views, which have influenced our position on EASA membership.
The noble Lord, Lord Tunnicliffe, asked about the removal of provisions dealing with the relationship with and co-operation between member states. As I said previously, our future relationship with EASA is going to be a matter for negotiation. We have been clear on our position. We very much hope that the EU will welcome that. It has been quite frustrating because the CAA has not yet been able to have conversations with EASA because of the position we are in with the negotiations. We stand ready, but we have not been able to do that because a deal has not yet been agreed. We will continue to participate in ECAC and ICAO, as participation in both organisations does not depend on being an EU state. Even in a no-deal scenario, we recognise the importance of co-operation and collaboration with our European and international partners and will continue to do that.
I think I have answered all the questions—
Baroness Randerson
Can I take us back to the CAA’s 59 new employees? I am delighted to hear that progress has been made. However, it occurs to me—going back to what the noble Baroness said at the beginning of her response—that this SI is for a no-deal scenario, but the CAA has had to recruit for a no-deal scenario that might not happen. I am sure most of us very much hope that it will not happen. What will happen to these staff if there is a deal and good transition arrangements that allow us to continue as members of EASA and dovetailing in? I am not trying to have it both ways; I am not trying to say that they should not have been employed because they might not be needed. It just occurred to me that this is nugatory expenditure, but it might also have an impact on the permanence of people’s employment.
Baroness Sugg
The noble Baroness makes a very good point. These are difficult decisions. We need to make sure that we have contingency plans and the right people in the right place. On the cost of those people, the DfT gave the CAA £2.7 million from the Treasury to build up contingency. These costs have yet to be transferred to industry, at least. She is quite right that people are being affected. I cannot speak for the CAA and its human resources plan, but it is an excellent employer and I am sure that it will have a good plan. Regardless of whether we get a negotiated agreement, many other aspects will need to be discussed, such as our future relationship following the end of an implementation period. I very much hope that those people will be used and used well. However, I will take up that point with the CAA next time I speak to it.
As I said, we are working towards a negotiated agreement that is supported by Parliament, and we very much hope that that will happen. However, we need to ensure that we are prepared in the event of no deal, and this draft instrument is a key part of the preparations. Aviation safety is a priority for us and, as the noble Baroness said, that has been highlighted by the tragic events over the weekend.
Both the UK and the EU have set out their intentions on safety regulations to ensure that we have the plans we need in place and to ensure that we continue to have a high-level—a world-leading level—of aviation safety, irrespective of the outcome of the negotiations. I beg to move.
Aviation Noise (Amendment) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 4 months ago)
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Baroness Sugg
That the Grand Committee do consider the Aviation Noise (Amendment) (EU Exit) Regulations 2019.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, the draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union in March without a deal.
The regulations make amendments to domestic legislation and a directly applicable EU regulation that relate to aviation noise certification and the process for when operating restrictions are considered at airports. The first of those is the Aeroplane Noise Regulations 1999, which were made to implement in UK law EU obligations relating to noise certification requirements in relation to propeller-driven and civil subsonic jet aeroplanes. The noise regulations prohibit certain aircraft taking off or landing in the United Kingdom without an in-force noise certificate issued by the UK, or a competent authority of the state of registry recognised by the UK.
The Air Navigation (Environmental Standards for Non-EASA Aircraft) Order 2008, also known as the environmental standards order, would also be amended by this SI. It sets out the environmental standards relating to noise and emissions of specific UK-registered aircraft that are not subject to the basic EASA regulation—Regulation EU 2018/1139—and regulation by the European Aviation Safety Agency. These regulations apply largely to light and microlight aircraft.
Thirdly, the regulations would amend Regulation 598/2014, commonly known as Regulation 598, which establishes the rules and procedures with regard to the introduction of operating restrictions at certain airports based on a balanced approach to noise management—an agreed International Civil Aviation Organisation principle since 2001.
Finally, the regulations would also amend the Airports (Noise-related Operating Restrictions) (England and Wales) Regulations 2018, otherwise known as the operating restrictions regulations, which appointed competent authorities for England and Wales for the purposes of Regulation 598. The withdrawal Act will retain Regulation 598 in its entirety in the event of no deal.
The draft instrument also makes the necessary changes to the noise regulations, the environmental standards order and the operating restrictions regulations to ensure that the legislative framework continues to function correctly after exit day. The noise regulations are being amended so that in the UK, the same noise certification requirements apply to aeroplanes registered in an EEA state as apply to other foreign-registered aeroplanes. In effect, this will end the automatic recognition of noise certificates granted in the EU and the EEA, ensuring that the same rules apply in relation to the recognition of noise certificates for all aircraft registered outside the UK. The requirements relating to certification of UK-registered aeroplanes are also being amended so that they apply only to use in the UK rather than in the EU and the EEA. The regulations apply to propeller-driven and civil subsonic jet aeroplanes, including light aircraft and commercial passenger aircraft.
The changes to the environmental standards order amend the terminology in that order so that it is aligned with changes made to aviation safety legislation on EU exit. For example, the instrument removes references to EASA. The amendments to Regulation 598 provide for functions conferred on member states under the regulation to be conferred instead directly on the Secretary of State and, where appropriate, on the Northern Ireland Department for Infrastructure or Scottish Ministers. This includes an obligation on competent authorities to inform the Commission and other member states when operating restrictions are planned to be imposed, and instead provide for a UK-based “relevant authority” to be notified in place of the Commission. It also places an obligation on the relevant authority, instead of the member state, to ensure a right of appeal.
The Commission’s power to adopt delegated acts providing for technical updates to the regulations to take account of changes to international rules is conferred instead as a power for the Secretary of State to make regulations subject to the negative resolution procedure.
The amendments to the operating restrictions regulations reflect an amendment to the title to Regulation 598 made by this instrument.
The best outcome is for the UK to leave the EU with a deal, but this instrument ensures that, in the event of no deal, there will be continuity of aircraft noise standards and certification. It ensures that the regulatory regime in place after exit continues to regulate properly noise certification standards for aircraft and that the framework for consideration of operating restrictions at UK airports operates effectively. I beg to move.
Lord Tunnicliffe (Lab)
My Lords, I will not repeat at length the points made by my noble friend Lord Berkeley and the noble Baroness, Lady Randerson. I broadly agree with them and will certainly be listening with care to the Minister’s response. I do, though, come back to the issue of the Secretary of State exercising his powers. We got a clear answer on the previous SI that, in exercising his powers under that statutory instrument, he would consult the CAA. We need something a good deal more complex for this issue because noise is quite different in character from safety. Realistically, a member of the public does not have a useful or valid opinion about airline safety issues, but on noise a member of the public is exactly who it is all about. The issue is about communities around airports.
There are two areas that I would like the Minister to expand on. First, from what parts of government will the Secretary of State receive advice in exercising his powers? Secondly, I would like an assurance on matter of consultation. As far as I can tell, the statutory instrument seeks as far as possible in this nightmare scenario to maintain the status quo, but any changes to these regulations that the Secretary of State makes—using, once again, the negative procedure—will affect the general public in all the communities around airports, and of course there are also the additional issues of practicality, cost and so on. This is a difficult and complex political subject, so we need assurances that at any time in the future when the Secretary of State uses his powers under this instrument, he will conduct a full consultation to get all proper inputs to the decision-making.
Baroness Sugg
I thank noble Lords for their consideration of this statutory instrument. The regulations do not set noise policy; noise standards for aircraft are set by ICAO and we will continue to follow them.
On the point about the competent authority, last year we laid regulations that appointed competent authorities in England and Wales. The implementation provides for the local planning authority to be the competent authority when an application for any change is brought under the Town and Country Planning Act, but it also allows the Secretary of State for English airports or Welsh Ministers for Welsh airports to be the competent authority for called-in applications. Therefore, that matter is slightly separate from this SI.
The noble Baroness mentioned the balanced approach. Regulation 598 requires the competent authorities to take account of the balanced approach, and that requirement is kept by this SI. It will ensure that the balanced approach consists of identifying noise problems at specific airports and giving consideration to various measures that might be available to reduce noise. That is being carried over in its entirety.
Expansion at Heathrow is conditional on a package of mitigations. The NPS makes clear that noise mitigation measures should be put in place to ensure that the impact is limited. Again, that is going through the planning process following the judicial review process. We of course recognise that aviation noise is a key concern for communities living near airports. I regularly meet community groups and MPs to discuss this. We have played a leading role at an international level in relation to noise standards, and we will continue to promote further improvements in this area.
This SI does not change noise policy; it is concerned only with corrections as a result of EU exit. It does not impose restrictions; it is just a framework. We are consulting more widely on our noise policy, which we set at a national level through the aviation Green Paper consultation which we published in December. In that, we set out a number of policies designed to reduce noise and its impact, and that is how we will set our noise policy in future.
On consultation, in 2017 we consulted on proposals for appointing competent authorities, and the Scottish Government conducted a consultation on their proposals earlier this year. However, we have not consulted communities on this. The changes in Regulation 598 will not have a direct impact on overflown communities. They will ensure that the correct procedure is followed when operating restrictions are considered or it is proposed that they be imposed, but they will not change things for communities per se. As I said, that is being dealt with through the aviation strategy consultation.
There is a delegated power which provides for the Secretary of State to make secondary legislation under the negative procedure. It is about providing technical updates to the regulations, but again that power is limited to such updates to the noise certification standards and methodology indicators relating to the assessment of noise impact at an airport. Again, those updates are limited within the regulations to account for changes to relevant international rules.
As with the previous SI that we discussed, we will continue to follow the international rules. We have been leading the way with our noise policy and are suggesting further measures to improve it through the consultation. We will publish our final aviation strategy later this year, which we hope will address the understandable concerns of communities around the airport. However, that noise policy is not directly relevant to the SI we are discussing, which simply ensures that in the event of a no-deal exit from the EU there will be continuity of aircraft noise standards and certification and of the process when operating restrictions are considered at airports.
Lord Berkeley
Perhaps I may press the Minister a little further on the competent authority. I think she said that the competent authority for Heathrow would be the Secretary of State, but I recall that over the past 30, 40 or 50 years, Ministers of different persuasions have had a major influence on what happens at Heathrow. It does not matter which party has been in power; a Minister either likes it or does not like it. There is a perception that these Ministers have encouraged studies, shall we say, or other independent work to support their particular opinion. I suppose that is part of the political process for Heathrow, but nobody will have any confidence if a Secretary of State is promoting very hard an expansion of Heathrow while being the competent authority in deciding whether the noise is too great or too little, or whatever. I appreciate that this SI—
Lord Berkeley
I was just concluding. I wanted to note that, as we all know, this SI will come into force only if there is a hard Brexit. However, it would be good to have the Minister’s assurance that, depending on the type of Brexit we have—if there is no Brexit, it will not matter, but it will matter if there is some type of Brexit—if and when she brings these regulations back again she will take into account the question raised by several noble Lords about the competent authority and independence when it comes to Heathrow and perhaps other airports as well.
Baroness Sugg
I understand the noble Lord’s point, but competent authorities will not be appointed by this SI. That was done last year following extensive consultation. As I said, that role was to follow the balanced approach of ICAO. Article 3 of Regulation 598/2014 requires competent authorities to be independent.
Of course, the Government and the Secretary of State are allowed a position on airport expansion. They are very clear on the benefits that expansion at Heathrow will bring. That will have an impact, which is why we set out lots of requirements in the national policy statement. The Secretary of State is not deciding on the planning process; that is being done through the independent planning process, as is right.
Under Regulation 598, the appeal route is broadly aligned with the planning process, so there may be scope to challenge any local planning authority’s decision related to operating restrictions. That is the appeal process under the Town and Country Planning Act 1990. For all other cases, including where the Secretary of State was the decision-maker, judicial review would be the appropriate route for challenging that decision. There is independence there on the granting of planning permission and the appeal route.
As I said, I very much understand the impact aviation noise can have on communities. As Aviation Minister, I am alive to it, which is why we suggested many new noise policies in our consultation on the aviation strategy. This SI is purely about the regulatory framework and will ensure the continuity of aircraft noise standards and certification and the process for considering operating restrictions at airports in the event of no deal. Noise policy is covered extensively elsewhere.
Baroness Randerson
Will the Minister address the issue of the nature of the consultation? Did any of the meetings, workshops and long-established stakeholder forums include local authority representatives or representatives of community groups established across the country by airports?
Baroness Sugg
For this SI, they did not because the communities are not going to be affected by it. We consulted when we were appointing competent authorities because that will affect them. That was properly consulted on in 2017 ahead of those regulations coming into force. We did not consult on this SI because we do not believe that it is going to affect communities. It is purely about transferring the regulatory framework and not about the noise or competent authority policies. We are having a full consultation now on our aviation strategy after setting out some policy positions. We will certainly meet community groups; we are meeting community groups and will continue to meet them as the consultation evolves and the strategy develops.
Lord Berkeley
My Lords, the Minister is right that there is no change in policy but, as I understand it, there is a change of the organisation or person who is the competent authority. It is now the Secretary of State and before it was somebody from one of the European organisations. There is a change and that introduces a conflict of interest.
Baroness Sugg
There is a change, but to the relevant authority not the competent authority. The competent authority is staying the same. Competent authorities were consulted on and set in the previous regulations. Under current EU law, they have an obligation to report operating restrictions to the Commission. Instead, under this SI they will have an obligation to report operating restrictions to the relevant authority. In some cases, that will be the Secretary of State, in others, it will be the Scottish Government. I do not believe there is a conflict of interests because the competent authority remains the same; it is purely who it reports to that will change. There are the same reporting obligations but just to a different person.
Aviation Statistics (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 4 months ago)
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Baroness Sugg
That the Grand Committee do consider the Aviation Statistics (Amendment etc.) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, these draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018 and the European Communities Act 1972. Unlike our two previous SIs, some provisions in this instrument will be needed if we leave without a deal, but specific provisions relating to an enforcement power are needed regardless of the outcome of EU exit negotiations.
The regulations amend EU Regulations 437/2003 and 1358/2003 and seek to maintain the status quo with regard to the provision of data by operators of airports served by commercial flights. This is achieved by making technical changes to ensure that retained legislation continues to function, including amending redundant references to the UK being a member state. A further part of this instrument, made under the European Communities Act 1972, also creates a mechanism to enforce the obligation on airports to provide data, because there is currently no penalty if an airport does not comply.
This SI was proposed as a negative instrument, but we have accepted the Secondary Legislation Scrutiny Committee’s recommendations to re-lay it using the affirmative procedure, acknowledging its concerns around the potential impact of these changes on commercial airport operators. I thank that committee for its consideration of this SI.
This draft instrument amends two pieces of EU legislation. The first of those is EU Regulation 437/2003, referred to as the statistical returns regulation, which requires operators of airports served by commercial flights to provide their member state with specified statistical data. In its existing form, the regulation specifies information that must be compiled by the member state—a function completed by the Civil Aviation Authority. It also requires that the same information must be provided to the European Commission’s statistical office, Eurostat. It further sets in place standards that must be met during the compilation and submission process. Secondly, it amends EU Regulation 1358/2003, referred to as the implementing regulation, which requires that the process set out in the statistical returns regulation is applied to a set list of airports and updates the list of statistical information that said airports must supply. The list of airports is effectively comprised of all airports that see commercial air traffic. This list included 46 airports across the UK at the point of its last update by the EU.
The withdrawal Act will retain both these regulations in their entirety. The draft instrument we are considering makes the changes necessary so that they continue to function correctly. That is essential to ensure that the regulatory regime in place continues to allow statistics on the total volumes of passengers and freight using UK airports to be compiled. The gathering of such data and the publication of derived figures are activities that are important for the Government, the public and the sector itself to be able to monitor performance.
This draft instrument amends the statistical returns regulation to remove the duty on the UK to continue to transmit this data to Eurostat. The power to collect statistical data and the obligation on respondents to provide that data are to be retained, with responsibilities for these functions given to the CAA.
This instrument amends the implementing regulation to remove the specific list of airports covered. This list is in fact superfluous, as the existing implementing regulation also contains a mechanism that sets the burden of data collection at different levels dependent on the volume of traffic seen by an individual airport. The mechanism will remain in the retained EU regulations, so that what is expected of airports will stay the same as it is now. The data collection power provided is an important tool for accessing data due to the competitive and commercially sensitive nature of the sector. As such, it is important that this legislation continues to operate after the UK has left the EU.
During the preparation of this instrument, a review of the statistical returns regulation highlighted the requirement for an enforcement mechanism in this instrument to meet the UK’s responsibility as a member state. This is why the SLSC recommended this instrument be upgraded. This instrument therefore provides a mechanism whereby the CAA can enforce the obligation on airports to provide the data specified. In determining the penalty, enforcement mechanisms in similar pieces of legislation were considered so as to not go beyond prior precedent. Consequently, the department decided to match the enforcement powers that exist within the Airport Charges Regulations 2011, with a civil penalty of up to £5,000. This part of these regulations is required regardless of final decisions on the UK’s future relationship with the EU. As I say, it is there to meet our responsibility as a member state.
The best outcome for the UK is to leave the EU with a negotiated agreement, but this instrument ensures that, in the event of a no-deal exit from the EU, statistics on the total volumes of passengers and freight using UK airports can continue to be compiled and published. I beg to move.
Lord Berkeley (Lab)
My Lords, I shall be quick. I note that in paragraph 7.2 of the Explanatory Memorandum, the Government think that,
“The gathering of such data … of derived figures are activities that are crucial for Government, the public and the sector itself to be able to monitor performance”.
However, paragraph 7.7 suggests it is no longer appropriate for any of these statistics to be given—they can be given to the Secretary of State, if he so directs—to anybody else in Europe. Why is that? Would we not want data from there? Would it not be helpful for our ongoing air services between the whole of the European Union and the UK if we exchanged this statistical data? Or will we put a ring around ourselves and pretend that Europe does not exist? Surely it would be useful—and the Government say it is useful. Why is no mention made of the CAA being able to share this information with the relevant European body?
Baroness Sugg
I thank noble Lords for their consideration of these draft regulations.
On the gathering of statistics, Eurostat oversees the European statistical system, which is comprised of EU member states and selected other countries which are not member states. Work is ongoing to determine our future relationship with the European statistical system; that is being led by the UK Statistics Authority and is subject to ongoing negotiations. Of course, sharing information brings many benefits. We will continue to participate in other statistical work in aviation through ICAO and, specifically, its aviation data programme. Although Eurostat publishes statistics based on the aviation data currently collected, this was always in duplication of the figures published by the CAA. We will continue to publish the statistics arising from the data collected and they will continue to be in the public domain. We expect to have a future relationship with Europe on data collection.
Air transport data collection is only one part of the transport data currently compiled. As I said, the Office for National Statistics has been carrying out a cross-government review on all of this. While other statistical collections were assessed as being able to continue on an existing basis, in the event of no deal we needed to bring forward the SI on this matter.
I understand the noble Baroness’s point about changing the categories and the way we collect this data. Of course, in order to make it as useful as possible, having as much consistency as possible with Europe and countries across the world is important. We do not plan to change any of the categories. We are carrying over into law what is there at the moment. Should things change in the future, whether at an international or a European level, it would of course make sense to ensure that we have continuity.
On the enforcement mechanism, the noble Lord, Lord Tunnicliffe, was not here in 1972—and I was not born in 1972—but the European Communities Act 1972 gives us the power to implement EU obligations. This is the kind of thing that the ECA provision is intended for. It is a civil penalty rather than a fine, and the Airport Charges Regulations 2011, on which the enforcement scheme and the £5,000 amount were based, are made under Section 2 of the ECA to implement a directive. It was an oversight that we did not already have a mechanism to ensure that airports reported this data; other member states do. It is an obligation on us under these regulations and there are precedents around it. There is a penalty of up to £5,000 for airport users who do not notify airport operators of their forecasts in a timely manner, for example.
I take the noble Baroness’s point that this is not an excessive amount for airports. Historically, airports have provided this data in a timely manner. It is in their own interests as well as everybody else’s. There has never been a serious case of non-response, and we do not expect there to be if we leave the European Union without a deal. It is an important tool for accessing data from across airports, so we are confident that airports will continue to comply. However, we now have the enforcement mechanism that we need on the obligations from EU law. That is why, in the event of an agreed deal, this part of the regulation will remain. Following the UK’s departure from the EU, we will need to maintain that enforcement mechanism.
In the event of no deal, this SI will also ensure that the UK’s legal framework for the collection of statistical data will continue to be fully functional and enforceable. The regulations ensure that the collection of this important data has a sound legal basis to continue, while removing the requirement on the UK to provide this data to the European Union, as we will no longer be a member state. However, as I said, we fully expect to work very closely with our European partners in the future, regardless of the outcome of the negotiations. I beg to move.
Aviation: Boeing 737 MAX 8 Jets
Baroness Sugg Excerpts(6 years, 4 months ago)
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Lord Tunnicliffe (Lab)
My Lords, I beg leave to ask a Question of which I have given private notice.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, following the tragic accident yesterday in Ethiopia, the Civil Aviation Authority is working with both the European Aviation Safety Agency and the UK operator to determine what future action may need to be taken. As more information becomes available, we will continue to consider all options to ensure the safety of our citizens here in the UK and across the globe.
Lord Tunnicliffe
My Lords, I flew the 737-200 and 300. In my day we had a rule: if it can go wrong, it will go wrong. The industry seems to have lost sight of that rule. I believe that everybody involved will be shown to be in dereliction of their duty: Boeing for pressing for a ruling that pilots did not need to be informed of the new system on cost grounds; the FAA for agreeing to it; EASA for giving in after initially opposing the Boeing position. The initial report strongly suggests that the latest crash is related. What will the Minister do? Can she explain why the Government are not taking immediate action to ground this aircraft until they have had a satisfactory explanation of the crash?
Baroness Sugg
My Lords, as the noble Lord pointed out, the investigation into the Lion Air accident is ongoing and obviously, the awful accident in Ethiopia happened only yesterday. We are working very closely with EASA, which is discussing the accident with the US Federal Aviation Administration, and any decision to ground flights is best taken at an international level. EASA, which is the validating authority, and the FAA, as the state certifying design, are best placed to take this decision, but of course, we will follow their guidance.
Lord Trefgarne (Con)
My Lords, I add my condolences to those who were tragically killed in the accident yesterday and the previous one. Can my noble friend confirm that, following Brexit, the United Kingdom’s Civil Aviation Authority will stand ready to do whatever is necessary once EASA lays down that role?
Baroness Sugg
I thank my noble friend for his question. The UK is a leader in global aviation safety and we will continue to be so regardless of the outcome of our negotiations on Europe. We want to remain a member of EASA and very much hope to do so, but I confirm that the CAA, which already carried out many safety responsibilities, is fully prepared to do so in the event of no deal.
Baroness Randerson (LD)
My Lords, the key to aviation safety is the sharing of information. Large batches of data enable the relevant safety agencies to spot trends and highlight specific problems. Yet, tomorrow, we will be discussing aviation safety regulations which, in the event of a no-deal Brexit, will cut us off from the automatic flow of information from EASA to which the Minister referred. They give powers instead to the Secretary of State, with no transparent decision-making. Forgive me if I am not brimming with confidence about that process.
There will clearly be an investigation of the safety of the Boeing 737 MAX 8 jets. It could well cross over until after Brexit. How will the Government ensure that we get full information from EASA and that we share fully our information on those planes?
Baroness Sugg
My Lords, as I said, we want to continue as a member of EASA. Safety is our priority and it is in both our interests for us to continue to be a member of EASA. Regardless of the outcome of the negotiation, we will of course continue to work very closely with our European and global partners to keep our people safe in the skies.
Lord Geddes (Con)
Can my noble friend confirm the news that I heard this morning that the black box from the aircraft has been found? If that is so, when would she expect the results of the investigation to be promulgated?
Baroness Sugg
I have seen the same reports as my noble friend. The Air Accidents Investigation Branch has offered assistance to the Ethiopian authorities. That has now been accepted and a team is now being deployed.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, the Chinese authorities have grounded all 60 of their aircraft of this type. Would she care to speculate why they have done so and whether their action is premature?
Baroness Sugg
No, I would not wish to speculate why the Chinese have taken those decisions. As I said, the CAA is in discussion with EASA on any restrictions that should be put in place, but the current position is that more information is needed to warrant any grounding decision. As I also said, these decisions are best taken internationally. We have five 737 MAX 8s registered in the UK, but 350 are flying globally. Further conversations are of course ongoing and we are keeping in close contact with both the CAA and EASA.
Lord Rogan (UUP)
My Lords, it is most unusual for two aeroplanes of the same model to crash within such a short period. Surely it would be prudent for the operation of these aircraft to be suspended until it is decided what caused these accidents.
Baroness Sugg
Following the Lion Air crash, Boeing, the manufacturer, issued an emergency safety bulletin and the FAA and EASA issued an emergency airworthiness directive. That mandated that 737 MAX 8 operators revise the flight manual and training procedures to prepare pilots to deal with the same incident that the Lion Air pilot appeared to experience. Of course, before the aircraft entered into service, the CAA conducted a safety assessment that took into account the preliminary findings from the Lion Air accident and the EASA airworthiness directive. As I said, this accident happened yesterday and we are keeping in close contact with those investigating it.
Lord Berkeley (Lab)
My Lords, most people would believe that if Boeing issued new instructions and safety rules after the Lion Air accident four months ago, they were probably defective as another accident has happened. Will we have to wait another four months before any action is taken? That seems a risky policy.
Baroness Sugg
The accident happened yesterday and obviously, we are looking carefully into what caused it. As I said, an airworthiness directive was issued and acted on. We are working closely with EASA and the FAA on any further steps we should take.
Lord Pannick (CB)
My Lords, what advice would the Minister give British citizens thinking of travelling on one of these aircraft in the near future?
Baroness Sugg
My Lords, as I said, safety is our number one priority. The Civil Aviation Authority leads the way on that for us in this country. As I also said, before any of the 737 MAX 8s entered into service, the CAA did a full safety assessment, taking into account the findings of the Lion Air accident. As noble Lords would expect, both the department and the CAA are in close contact with the operator to ensure that the aircraft are safe.
Baroness Harris of Richmond (LD)
My Lords, which companies in this country fly this aircraft?
Baroness Sugg
My Lords, one operator in this country flies them: TUI, which has five UK-registered aircraft based out of Manchester. Of course, other airlines fly those aircraft into the country; there have been around 730 such flights so far this year.
Lord Tugendhat (Con)
My Lords, does my noble friend agree that while safety must of course be the principal consideration, the confidence of air travellers is also very important? Two accidents involving a new model of aircraft in a short time is always a source of particular concern. In matters of this kind, it is usually better to err on the side of caution in taking action, or even to be premature, rather than letting things run on.
Baroness Sugg
I agree with my noble friend that it is right to err on the side of caution. The aircraft was a Boeing 737 MAX 8, as in the previous crash, and there has of course been lots of speculation as to whether there is a link. It is too early to speculate on the cause or any similarities, but that will be a line of investigation. As I said, we are working closely with our European and international partners to make sure that we are taking the correct action.
Brexit: British Airlines
Baroness Sugg Excerpts(6 years, 4 months ago)
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Lord Kirkhope of Harrogate (Con)
I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a pilot.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, last week the European Union provisionally agreed a regulation giving UK airlines the right to fly to the EU. The UK will reciprocate and provide, as a minimum, equivalent rights to airlines from European states. Taken together, these measures will ensure that flights will continue in a no-deal scenario. The department will continue to work with stakeholders across the aviation industry as we approach exit day. Leaving the EU with a deal remains the Government’s top priority.
Lord Kirkhope of Harrogate
While I am reassured by my noble friend’s reply, I am sure she will understand that there remain a number of anxieties, particularly among those who are planning to travel around Easter and afterwards, and also those in the boardrooms of a number of internationally operating airlines who need some certainty in their planning and structure. Could she make sure that these proposals are well advertised? I am also concerned about the possible effects of a no-deal scenario on non-EU international connectivity. Could she address that as well?
Baroness Sugg
I reassure my noble friend that we are speaking to airlines regularly and keeping them updated on the progress of the regulations. Of course, they are following them in detail. There will be no effect on non-EU international travel; we have 111 bilateral agreements with third countries and those will continue. We are doing what we can to mitigate any disruption that we might foresee. We do not expect there to be much disruption, assuming that the regulations pass as we expect. There may be some issues at EU airports given some changes to passport checks, but we are working very closely with those airports to ensure that we minimise disruption.
Lord Watts (Lab)
My Lords, is it not the case that this is only a 12-month deal and it will cover only the routes that currently exist? It means that British airlines will not be able to develop new routes during that period.
Baroness Sugg
There was in the original regulation a proposal for a fixed cap at 2018 levels. I am pleased to say that that is no longer the case, so there is no restriction on growth. The noble Lord is quite right that the regulation is only temporary. Overall, we continue to believe that liberal reciprocal market access is in the best interests of the EU and the UK. Should we leave without a deal, we will move swiftly to propose negotiations on that basis.
Lord Garel-Jones (Con)
My Lords, BA, along with Iberia, is part of the International Airlines Group—IAG. The head office of that company is in Madrid. Consequently, whatever restrictions might arise should not apply to British Airways.
Baroness Sugg
IAG has a very complex ownership structure, as do many airlines. This is truly an international industry. Its EU airlines will need to satisfy the EU requirements, but they have six months to do so. These EU regulations will not have any effect on BA, which is a UK airline with a UK operating licence. It will need to meet our requirements and it does so.
Baroness Randerson (LD)
My Lords, the Government have devoted a lot of taxpayers’ money to try to avoid major lorry queues around Dover. East Midlands Airport is the aviation equivalent of Dover: it is our major freight airport. The infrastructure around that airport will not be able to cope with long queues in the event of a no-deal Brexit. What assessment have the Government made of the problem in that area? What measures are they planning to put in place to avoid lorry queues and congestion around East Midlands Airport?
Baroness Sugg
The noble Baroness is right to point out the importance of East Midlands Airport for our freight capacity. In the event of no deal, the Government are designing customs arrangements in a way that ensures that goods can continue to flow. As we have made clear, we will not compromise security on the border, but keeping goods flowing is of vital importance. We are working very closely with East Midlands Airport to minimise disruption.
Lord Berkeley (Lab)
My Lords, last night in the Statement on Eurotunnel, the noble Earl, Lord Courtown, who is in his place, said that the agreement to pay Eurotunnel £33 million,
“will help to deliver an unhindered supply of vital medicines and medical devices under any Brexit scenario”.—[Official Report, 4/3/19; col. 503.]
Would it not have been better value for money to send this medicine by air freight, rather than paying Eurotunnel £33 million for nothing?
Baroness Sugg
I was wondering how that would come back to air freight. The noble Lord is right that we are considering air freight as part of our plans to ensure that we have vital medicines. Some medicines with very short half-lives will need to be carried by air freight and the Department of Health is working to ensure that that happens. The decision on the £33 million was made to guarantee that we will be able to carry essential medicines in the event of no deal.
Lord Rotherwick (Con)
My Lords, what will be the situation for UK private pilots, of which I am one—
Lord Rotherwick
I am flying here—who hold EASA licences in a no-deal Brexit scenario?
Baroness Sugg
For general aviation pilots, the UK will remain a signatory to the Convention on International Civil Aviation after EU exit. UK-registered aircraft will still be entitled to fly under the rights established by it. EASA licences, which many pilots hold, will continue to be recognised by the CAA.
Lord Bethell (Con)
Can the Minister update the House on deals for flights outside the EU? It is very helpful to hear her update on flights to Europe, but I understand that flights to the US and Canada are governed by deals connected with our membership of the EU, so can she update us on any progress on replacing these important agreements?
Baroness Sugg
As I said earlier, we have 111 bilateral air service agreements with third countries in our own right, and these will continue, but my noble friend is quite right: there are 17 third countries which we have an agreement with by virtue of our EU membership. The very able and hard-working air services negotiating team in the Department for Transport are making excellent progress on this. To date we have completed new bilateral agreements with the vast majority of these countries, which represent 98% of all passengers.
Lord Scriven (LD)
My Lords, further to my noble friend’s question about East Midlands Airport, can the Minister say what is happening regarding the potential clogging up of the M1, which is the only major way into East Midlands Airport? What specific plans are in place to ensure that the M1 does not clog up?
Baroness Sugg
My Lords, we are not expecting the M1 to clog up, but, as I have said, we are working very carefully with East Midlands Airport to ensure the smooth flowing of cargo and that this very important airport continues to function regardless of the outcome of the negotiations.
HS2: Electricity Supply
Baroness Sugg Excerpts(6 years, 4 months ago)
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Viscount Ridley (Con)
I beg leave to ask the Question in my name on the Order Paper, and refer to my interests in the register.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, HS2 will identify a suitable partner to supply electricity for the operation of the railway through a transparent and competitive process, in compliance with the Utilities Contracts Regulations 2016. HS2 Ltd is in the process of undertaking a strategic assessment of electricity sourcing options, and will produce a fully costed business case, which will then form the basis of a recommendation to the Department for Transport.
Viscount Ridley
I thank my noble friend for that encouraging reply. HS2 will have a gargantuan appetite for electricity—about 3 terawatt hours per year, or 1% of the entire UK electricity demand—costing several hundred million pounds per year. She will be aware of a recent report from KPMG to HS2 Ltd, which recommended that HS2 do a sweetheart deal with the wind industry to build new wind farms specifically to supply the railway, though not necessarily along the line, with a hidden subsidy, the cost of which would be passed on to the traveller and/or the taxpayer. Can she confirm that this would break the rules on public procurement?
Baroness Sugg
I thank my noble friend for his question and I share his desire to ensure good value for money for taxpayers and indeed passengers. The advice given in the KPMG report is that while the wholesale price for electricity is forecast to increase over the long term, the price of renewable energy is coming down, so it recommended signing a long-term contract for the supply of renewable electricity. I should reiterate that the report represents only advice to HS2. No decision has been made and, before any contract is signed, HS2 will need to present the proposed energy strategy to the DfT. Whatever strategy is agreed, HS2 Ltd will be required to demonstrate that it has complied with the Utilities Contracts Regulations 2016.
Lord Rosser (Lab)
My Lords, this Question highlights the fact that HS2 will be an electrified railway, which is much more environmentally friendly and cheaper to operate than a diesel line. The Government have recently abandoned or deferred major mainline railway electrification projects. Will they now restore those projects and put them on the same footing, electrification-wise, as HS2? Further, will they confirm that they will proceed with HS2 north of Birmingham to Manchester and Leeds?
Baroness Sugg
My Lords, we have had to take some difficult decisions on electrification, which we are bringing forward where it is in the interests of passengers. I confirm that we are absolutely committed to continuing HS2 north of Birmingham. It is going to bring great connectivity to our great cities of the north.
Lord Framlingham (Con)
My Lords, there is growing hope and, dare I say, even expectation that the Government will eventually scrap this hundred-billion pound vanity project and spend the money on railways throughout the rest of the country. In the meantime, money is haemorrhaging away and the lives of people along the route are being ruined by this scheme. Can I urge the Minister to try to persuade her colleagues to come to a decision and make an announcement as soon as they possibly can?
Baroness Sugg
My Lords, I am sorry to dash my noble friend’s hopes but we remain committed to phases 1, 2a and 2b of HS2. As I have said, it will improve connectivity across our country. Our railways are full, with the doubling of passenger numbers since privatisation, and it is essential that we build a new line to allow space on other rail lines and thus improve things for passengers.
Baroness Randerson (LD)
My Lords, I am pleased to hear the Government’s continued support for HS2, but the department which failed to set up a contract to deliver a few extra ferries is unlikely to inspire public confidence in the management of big projects. How are the Government ensuring that every aspect of the HS2 costings is re-examined and questioned so that we can be confident that it is good value for money?
Baroness Sugg
My Lords, I agree with the noble Baroness that we have to ensure that the project is good value, because £55.7 billion is a lot of money. The full business case is planned for later this year, and that will reassess the phase 1 scheme against the standard business-case criteria. That business case will provide an updated benefit-cost ratio for the phase 1 scheme.
Lord Watts (Lab)
My Lords, when are the Government going to kill this white elephant off and switch the funding to rail schemes around the country that are starved of investment?
Baroness Sugg
My Lords, if I have not made it clear already, we are committed to HS2. As well as the £55.7 billion investment we are making in HS2, we are spending record amounts on the rest of our railways— £48 billion over the next five years.
Baroness Jones of Moulsecoomb (GP)
My Lords, a lot of people understand that HS2 is a complete folly. Having said that, if it is going to go ahead, the Wildlife Trusts have had an excellent idea to give the project at least some green credentials. It is that green wildlife spaces should be set up, reaching a mile on either side of the railway, with green bridges to not only enable wildlife to travel through Britain but also to provide recreational opportunities for people.
Baroness Sugg
I agree with the noble Baroness that this project will help to improve the environmental record of our travel, by ensuring that people travel using high-speed rail rather than roads. That will be a benefit. I have seen the plans for the green spaces and green bridges. HS2 is committed to environmentally friendly practices including woodland areas, and is considering those plans carefully.
Lord Grocott (Lab)
Does the Minister share my concern or perhaps she even recognises the inevitable: many sections of the House are following a long tradition of this House in opposing the building of railways anywhere and at any time. beginning with the London to Birmingham railway in 1830? Can she assure us that this investment, which is essential to the people of the Midlands, will go ahead, especially in view of the fact that there never seems to be anything like the same level of objection to hugely expensive schemes such as Crossrail in London—which I also support? They appear to go ahead much more easily than anything which might benefit the Midlands.
Baroness Sugg
My Lords, the last time we built new rail links to the centres of our great northern cities Queen Victoria was on the throne, and I entirely agree that it is high time we built more. When HS2 is up and running, by 2033, up to 18 trains will run each hour, carrying up to 1,100 passengers each and serving 100 million passengers each year. This investment will continue.
Air Traffic Management (Amendment etc.) (EU Exit) Regulations 2019
Baroness Sugg Excerpts(6 years, 4 months ago)
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Baroness Sugg
That the draft Regulations laid before the House on 28 January be approved.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, this draft instrument will be made using powers in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union in March without a deal. It amends single European sky legislation, the four basic regulations which provide the framework for EU air traffic management regulation, and the implementing regulations which set out the more detailed requirements.
The implementing regulations cover air traffic management interoperability: the manner in which the UK works with other states to deliver air navigation services; the organisation of airspace; the safety and oversight of air navigation services; new technology and how it is to be used; and a system of performance and economic regulation for air navigation services. The single European sky legislation supports the EU initiative to improve the efficiency of air navigation services while maintaining safety within the European air traffic management system. The delivery of air navigation services is vital to ensure that congested airspace can be used safely and efficiently. The services regulated by the single European sky legislation support air traffic growth by ensuring the safe separation of aircraft. If these services are not provided in an efficient way, it can cause considerable delays, with resultant costs and disruption to airlines and passengers.
This draft instrument will ensure that the effective regulation of air traffic management arrangements in the UK continues in the event of no deal. It addresses areas where retained EU law will no longer function effectively after leaving the EU. It does this by removing governance and oversight roles of EU bodies that cannot be performed by the UK after exit and assigning them instead to the Secretary of State or the Civil Aviation Authority, and by removing regulatory tools where there is already satisfactory UK legislation. Where possible, roles currently undertaken by the European Commission and EU bodies are being transferred to the Secretary of State or the Civil Aviation Authority, but where they relate to pan-European functions, including air navigation services delivered by more than one state, they are being removed.
The instrument includes arrangements to recognise EU-based certifications and authorisations existing immediately before exit day. For example, EU air navigation service providers operating in the UK that have certificates issued prior to exit day will continue to have their certificates recognised by the CAA, which will allow them to continue to provide services in some parts of UK airspace. These certifications and authorisations will be preserved for a maximum two-year period, subject to any earlier expiry or termination, which will provide continuity until another agreement is reached with the EU on these issues.
The single European sky legislation includes a regulatory framework for the development and deployment of new technology and ways of using it: the Single European Sky Air Traffic Management Research programme, or SESAR. In the event of no deal, the UK will not be able to participate in or legislate for SESAR governance arrangements. We are, however, retaining requirements for the deployment of new technology arising from SESAR for the UK’s air navigation service provider, NATS, and some UK airports, to ensure that UK arrangements are modernised in line with those of the EU and that interoperability is retained.
The instrument also ensures that the UK can continue to comply with its international obligations, such as those set out under the Chicago convention, which governs international civil aviation. This is done by retaining regulations that currently dictate how we comply with the standards and recommended practices—SARPs—adopted by the International Civil Aviation Organization under that convention.
Again, the best outcome is for the UK to leave with a negotiated deal, and delivering that deal remains the Government’s top priority but, as a responsible Government, we must make all reasonable plans to prepare for a no-deal scenario. The instrument maintains the existing regulatory framework and technical requirements for air traffic management to ensure the continued provision of efficient, safe air navigation services and the effective regulation of the UK air traffic management system, as well as to maintain interoperability between the UK and the EU after the UK exits the EU. This instrument also ensures that in the event of a no-deal exit from the EU, the UK has effective regulatory arrangements for the UK’s air traffic management system and that the aviation industry—in particular, the CAA and NATS—has clarity about the regulatory framework which would be in place in that scenario. I beg to move.
Baroness Randerson (LD)
My Lords, no SI better epitomises the efforts of the Government to force us into splendid isolation. Anyone who has studied history at any time will remember that 19th-century concept of British diplomacy—which got us precisely nowhere in the end.
Modern air traffic management is based on a complex network of international treaties, organisations, protocols and rules that has built up over many years in the interests of safety, efficiency and limiting the environmental impact of aviation. I welcome the fact that just for once, under the section in the Explanatory Memorandum on consultation, there is reference to a specific view of stakeholders. It might have been a limited consultation, but we have a report that they want continuity of the regulatory framework—well, of course. Despite this, this SI is full of efforts to shoehorn the necessary changes into the existing approach. However much there are attempts to continue as normal, there will be significant changes.
There are several issues I want to raise. First, paragraph 7.3 of the Explanatory Memorandum states that some powers now held by the EU will come to the Secretary of State and some to the CAA, but air navigation services delivered by more than one state are simply being removed by this SI. Surely this will lead to a dangerous lack of co-ordination. Will the Minister explain what will happen in that yawning gap once the EU powers are removed?
Paragraph 7.9 states:
“The UK will remain a contracting State of Eurocontrol”.
Eurocontrol is an intergovernmental organisation regulated by the EU. I realise that membership of this organisation is essential for the interoperability of air navigation systems, but I was quite surprised to see that we are going to remain a member, given that the EU has powers over it. Has the Minister explained this to her colleagues who are in favour of leaving the EU? The compromise appears to be that we will accept the rules of Eurocontrol, but will be unable to participate in its governance. That seems a pretty poor deal, but I appreciate that we have no choice but to remain a member.
I have a question on functional airspace blocks, or FABs. They do not follow state boundaries, and we share an FAB with Ireland. My recollection is that a large proportion of Atlantic air traffic passes through that FAB. After Brexit, we will have no legal basis to participate in the FAB and in future, any involvement —so the Explanatory Memorandum states—will be discretionary. However, there is no word in the EM about what the Government would like to do. Is it their intention to try to remain a member of the joint functional airspace block with Ireland, and will leaving it be something they do only unwillingly, if forced? There is nothing in the Explanatory Memorandum about Ireland if we cease to participate. We are looking here at the splintering of the co-ordination on airspace functioning, and I believe that it would have a very serious impact on Ireland if we ceased to participate.
Lord Rosser (Lab)
Again, I thank the Minister for explaining the purpose of this SI. As before, some of the points that I wanted to raise were touched on by the noble Baroness, Lady Randerson.
The first relates to paragraph 7.3 of the Explanatory Memorandum, to which the noble Baroness referred—particularly the reference to,
“pan-European functions including ANS delivered by more than one State … being removed”.
I, too, would like to know the actual impact of that. Does it compromise safety in any way, and what does it mean in practical terms from our point of view as a nation?
Paragraph 7.9 refers to Eurocontrol, which it says is,
“an intergovernmental organisation that provides some ANS for its member States”.
It says:
“It is not an EU body but it has been designated as the”,
single European sky,
“Network Manager and is regulated by the EU where it provides services to EU Member States. The UK will remain a contracting State of Eurocontrol after it leaves the EU and will still be able to receive its services as a contracting party to the Eurocontrol Convention”.
Can the Minister explain the exact impact of that on us, bearing in mind that it is designated as the single European sky network manager and we will no longer be part of the EU? What does it mean for us as far as regulation is concerned? Presumably it does not leave everything exactly the same as it is now, but at the moment I am struggling to identify precisely what the change might be. Any assistance that the Minister can give on that will be appreciated.
Paragraph 7.12 talks about the network manager role. It says:
“These functions pre-date the EU exercising its competence for ANS and the UK would still be able to access Eurocontrol’s wider network management role as a contracting State of the Eurocontrol Convention”.
However, it then says:
“This instrument will amend the preserved SES Legislation relating to airspace in an operable form, but the UK will be unable to participate in EU governance arrangements of the SES Network Manager”.
What will our Government’s arrangements for the network manager be? If Eurocontrol is the SES network manager and that no longer applies to us, am I right in saying that we have to set up some sort of similar arrangement, or have I misunderstood exactly what this means and what its implications are?
As the noble Baroness, Lady Randerson, has already said, paragraph 7.13, which talks about functional airspace blocks, refers to the fact that the UK formed an FAB with the Republic of Ireland in 2009. Paragraph 7.14 then goes on to say:
“The legislation establishing FABs will not be retained in the SES EU Exit Regulations. As a non-Member State after exiting the EU, the UK will have no legal basis to participate in a FAB”.
My question is not dissimilar to that posed by the noble Baroness, Lady Randerson. I simply ask: if we are no longer able to participate in an FAB but have one with the Republic of Ireland, what will the impact of this be on 29 March under a no-deal Brexit? What exactly does it mean and what are its implications? Do we have an FAB only with the Republic of Ireland or do we have a number of others and, if so, what is the impact on, or implication for, those further FABs?
The document also refers in paragraph 7.16 to changes being made in the SI,
“so that the Member State functions in the regulation are retained and instead carried out by the CAA who will now oversee the implementation of the regulation”—
that is, these regulations. Bearing in mind that it specifically refers to a change being made in the SI, is this the only such change of significance in it or are there others that perhaps might not have been highlighted in the same way?
Paragraph 7.19, on the subject of ATM safety, refers to the fact that the,
“SES Legislation relating to safety forms our current mechanism … so that legislation will need to be preserved in UK law in an operable form to maintain continuity in safety. In doing this we are giving some oversight functions to the CAA which were previously for EASA”.
Am I right in saying that this means an additional interface on safety issues? If I am right, does the Minister agree that that is hardly a desirable development, since the more interfaces you have over safety, presumably potentially—I stress “potentially”—the more difficult safety issues can become? It would be helpful to have the Minister’s comments on that issue.
The Minister referred in her introduction to the SESAR programme, which is the single European sky air travel management research programme. Paragraph 7.25 of the Explanatory Memorandum says that,
“the SESAR Joint Undertaking (SJU) was set up under a Council Regulation to manage”,
the research and development programme. The paragraph goes on to say:
“As the UK will no longer be able to participate in the SJU after leaving the EU the Council Regulation setting up the SJU will be revoked”.
What exactly are the potential consequences of this as far as research and development are concerned? I believe the Minister said that we have played an active role within it. Will we inevitably be able to play only a less active role? From our point of view, is there likely to be less involvement in research and development programmes?
Perhaps the Minister can confirm—I am sure there will be no difficulty, since the Minister in the Commons has already said so—that on SESAR funding, if there is a no-deal exit the Government will underwrite what would have been paid to the UK under the current arrangements, to provide certainty and continuity for those involved. Paragraph 7.26 indicates that the pilot common project will continue, saying that there will be,
“legislation to require UK project participants who have been implementing it since 2014 to complete the delivery of projects which will maintain interoperability with the UK’s neighbouring States”.
Presumably, the fact that it refers to one project suggests that withdrawing in this way means that there will be other projects with which we will not continue, or will not get involved when they commence. Perhaps the Minister could confirm whether I am right; that hardly seems a desirable situation.
I turn to paragraph 10 on “Consultation outcome” and ask once again: were the trade unions involved in the consultation? References are made to various stakeholders. I do not know whether that includes the trade unions but, again, I would like to know the answer to that question. The noble Baroness, Lady Randerson, mentioned that the consultation paragraph refers to a view among stakeholders supporting,
“continuity in terms of the regulatory framework for ATM after the UK leaves”,
the European Union. The paragraph ends:
“The preparation of the instrument also takes account of representations from operational stakeholders on the impacts of the UK leaving the EU or ATM and ANS including from NATS, the UK’s en route air traffic services provider”.
Can the Minister tell us what those representations were? Were they simply representations in relation to continuity or were other matters taken into account in preparing this instrument? If so, in what way does the instrument reflect those further representations?
Baroness Sugg
I thank noble Lords for their consideration of these draft regulations and turn to some of the questions raised. On participation in the UK-Ireland functional airspace block—the FAB—it is currently the only FAB we are part of but, in the event of no deal, there would be no legal basis for the UK to continue to participate in it; nor could we compel Ireland to be part of it, so we have not been able to retain this part of the single European sky legislation in the SI. There is a possibility that EU states could involve neighbouring third countries in their functional airspace blocks and future UK involvement as a third country would be discretionary.
Co-ordination and co-operation with Ireland will of course continue, as both states are members of the international inter-government organisation Eurocontrol and, indeed, ICAO; both the UK and Ireland are delegated by ICAO to provide air traffic services in parts of the north Atlantic. The noble Baroness is quite right to point out that 80% of traffic entering or leaving the EU from the north Atlantic flies through that airspace, so it is imperative that we work together on this.
Baroness Sugg
I am afraid that I do not have a specific figure. Future funding is under consideration as part of our wider airspace modernisation project. That will be looked at through the CAA, which has a contingency fund for airspace modernisation costs, including the deployment of new technology.
It is important to reiterate that the safety of airspace will not be jeopardised after we leave the EU. This SI, along with the aviation safety SI which has been laid and will be debated in the coming weeks, will ensure that we have the same high safety standards. Air traffic controllers will continue to be licensed by the CAA and relevant EASA regulations will be saved in national law to ensure that those safety standards remain.
On the pilot common project, UK industry has been involved in the governance to shape the scale and costs of SESAR deployment projects. The future deployment of new technology would need UK legislation under the Civil Aviation Act 1982.
The noble Baroness, Lady Randerson, asked about military and commercial use. The military is excluded from the single European sky legislation. The flexible use of airspace is about using airspace reserved for the military when the military does not need to use it. It is not strictly about regulating the military, as such, but rules will be transferred into UK law through the statutory instrument which will continue to oversee them.
NATS is currently the UK’s en route air navigation services provider and will continue in that role; there will be no difference. On the question of what will replace the SESAR programme when the UK leaves the EU, the level of participation in SESAR remains a matter for negotiation. We firmly believe that it is in the best interests of the UK and indeed of the EU to maintain close co-operation, but it is likely that UK industry will no longer be able to receive EU funding for SESAR deployment. As I said, the Government have committed to cover the costs of that.
I hope that I have answered all the questions. If I have missed any, I will follow up in writing. This SI, and others to be debated in the coming weeks, are a key part of ensuring that we have a functioning statute book for aviation should we leave the European Union without a deal. It will make sure that, in the event of no deal, the UK has effective regulatory arrangements for our air traffic management system, and that the aviation industry, the CAA and NATS, have clarity about the regulatory framework.
Lord Whitty (Lab)
My Lords, I do not think that the Minister answered my noble friend Lord Rosser’s question on this instrument, or the previous one, about consultation with the trade unions. As she is aware, I am the vice-president of BALPA.
Baroness Sugg
My apologies for not answering that question. We meet BALPA regularly to discuss a variety of issues, including Brexit. I cannot recall discussing this specific SI with BALPA but it is incredibly important that, as we develop these SIs, we take into account industry’s needs, our regulators’ needs and of course trade union needs.