Air Passenger Rights and Air Travel Organisers’ Licensing (Amendment) (EU Exit) Regulations 2018

Debate between Baroness Sugg and Lord Warner

Tuesday 12th February 2019 Lords Chamber

[Baroness Sugg]

Each member state has its own version of ATOL, and the companies which sell in that member state are obliged to follow it. In the event of no deal, there will not be mutual recognition; that is simply one of the consequences of no deal. Those companies will be covered by the EU regulations. I said that no one is affected, but some of the companies which sell into the UK will need to get an ATOL licence. However, for air carriers, airports and passengers, there is no change to the routes on which the regulations apply. After exit day, in the event of no deal, the combined scope of UK and EU legislation on air passenger rights will be the same as under the current EU regulation. I hope that is a slightly simpler explanation than the one in my opening speech.

My noble friend Lord Balfe is right that, in the event of no deal, this simply takes a snapshot in time. I agree with him and the noble Baroness, Lady Randerson, that what happens in the EU in future will affect the UK, whether that is a change in currency exchange or EU law. However, that is something for the future; it may well depend on a future aviation agreement, if we end up with no deal. I am afraid I cannot predict the future, so I cannot say how we may respond to any future change in EU law. What I can say is that this statutory instrument does not contain any powers to make further SIs, and any future changes are likely to require primary legislation and would therefore have sufficient parliamentary scrutiny. However, I take the noble Baroness’s point that changes in the EU regime will have an effect on us.

On the issue of confidence in booking flights, we are completely focused on ensuring that there is no disruption of aviation, as this would be in nobody’s interest. In our technical notices last summer, we confirmed that we envisage granting permits to EU carriers to operate in the UK, and we have seen the EU take similar steps to avoid disruption. There were Commission communications on the EU’s preparedness in November and it has said it intends to bring forward measures to allow UK air carriers to continue to fly to the EU. Most recently, this includes its no-deal contingency plan, which was published on 19 December. Detailed EU regulations are being discussed in the Parliament and the Council at the moment. We welcome those proposals, which will ensure that flights between the UK and the EU are maintained. There are a number of pieces of clear evidence that both sides in aviation are determined to ensure we maintain air connectivity.

We work very closely with the aviation industry, which shares our confidence that arrangements will be in place to avoid disruption to flights. I take the point from the noble Lord, Lord Adonis, that many conversations about aviation—those that he has had and those that others will have in future—take place at a European level and, indeed, an international level, at ICAO. We hope to continue our close relationship on aviation with all our European partners, regardless of how we leave the European Union.

On the noble Lord’s point about consultation, the noble Lord, Lord Berkeley, was quite right to say that the same text is used here and in the next SI. As you would expect, I meet people from across the aviation sector very regularly, whether from airlines, airports or industry groups such as the Airport Operators Association and Airlines UK. We have not had meetings specifically about single SIs—there are quite a few of them—but we are discussing our SI programme with the aviation sector and sharing our plans with it. Throughout our SI programme, and certainly in aviation, we are replicating the current situation so that there will be no change. The compensation is perhaps not universally popular among our airlines, but they accept that the important thing is to maintain continuity, so that passengers and airlines understand what will happen. That is what we have been trying to do.

On communications, I agree with the noble Lords, Lord McNally and Lord Warner, that it is really important that we keep consumers informed. The noble Lord, Lord Adonis, highlighted one of those adverts on Spotify; there are others. We have a cross-government campaign putting out the information that is available on GOV.UK, and we are also working very closely with airlines and consumer groups to ensure that the right information is available. For example, Thomas Cook has a very good Q&A section around Brexit on its website. We are trying—

[Lord Warner]

I am grateful to the Minister for giving way. Just to go back to my earlier exchanges with the noble Lord, Lord Adonis, the government website seems to be telling people to be careful about making bookings after 30 March. However, in this debate the Minister is spreading balm and harmony about the fact that people would not have any of their rights and protections diminished. If there is no diminution of rights and protections, why does the Government’s website urge people to be careful about making bookings after 30 March?

[Baroness Sugg]

I am not sure that the Government’s website uses the word “careful”. As I said, we are confident that flights will be maintained. There is an EU regulation going through the EU Parliament and EU Council at the moment to confirm that. In the same way that this statutory instrument has not yet been passed, that regulation has still not been passed. We are confident that flights will continue, but we say that customers should contact their air carrier and check their terms and conditions in order to ensure they are fully aware of all the information that they need.

On the rights and protections, as I have said, this SI continues them; we are confident that, should noble Lords choose to pass it, we will be able in the event of no deal to ensure that consumers still have the same protections.

While we are working to agree a deal with the EU that is supported by Parliament, we think it is responsible to continue to make preparations in the absence of an agreement so that there is a functioning statute book. This SI, and the others that we will debate later and in the coming weeks, are a key part of those preparations. Both the UK and the EU have set out their clear intention to put in place arrangements to ensure that planes can continue to fly to and from the EU in the event of a no-deal exit. Both sides want to avoid any disruption to flights, as that would be in no one’s interests.

Our contingency preparations, of which these regulations are just one element, should provide reassurance to industry and consumers that, even in the event of no deal, passengers will continue to benefit from the same rights as they currently do. They ensure that our legal and regulatory framework for aviation is set up for flights to continue, whatever the outcome of negotiations. I beg to move.