(3 years, 6 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the report by Transport Focus Fairer fares: the future of rail commuting, published on 18 August 2020, in particular the recommendation to trial flexi-season tickets and other marketing initiatives to encourage rail travel as Covid-19 restrictions are lifted; and what discussions they have had with railway operators about conducting such trials.
My Lords, the Government welcome the Transport Focus report on the future of rail commuting post Covid. We are working closely with the industry on a range of initiatives to benefit the passenger, including looking at solutions that offer better value and convenience for those who commute flexibly.
My Lords, I am grateful to the Minister for that response, but to press her a little further, has the Department for Transport actually received proposals from the train operating companies to promote flexible fares to encourage passengers, including less frequent commuters, to return? Will the department allow any of the train operators which want to implement trials of such options to do so?
The Government proactively asked the train operating companies to come up with ideas for fares and other innovative passenger-led solutions as we come out of Covid. At the moment, we are building the evidence base to support the proposals—for example, on flexible season tickets—and assessing the potential commercial impact of these new products. How they are to be implemented will be published in due course.
My Lords, does the Minister agree that even before the pandemic, we were seeing big changes in working patterns? A growing proportion of the working population no longer expect to go to the workplace five days a week. Does she accept that the Government need to show more leadership here so that we can move on from ticketing systems that reflect the work patterns of the 1950s?
My Lords, I believe the Government are showing leadership on this issue, which is precisely why we proactively approached the train operating companies and made it absolutely clear to them that, going forward, we are going to see a very different type of train system—one that is really focused on the passenger and that provides punctual and reliable train services, but at a price that is fair to the taxpayer and the passenger.
My Lords, the Minister referred to the Government looking at a number of solutions. Will she indicate whether those solutions include enhanced ventilation systems and particle filtration—and, ideally, air disinfection protection measures—as part of the means to encourage people to use the trains in a safe manner?
The noble Baroness is quite right; the one thing we are going to have to do to get people back on to the railways—indeed, the public transport system as a whole—is to improve passenger confidence in the system. One way to do that is to be at the forefront of being able to provide the most up-to-date air filtration systems and secure the best enhanced cleaning contracts.
My Lords, noble Lords may have wonderful, imaginative ideas for playing around with fares, and there may indeed be a commercial case for flexible season tickets, but does my noble friend agree that the future of the railways is best secured if they maximise their own revenues and that the fundamental purpose of commuter fares and season tickets must therefore always be, as with airlines, to increase yields to the railways, thus saving expense for the taxpayer?
I somewhat agree with my noble friend in that, if this were being done in purely commercial terms, that would be the case, and we certainly want to minimise the amount of subsidy from the taxpayer where appropriate. However, the state might also want to intervene for other reasons and use pricing levers; for example, to encourage modal shift and get people out of their cars and on to the rail, particularly for certain types of journeys, and that might include commuting.
My Lords, the roads are congested and the trains are empty. Does the Minister accept that, as this report shows, passengers will return to the railways only if there is reform and modernisation of ticketing that offers better value for money? As the Government now control the railways, does she accept that the Government need a greater sense of urgency in this modernisation?
I am afraid the Government do not accept that. We are undertaking rail reform. As the noble Baroness will know, now is probably not the right time to do it, in the midst of a pandemic, but as the course of the pandemic becomes much clearer, we will continue to work, as we have done for quite a while now, with Keith Williams on his root and branch review. We remain in close contact with him and he fully supports the ERMAs we have put in recently. The noble Baroness also said that the roads are congested. I do not know whether she has been outside recently, but they are not.
My Lords, any trial flexi-season ticket system needs government approval before it can start. Can my noble friend say whether she is looking at a national scheme with common rules, to avoid complexity, or whether each individual franchise will develop its own scheme? Will she ensure that any new scheme will be contactless, in order to keep down costs and save time?
My noble friend is trying to push me a little further every time. I cannot say whether it will be a national scheme or whether we will have competitive schemes from different rail operators. Certainly, a national scheme would be simpler for the passenger, so each option will have advantages and disadvantages. We are looking at those at this time. Smart ticketing, which I think is the digital solution that my noble friend refers to, is at the heart of what we want to achieve. We really need to get to a stage where we do not have paper tickets; we must have smart ticketing systems that can cope with season tickets or, indeed, any ticket at all.
My Lords, in this part of mid-Wales, just about the only way for many people to get to Birmingham, Manchester or London is to take the beautiful Heart of Wales line, which then goes up to Manchester. The problem, as I see it, quite apart from the fact that you sometimes have to flag down the train or tell the driver when you want to get off—not an intercity problem—is that the fares and timetable are not always co-ordinated to allow an affordable way of commuting to these cities. Will the Government look at this when they are talking to the companies? Indeed, will they talk to their own people about how we could make this work better?
Train services and fares are, of course, devolved in Wales, but I recognise the noble Lord’s point about passengers who want to go from Wales to England for work, for example. I encourage him to raise this issue with Sir Peter Hendy in his union connectivity review, because it is really important for people who need to travel for employment reasons that the means of travel are there in terms of the services, but also that the fares fit as well.
First, how will the pending increase in fares encourage people back on to our trains, bearing in mind that much passenger business is optional leisure travel, and commuter traffic will become more price-sensitive as home working for at least part of the week is likely to become a permanent option for many? Secondly, if cheaper fare promotions are going to be used to encourage people back on to our trains, who, under the present contractual arrangements between the Government and the train operating companies, will have the final say on what those cheap fare promotions will be: the Government or the train operating companies?
The recent increase in fares was 2.6%, 1% below inflation. This is the lowest increase for four years. In addition, the Government delayed the increase by two months to 1 March. But it is case that taxpayers have been spectacularly generous to the railways in terms of support over the Covid period. We must ensure that there is a good balance between the taxpayer and the passenger, so we are content with a small increase in regulated rail fares. On the potential schemes and other measures that may be put in place, the Government will be working very closely with the train operating companies. All ideas are welcome, and when it is time to get people back on to public transport, we will put those in place.
My Lords, the recent pulling of the funding by the Government for Transport for the North’s scheme for smart ticketing across the north of England seems extraordinary in view of what the Minister has already said. Is this not a blow for the railway across the north of England and an indication that “levelling up” is no more than a slogan and has no substance? Will the Minister go away and get this reversed?
Not at all: TfN was allocated £150 million at the 2015 spending review for this integrated and smart travel programme. It was always the case that that funding was going to expire at the end of the current financial year. To date, TfN has managed to spend £24 million, and that is a good start, but we are now considering how best to deliver more effectively—and perhaps more quickly—a rollout of smart ticketing to improve passenger services across the north.
My Lords, the time allowed for this Question has elapsed and I apologise to the two noble Lords who were not able to be called.
(3 years, 6 months ago)
Lords ChamberMy Lords, the Government have been working closely with the logistics industry over a number of years to understand and minimise the potential impacts of transition, updating assumptions and refining the Government’s policy and support as new information has become available. In response, we have rolled out a multimillion-pound haulier communications campaign and opened 46 information and advice sites around the UK.
My Lords, the Government refuse to properly fund the essential new border infrastructure at our ports to minimise delays caused by the new Brexit red tape. Does the Minister accept the massive impact this is having on the haulage industry and on import and export businesses generally? Can she explain why the Government are not fully funding the border changes needed to reduce delays?
I am struggling to understand the evidence behind the noble Baroness’s question. On the funding side, the Government have made available up to £200 million from the Port Infrastructure Fund, which was set aside and given to ports specifically for the things that she has outlined. On the customs side, the Government have made available up to £80 million of support for IT training and recruitment. She talks about delays for hauliers but there are very few such delays at the moment, as the empty car parks in Kent will attest.
My Lords, the Minister has just said that there are very few traffic delays at the moment going to Dover, so when did the Government decide to build a third inland border facility—called White Cliffs, although of course it is nowhere near the white cliffs—on a 100-acre greenfield site on the A20? Why were residents only told about this by a ministerial letter on 31 December? Will the noble Baroness confirm that the Government will commission a full environmental impact assessment before submitting a planning application—to themselves, in this case? Why is it necessary to have a third one when there are two already apparently empty ones on the M20?
My Lords, the site to which the noble Lord refers is indeed called White Cliffs. It is not a traffic management site and is not intended to be so. It will have capacity for up to 1,200 HGVs for maybe up to five years and will serve two functions: first, for customs checks, and, secondly, for sanitary and phytosanitary checks, which are undertaken by Defra. At the moment there is a statutory engagement period for the site: it started on 13 January and closes on 10 February, and I encourage all members of the local community to respond to it so that they can have their say.
My Lords, what is the daily flow of HGVs on to ferries and the shuttle compared with last year? Is there evidence that HGVs are diverting to other ports—for example, on the east coast—or direct to Ireland?
Freight flows are returning to normal, having suffered a significant reduction over the Christmas period when Covid testing was introduced. I can assure the noble Lord that on the outbound we are basically at around 85% of flows from last year, while on the inbound we are at 95% of flows from last year. There has been some change with hauliers seeking other routes because they may be more convenient, but nothing that we would not have expected.
My Lords, does the Minister agree that we have the solution and we have the technology—distributed ledger, AI, internet of things, all elements of the fourth industrial revolution, many of which Great Britain is at the leading edge of? I was involved with the reducing friction in international trade project, whose proof of concept was cited in the new border strategy—on page 40, just for interest. Will my noble friend tell the House that the Government are doing everything to ensure that we are looking at all elements of technology in order to have the best border in the world—if you will, the “white cliffs of technology”?
I reassure my noble friend that of course we look at all possible technological interventions. Three end-to-end systems have been put in place to assist industry with all the new requirements. They are working well and are helping traders. We look at all possible technologies in order to develop friction-free trade as much as possible.
My Lords, the Road Haulage Association says that before Brexit around 18% of lorries delivering from the EU to the UK returned empty. They say that figure has now risen to around 50%. Apart from the difficulties that that implies for UK exporters, it is clearly at odds with ambitions to mitigate climate change. How will the Minister reduce the number of journeys by empty lorries?
It is the case that some lorries return empty. The noble Baroness quoted a figure of 50% but the Government’s figures are actually 30%. That is a bit higher than it has been in the past but over the coming weeks and months the haulage system in general will readjust, particularly in terms of the requirements of the trade and co-operation agreement regarding cabotage and cross-trade. I would expect to see fewer empty lorries going back.
My Lords, there are repeated reports of UK companies switching and looking to switch at least part of their operations to countries inside the EU in order to overcome additional regulations, customs checks and costs of transporting goods to the EU following our departure from it. Is this a development that the Government are encouraging and supporting, despite the potential adverse impact on jobs, economic activity—including the logistics industry—and tax revenue in the UK?
I think the noble Lord is referring to some individual anecdotes. We are not aware that this is part of a systematic picture of a substantial shift. The vast majority of traders within Great Britain and Northern Ireland are ready to meet the new requirements at the border and are trading successfully.
My Lords, the British Ports Association is reporting that its members are telling it that the current rules are constantly changing and highly complex. They are also saying that guidance is not forthcoming for exporters and that they are unable to get answers from government officials. When might they expect this situation to improve?
All information related to trading with the EU is published on the GOV.UK website. In the first three weeks of January there were 3.35 million visits to transition content and 470,000 visits to business pages specifically. The Government have published a haulier handbook in 14 languages specifically for hauliers. I am sure that noble Lords will have seen that a haulier handbook focusing specifically on Northern Ireland was published today.
Lord Taylor of Warwick? No? Then I call the noble Baroness, Lady McIntosh of Pickering.
My Lords, does my noble friend share my concern that the reason there are no queues at ports in relation to farm goods and fish products is because many of them are stuck on the continental port side? We have 100,000 pigs still stuck on farms, poultry is down by 20%, and the fish scenario will be familiar to her. What efforts can the Government make to ensure that these products can reach the ports, whether they are northern, east coast or southern coast ports, so that they can access the European market as quickly as possible?
We recognise the need to continue working closely with businesses and certifiers as they adapt to the new requirements. It is vital that traders ensure that UK hauliers have the correct paperwork for new animal and animal product checks when they cross the EU border. There is extensive advice and support available. There has been relatively little disruption at the border so far, but we are seeing regulations interpreted in different ways by member states. The Government are working incredibly hard to address these differentials with those member states.
My Lords, is the Minister aware that it is more economical for companies in Northern Ireland to ship goods via sea from Rosslare in the Republic of Ireland to Zeebrugge, a journey of 38.5 hours, than via the UK land bridge to Calais, a journey taking 10 hours? This has a knock-on impact on investment and jobs in Liverpool and Folkestone and compounds the pressure on Eurotunnel. What can be done to remedy this situation?
I am not entirely sure why a journey of 10 hours would be worse than a journey of 38 hours. Some hauliers will decide to go by other routes, certainly; however, we are not seeing a large-scale shift. Given that there are no delays at the border at the moment, we expect many of those hauliers to return.
My Lords, the time allowed for this Question has now elapsed.
(3 years, 6 months ago)
Lords ChamberIn moving that the Bill do now pass, I shall make some brief observations and reflect on its passage. At the outset, I thank the noble Lord, Lord Tunnicliffe, for his patience, focus and good humour in scrutinising the Bill, and the noble Baroness, Lady Randerson, for her very valued input. I also thank the cadre of noble Lords who showed a particular interest in this very important Bill and shared so much of their experience and wisdom in scrutinising it. Contributions and questions from all sides were thorough and searching. We listened to concerns and made changes where needed, and we have a better Bill for it.
The Bill has had a rather longer gestation than I would have liked, but that was to be expected in the circumstances. Having been introduced to your Lordships’ House in January 2020, it entered an unprecedented period which has thrown numerous challenges at the Bill and, of course, the aviation industry. However, the Government are clear that the powers in the Bill remain critical, even in the current Covid-19 context. The need to modernise the UK’s airspace has not changed, and the Bill will help reduce aircraft noise, reduce traffic delays and support the aviation industry’s recovery and growth. Additionally, there are emissions savings from modernisation.
It has been 20 years since the establishment of an economic regulatory regime for the provision of en-route air traffic control services. The Bill will modernise regulatory provisions relating to air traffic services, provided by NATS (En Route) plc, or NERL, and regulated by the Civil Aviation Authority, ensuring that the framework remains fit for purpose and continues to build on the UK’s excellent safety record. Following Report, the Bill now also enables the Government to continue to provide alleviation from the requirement to use slots at co-ordinated airports 80% of the time for them to be retained. These powers will be temporary, until August 2024, and I thank all noble Lords for their constructive engagement on these amendments. It was far from ideal to bring these amendments to your Lordships’ House before Report; however, Covid-19 has provided many unexpected twists and turns.
Finally, the Bill will give the police new powers to enforce the existing law surrounding unmanned aircraft to ensure the skies above us are safe without damaging the unmanned aircraft industry. There are, as ever, many people beyond your Lordships’ House who have helped shape the Bill—the CAA, NATS, the police and others across government—and, of course, we have a fantastic and more than a little patient Bill team who have had to shepherd the Bill through interesting times. I am very grateful for their hard work and persistence.
Speaking for myself and my noble friend Lord Tunnicliffe, I take this opportunity to thank the Minister and all her officials and colleagues involved with the Bill for their willingness to have informal meetings to discuss, in an open and helpful way, a range of complex issues relating to the Bill as a whole and Parts 1 and 2 in particular. This has greatly contributed to effective scrutiny, needed technical amendments and useful clarifications and amplifications, including those read into Hansard by the—
I am afraid that I have little alternative but to start again from the beginning, because I do not know at what stage I got cut off, so I hope that noble Lords will forgive me for that.
Speaking both for myself and for my noble friend Lord Tunnicliffe, I take this opportunity to thank the Minister and all her officials and colleagues involved with the Bill for their helpful approach and willingness to have informal meetings to discuss in an open and constructive way a range of complex issues relating to the Bill as a whole and Parts 1 and 2 in particular. That has greatly contributed to effective scrutiny, needed amendments and useful clarifications and amplifications, including those read into Hansard by the Minister on Report. I know that my noble friend Lord Tunnicliffe has been particularly appreciative of this way of working with the Minister and her team. It has undoubtedly resulted in a better Bill.
I also thank Ben Wood in our office for all his hard work, which has been of real value to me and to my noble friend Lord Tunnicliffe on the Bill. Our thanks go, too, to all other Members of your Lordships’ House and outside organisations with whom we have worked, not least the noble Baroness, Lady Randerson.
As has been said, the Bill has not had the quickest of passages through the House. It started out in your Lordships’ House a year ago around the time when, as I remember it, I was temporarily out of action. It now goes to the other place for their consideration, and I am quite sure that the work that we have all done on the Bill will assist its passage through the Commons.
My Lords, once again, I thank all noble Lords for their contributions. I of course note the points raised and look forward to further debate in the coming months on matters relating to aviation and unmanned aircraft. With that, I think we are done: the Bill is clear for take-off.
(3 years, 7 months ago)
Grand CommitteeThat the Grand Committee do consider the Operation of Air Services (Amendment) (EU Exit) Regulations 2020.
Relevant document: 41st Report from the Secondary Legislation Scrutiny Committee
My Lords, these regulations are made under the powers conferred by the European Union (Withdrawal) Act 2018. They amend EU Regulation 1008/2008, which sets out common rules for the operation of air services. These regulations ensure that Regulation 1008/2008 continues to function correctly in UK law after the transition period. They do so by amending the Operation of Air Services (Amendment etc.) (EU Exit) Regulations 2018.
This SI is necessary because the EU amended Regulation 1008/2008 after the UK’s 2018 regulations were made. EU Regulation 1008/2008 was amended in May last year by EU Regulation 2020/696, which inserted provisions to address problems caused by the sharp decline in air passengers resulting from the Covid-19 pandemic. It also inserted powers for the Commission to extend the new provisions by delegated acts. The Commission used these powers and made further amendments to Regulation 1008/2008 via two delegated regulations adopted on 16 December 2020. These extended two of the new provisions until the end of 2021. The earlier amendment made in May would have seen them expire at the end of 2020.
This SI was made using the “made affirmative” procedure as the only means of bringing it into force before the end of the transition period while ensuring parliamentary scrutiny. As I have noted, the most recent EU amendments were not adopted until 16 December; only then was it possible to determine the precise content of this SI. The SI was laid on 23 December, the earliest opportunity after the Commission’s adoption of the delegated regulations.
I will now describe the provisions in more detail. They allow airlines in financial difficulty to retain their operating licences, subject to certain conditions, and allow airports to urgently replace ground-handling providers should they suddenly cease trading. Both provisions will apply until the end of 2021.
Regulation 1008/2008 requires the Civil Aviation Authority—the CAA—to revoke or suspend the operating licence of an air carrier in financial difficulty; it may replace it with a temporary licence. Such action risks the integrity of the air carrier in the eyes of investors and customers. It would raise concerns about the airline’s viability and could, in turn, lead to deeper financial problems. Normally, such actions are justified to regulate tightly carriers in financial difficulty but, during the Covid-19 pandemic, all air carriers have suffered significant decreases in revenues and a more flexible response is required.
Regulation 2020/696 inserted a new provision allowing regulators not to revoke or suspend operating licences where the carrier is in financial difficulty providing that a financial assessment is undertaken, safety is not at risk and there is a realistic prospect of financial reconstruction within 12 months. The CAA is the UK regulator in this respect.
The second provision concerns ground handling at UK airports where ground-handling suppliers are restricted; for example, on safety grounds. Where a ground handler has ceased trading before the end of its contract, the new provision allows airports to choose a new provider directly for a limited period rather than undertaking a tender process.
Reduced passenger demand at airports has severely impacted the ground-handling sector and increased the risk of sudden failure of ground-handling companies. The new provision ensures that airports where ground handlers are restricted can select replacement providers quickly and minimise disruption to users of the airport.
The withdrawal Act retained EU Regulation 1008/2008 in its entirety on exit day. The amendment makes the changes necessary so that this EU regulation continues to function correctly alongside the Operation of Air Services (Amendment etc.) (EU Exit) Regulations 2018.
The SI amends Regulation 1008/2008 to fix deficiencies arising from the amendments made by subsequent regulations and Commission delegated regulations. For example, “Union air carrier” is replaced by “UK air carrier”, and references to the ground-handling directive are replaced by references to the Airports (Groundhandling) Regulation 1997, which transposed the directive. Provisions relating to the Commission’s delegated powers are revoked because they are no longer relevant to the UK.
The impact of the Covid-19 pandemic will continue for some time. The provisions that I have described provide the CAA and airports with additional flexibility to respond. I commend the regulations to the Committee. I beg to move.
My Lords, I thank all noble Lords for their consideration of these regulations. As ever, I give my special thanks to those who were in touch beforehand to raise any issues or questions with me. It always amazes me, but probably in a good way, that noble Lords are able to raise issues far beyond the scope of the SI. I will do my best to respond, but I will focus on those issues that are directly relevant, while I still have time.
The noble Lord, Lord Tunnicliffe, talked about consultation and engagement. I hope he will recognise that this SI was put in place very rapidly, as the developments came out of the European Commission. We consulted the CAA and key ground-handling companies, but we were not able to consult as widely as we would ordinarily have liked. However, of course, we speak to the aviation sector as a whole, and I am not aware that there were any significant concerns about these regulations.
I turn to the point raised by my noble friend Lady McIntosh about what happens to the licences. There is not a finite supply of them. If the test cannot be met, the CAA can suspend or revoke an airline’s operating licence, or it could issue a temporary operating licence—these procedures are very well understood. I return to what is in the SI: the three tests that the CAA has to put in place are rigorous, and it will be able to assess whether a licence needs to be suspended or revoked.
I turn briefly to the second of the three points, which is about confirming that the financial problem poses no safety risk, and I will pick up the point that the noble Lord, Lord Empey, raised. Of course, safety is our highest priority in aviation; there has been no change to the regulation in relation to it, and there has been no change to the enforcement of safety regulations—that remains the case, and I reassure him on that.
The noble Baroness, Lady Randerson, asked whether these powers have been used, and the noble Lord, Lord Tunnicliffe, asked whether they might be extended in the future. I am not aware that these powers have been used since they became available in May 2020, and, obviously, I hope that they do not have to be used in 2021 either—but they provide the flexibility, should we need it.
On the issue of ground handlers, we are, of course, transposing, or matching our regulations to, things that were set out by the European Commission, as is the case under the withdrawal Act. At the moment, no airports in the UK have a limitation on the number of ground handlers to no more than two on safety grounds, so the ground-handler side of things would not currently be needed. However, on the airline side, it certainly gives the sector some comfort that there is the appropriate flexibility, should it be needed.
Of course, in the first instance, we are looking to the end of 2021, which is why we had to get these powers in quite quickly at the end of last year. I hope that we do not need to extend them in 2022, but we will continue to talk to the industry about this. If we need to consider extending them, this will require primary legislation. As for what the European Commission may do, obviously, we will watch with great interest, but the UK will make these decisions for itself.
This slightly leads into the question of what a UK airline and a foreign airline are. The latter needs to have an air operator certificate and a route licence from the CAA to operate in the UK. A UK airline must have a principal place of business in, and be regulated by, the UK. As such, to a certain extent, an airline decides where its principal place of business is and, therefore, who it is regulated by. Of course, within the EU and, to the largest extent, the UK, it probably does not really matter because you are mostly dealing with the same regulation—so Ryanair is not a UK carrier because its principal place of business is not in the UK and, therefore, it is not regulated by the CAA.
The noble Lord, Lord Berkeley, also asked about new bilateral agreements following the trade and co-operation agreement, which we entered into at the end of last year. There do not need to be any bilateral agreements now, so there will be no new ones with EU member states because the new air services agreement within the TCA covers the entirety of the EU.
Turning to the point made by the noble Lord, Lord Empey, about PSOs, the Northern Ireland protocol applies only to trade in goods, whereas public service obligations are a service. They are therefore not subject to state aid rules and can be considered in the broader context of regional connectivity. The PSOs were put in place under Regulation 1008/2008; as I said, this regulation has been retained in UK law. Indeed, Article 3.5 of the EU TCA makes specific mention of PSOs as an allowed subsidy, which is positive. Decisions on PSOs are made on a case-by-case basis. I believe that the noble Lord, Lord Berkeley, asked whether an EU carrier would be able to undertake one. If no UK airline was interested in providing a PSO, an EU airline could be given greater cabotage rights so that it could then provide the service.
We in government have come up with a good package that covers many types of business in the economy. I will not go through this in detail as I am sure noble Lords have heard it mentioned many times before, but the air transport sector as a whole has received around £3 billion of support from the Covid Corporate Financing Facility and the job retention scheme alone. Noble Lords will be well aware that the airport and ground operations support scheme has been announced by the Government; that should be helpful in reducing cash burn, particularly for small and medium-sized airports. It could also unlock further shareholder and lender support.
It is worth mentioning that further cross-economy measures are available to businesses in the aviation sector if they are eligible. In January 2021—this month—easyJet announced that it had signed a £1.4 billion loan facility with a syndicate of banks, partially guaranteed by UK Export Finance. British Airways also secured a similar commitment for £2 billion, which, again, will be partially guaranteed by UK Export Finance. A lot is going on to make sure that our aviation sector is secure for the future. Also in January, the Chancellor announced the Additional Restrictions Grant. Again, that may be appropriate for some businesses, but we are well aware that, like so many sectors of our economy at the moment, aviation is struggling.
We are now focused on getting a plan together—the noble Baroness, Lady Randerson, mentioned this—for how we will help the sector recover. We are doing a lot of work in this area. The expert steering group, which we originally set up right at the outset of the pandemic, was reconvened in September to focus specifically on recovery work. It includes representative bodies such as the Airport Operators Association and Airlines UK, airlines such as easyJet, IAG, Virgin and Wizz Air, airports, ground handlers, a freight representative, the Association of British Travel Agents—the noble Baroness, Lady Randerson, name-checked it, I think; it is actually involved in the recovery work so I hope that it will share its thoughts with the group—and the CAA. The steering group is working with the department to come up with a recovery plan for the aviation sector. It will explore all sorts of different things relevant to aviation; a specific example is looking at how we can make sure that we maintain our regional connectivity.
The noble Lord, Lord Bilimoria, mentioned border closures. I thank him for his suggestion about testing. As noble Lords know, this is a live issue at the moment. The Government always have it under review and are always thinking about how we can strengthen it.
My noble friend Lady McIntosh mentioned air passenger duty—not for the first time. I am always grateful to her for doing so. As I believe I have said, we take great interest in air passenger duty. The Treasury always keeps taxes under review. The Government have committed to consulting on aviation tax reform. We recognise the issue mentioned by the noble Baroness. I very much hope that, now that the workload around the initial response to Covid-19 has declined somewhat, we will be able to move the consultation forward more quickly.
Finally, on the point made by the noble Lord, Lord Bowness, about Regulation 261 and passenger compensation, I am afraid I can go no further. As I said, it is a functioning regulation and we do not believe that it needs to be updated, but I will ask officials to write to the noble Lord if further detail would be helpful.
(3 years, 7 months ago)
Grand CommitteeThat the Grand Committee do consider the Drivers’ Hours and Tachographs (Amendment) Regulations 2020.
Relevant document: 41st Report from the Secondary Legislation Scrutiny Committee
My Lords, these regulations are the first to be made under the powers conferred by Section 31 of the European Union (Future Relationship) Act 2020. By reason of urgency, it was necessary to make these regulations without a draft being laid and approved by both Houses of Parliament. The urgency was that these regulations needed to be made and to come into force before the end of the transition period on 31 December 2020, to ensure that the rules relating to drivers’ hours and tachographs could continue to be enforced in Great Britain and Northern Ireland, in respect of vehicles engaged in commercial road transport, under the terms of the EU-UK Trade and Cooperation Agreement, or TCA.
Drivers’ hours rules are central to keeping our roads safe and protecting driver welfare. They set maximum driving times and minimum break and rest times for most commercial drivers of both lorries and coaches. For example, the rules mean that after 4.5 hours driving, a driver must take a 45-minute break, and daily driving time is normally limited to nine hours. The consequences of driving any vehicle when fatigued can, of course, be catastrophic, and the potential risks associated with heavy commercial vehicles are particularly severe.
These rules are enforced by the Driver and Vehicle Standards Agency at targeted roadside checks, but also by visiting operators’ premises. The principal tool used by enforcement officers is the record generated by the tachograph, a device installed in relevant vehicles that records the driving, rest and break times of individual vehicles and drivers. The regulations amend domestic legislation to ensure that the roads chapter of the TCA, which covers the drivers’ hours and tachograph rules applicable to journeys between the UK and EU from 1 January 2021, can be enforced. They do this by providing that the EU drivers’ hours regulation and the EU tachographs regulation, which are retained in domestic legislation by the EU withdrawal Act, will apply to journeys between the UK and the EU, as well as domestic journeys in the UK. The regulations also clarify that the AETR rules apply to journeys between the UK and countries that are not EU member states.
As I said, the drivers’ hours and tachograph rules are important to public safety, and this instrument is required to ensure that such rules can continue to be enforced effectively. The policy area of drivers’ hours is devolved with respect to Northern Ireland. While, for the sake of efficiency, this SI makes amendments to the retained EU regulations on a UK-wide basis, this does not affect the devolved nature of the policy.
To conclude, keeping these regulations in force is essential for ensuring that the drivers’ hours and the tachograph rules applicable to journeys between the UK and EU member states under the TCA are enforceable. These rules are at the heart of the road safety regime for commercial vehicles. I beg to move.
My Lords, we have a small but perfectly formed group considering these regulations today and I am grateful for all contributions. I shall endeavour to answer as many questions as I can in the time available.
On the point raised by my noble friend Lady Gardner, the roads chapter of the TCA specifies that the drivers’ hours and tachograph rules applicable between the UK and the EU are consistent with those set out in the EU drivers’ hours regulation and the EU tachographs regulation, which have been retained from EU law. As I am sure my noble friend will appreciate, this means that the flow of drivers and their trucks either way between the UK and EU is facilitated by the work that noble Lords are doing today. Therefore, she should feel reassured that no delays at the border are caused by tachograph issues. I am pleased to say that, at the moment, there are very few delays at the border anyway. That is because we have seen greater trader and haulier readiness than, certainly, I was expecting, which is positive. That is even in the context of the slight curveball that the French and, latterly, the Dutch threw by requiring testing for hauliers as well. While it was a difficult time after the testing regime was implemented, it has all calmed down significantly now. I am pleasantly surprised at the amount of readiness out there, which just goes to show that, sometimes, when the Government encourage people to do something, they really do it.
I also reassure noble Lords that the TCA means that a new generation of tachographs will be installed in UK vehicles used internationally when they are ready. Drivers’ hours and tachograph rules will also be applied to some light goods vehicles, which we think will help road safety too. So, there is a lot of co-operation between the UK and the EU particularly in respect of these international movements, drivers’ hours and tachographs.
I turn briefly to fines, non-compliance and enforcement. We take this incredibly seriously. I think that it was the noble Lord, Lord Berkeley, who asked whether there was an army of enforcement officers waiting at the roadside to catch recalcitrant hauliers. Yes, there is; that is exactly what we have. Data for 2019-20 from the Driver and Vehicle Standards Agency, the DVSA, show that officers stopped more than 66,000 vehicles on the road. From those encounters, they issued more than 12,000 fixed penalty notices for drivers’ hours and tachograph offences. One driver might have got several of those, so it is not necessarily the case that a high proportion of people are doing wrong. However, I am afraid that it was foreign drivers who picked up most of those fixed penalties—77.2% went to non-UK drivers. That is why the regulations are so important.
A range of fines can be applied to the driver. For UK drivers, it is a fixed penalty notice; for non-UK drivers, financial penalty deposits also play an important part in the enforcement regime. That means that the driver has to pay the fine there and then, the DVSA being well versed in collecting the appropriate funds at the roadside to ensure effective enforcement for those who do not follow the rules.
The noble Lord, Lord Berkeley, requested more information on the DVSA and its activities. It has a large group of enforcement officers out on the roadside. They go to motorway service areas, ports, venues and other places—anywhere where one would imagine there is a significant number of hauliers. Visits to operators are often done on a risk-based system. DVSA has some quite good computer software which looks for those who are likely not to be following the rules as much as others.
The noble Lord was worried about the number plate recognition system. I reassure him that the national NPR system works for registration numbers irrespective of where the vehicle originates. DVSA probably has a bit more information on UK vehicles than non-UK ones, but that does not mean that the NPR system does not work; we can identify those vehicles. Virtually all vehicles now have digital tachographs. The driver inserts their own card, which they then transfer from vehicle to vehicle, meaning that the DVSA can compare the two to see whether a driver has been driving without using a card. The noble Lord told the Committee about his pesky friend who seemed to be doing something that was not entirely within the law—I hope that he has ceased and desisted from doing that now. Drivers who use more than one card are usually easy to identify because the DVSA has the IT systems to check card validity.
On the issue of tachographs, we are always looking at how we can improve enforcement, particularly around tachograph falsification. The Department for Transport is preliminarily considering developing an additional range of sanctions, including in the context of non-UK operators’ responsibilities. We will take that work forward in due course.
The noble Baroness, Lady Randerson, mentioned the lack of access to EU systems, but that is not the case here. The UK remains connected to the TACHOnet system, which is used by the DVLA—the Driver and Vehicle Licensing Agency, which is different from the DVSA—when it processes tachograph card applications at the outset. Basically, this prevents a driver having more than one tachograph. It is also used by the DVSA when doing its roadside checks so that it can get access to the EU information.
The noble Baroness mentioned the EU mobility package changes, and I apologise for the state of the Explanatory Memorandum and its being unclear; I will take that back to the department, and perhaps we will be able to improve it for the next time. I reassure her that work is already under way on the mobility package amendments: a draft negative resolution was laid for sifting in Parliament in early January. Unlike this SI, the changes are not operation-critical.
There is currently a relaxation of drivers’ hours; indeed, we have had a number of these, as we have had discussions with the haulage industry and the freight sector about how they feel freight and goods are flowing, the impact of Covid-19 on staff absences and whether specific issues within the system are causing goods to back up. We feel that there is a risk of continued disruption to the supply chain, so we extended the relaxations until 31 March. However, the understanding is very clear: they can be withdrawn earlier if circumstances change—so we do keep it under review. We are very cognisant of driver welfare and road safety, and we are very clear that normal drivers’ hours rules are to be followed unless it is absolutely necessary not to do so.
The noble Lord, Lord Rosser, and the noble Baroness, Lady Randerson, asked about reducing workers’ rights. This Government recognise the importance of drivers’ hours rules to driver welfare and road safety. I am not aware of any proposals in this area, so there has been no engagement or consultation, except for talk about temporary relaxations. The Government have no long-term plans to reduce workers’ rights.
In closing, I reassure the noble Lord, Lord Berkeley, and the noble Baroness, Lady Randerson, about things that they may have read about the DVLA in the Observer. I say to them: do not believe everything that you read in the media. I speak to the CEO of the DVLA very frequently: I last spoke to her on Sunday, and we went through all the allegations in the Observer. There are some very interesting comments, and all I can say is that I do not recognise them.
The noble Lord, Lord Berkeley, may be interested to know that the CEO, Julie Lennard, will be at the Transport Select Committee tomorrow. I believe that she will put his mind at rest: the DVLA has the very highest standards on staff welfare. It follows the guidance from Public Health Wales and the Welsh Government to the letter, has frequent conversations and discussions with Public Health Wales and shares its plans with it. As such, I am reassured that DVLA staff are being looked after as well as possible. We must also recognise that the services it provides are critical to the functioning of our economy, and to enabling people to get to medical appointments and undertake essential journeys. I am sure there will be more on that at the TSC tomorrow.
That was a slight diversion from the SI before the Committee, but I commend the regulations.
(3 years, 7 months ago)
Lords ChamberMy Lords, I am grateful to the noble Lord, Lord Tunnicliffe, for tabling these amendments. I hope to set out the Government’s rationale for why we believe they are not necessary. I do not expect to speak at length on all groups, but for this group specifically it is important to put on record some commitments that the Government are willing to make and the rationale for them. I will return to the financial concerns of airports, raised by the noble Baroness, Lady Randerson, in the next group.
Amendments 1 and 10 seek to require the Secretary of State and the Civil Aviation Authority to act in accordance with the general duty set out in Sections 1 and 2 of the Transport Act 2000 respectively. These duties apply only to the provision of air traffic services and set out various matters to be considered in the exercise of the relevant functions. This includes the words
“to secure that licence holders will not find it unduly difficult to finance activities authorised by their licences”,
which in effect refers solely to NATS (En Route) plc, or NERL, as the UK’s only licence holder. I understand that NERL would like to ensure that the specific duty on the Secretary of State and the CAA is considered when directing NERL with an airspace change proposal, or ACP. It is already a requirement for the Secretary of State and the CAA to consider any licence conditions relating to NERL’s role in airspace modernisation through the lens of its statutory duties under the Transport Act 2000. As with any proposed recipient of a direction, if the licence holder has financial concerns in progressing an ACP then we expect that the CAA’s oversight team will seek to assist in finding potential solutions, such as sharing costs or expertise with other airport operators or assisting the proposed recipient in applying for funding from other sources.
The noble Lord’s amendment would extend the duties of the CAA and the Secretary of State in the Transport Act 2000 to cover other sponsors of airspace change; for example, airports. Relevant duties already apply to air navigation functions which the Secretary of State directs the CAA to carry out. Section 66 of the Transport Act 2000 enables the Secretary of State to give directions to the CAA regarding air navigation, and Section 70 sets out the CAA’s general duty in relation to its air navigation functions.
The amendment would be likely to cause a legislative conflict because, when determining whether to make directions using the powers in the Bill, the Secretary of State will consider advice from the CAA. This advice will take into account how critical the airspace change in question is in contributing to overall airspace modernisation, and the ability of the proposed recipient to progress the change, including the proposed recipient’s financial and other resources.
I turn to Amendments 2, 5, 8 and 9. The purpose of Amendments 2 and 5 is to require the Secretary of State to have regard to representations made by any person involved in airspace change before issuing a direction in order to be satisfied that the direction is necessary to deliver the CAA airspace strategy and that it is reasonably practicable to comply with. Amendments 8 and 9 would require the Secretary of State to ensure that the same considerations applied if the Secretary of State varied a direction and that the reasons for the variation were published. I reassure noble Lords that appropriate conditions are already written into the Bill.
Clause 2(3) states that, before giving a direction, the Secretary of State must consult its proposed recipient. Clause 2(4) states that the Secretary of State may give a direction only if he or she is of the view that it
“will assist in the delivery of the CAA’s airspace strategy.”
Clause 3(2) states that the Secretary of State must consult both the proposed recipient of the direction and
“the person with whom co-operation would be directed.”
On Amendments 8 and 9, Clause 4 requires that directions, and any notice of variation or revocation, given by the Secretary of State under Clauses 2 and 3 are given in writing and are published. As with directions given under Clauses 2 or 3, any variation of a direction must assist in the delivery of the airspace strategy. We also expect the Secretary of State to consider how critical the ACP is and the ability of the sponsor to progress it. Before varying a direction, prior consultation with the relevant parties would be required. The same factors considered when giving a direction would be considered before varying or revoking a direction.
The requirement to consult before giving or varying a direction would inevitably require the Secretary of State to provide reasons for giving or varying a direction and to take advice from the CAA to ensure that the direction or its variation is required to assist in the delivery of the CAA’s strategy. We would expect the reasons for the direction, or variation or revocation, to be given and published alongside the direction or notice of variation or revocation, rather than in the direction or notice of variation itself, although the Bill is not prescriptive on that point.
In the unlikely event that a direction or variation were given where it was not reasonably practicable for the sponsor to carry it out, the sponsor would be able to use its right of appeal to the Competition Appeal Tribunal, under Schedule 1, if the decision was wrong on one or more of the following grounds; namely, if it was based on an error of fact or was wrong in law, or an error was made in the exercise of a discretion.
Amendment 11 would make the Secretary of State responsible for the implementation of the CAA’s airspace strategy. It would also require the Secretary of State to lay before Parliament a Statement setting out progress towards the implementation of the strategy within 12 months of the Bill being passed, and to lay further reports covering every subsequent 12-month period within six months of those periods ending.
The Civil Aviation Authority (Air Navigation) Directions 2017, issued to the CAA under Section 66(1) of the Transport Act 2000, directs the CAA to
“prepare and maintain a co-ordinated strategy and plan for the use of UK airspace for air navigation up to 2040, including for the modernisation of the use of such airspace.”
This places responsibility on the CAA for preparing the strategy, in consultation with the Secretary of State, and to report annually on the delivery of that strategy, which the CAA does through its airspace modernisation strategy—AMS. However, although the CAA and the DfT, as co-sponsors, are jointly responsible for the programme and for setting out the framework within which modernisation happens, airspace modernisation will ultimately be delivered by aviation stakeholders. Therefore, the legislation makes it clear that the CAA is required by the Secretary of State to prepare and maintain an airspace strategy and publish an annual report on it, and that the Secretary of State will hold the CAA accountable for this.
With regard to the requirement for the Secretary of State to lay before Parliament a Statement on the CAA’s progress against the strategy, as I mentioned previously, the CAA is already required to publish an annual report on progress against the AMS through the directions made by the Transport Secretary under the air navigation directions 2017. The latest report was published on 22 December 2020. It is worth noting that an amendment of this nature would widen the scope of the Bill, which provides the Secretary of State with specific powers with regard to airspace change proposals, not responsibility for the AMS as a whole, which is covered by Section 66 of the Transport Act 2000.
Finally, Amendment 13, also tabled by the noble Lord, Lord Tunnicliffe, would require the Secretary of State to report on the impact of Parts 1 and 2 on the general aviation—GA—sector. I thank the noble Lord, Lord Tunnicliffe, for his constructive engagement on this issue since Committee; his insight and experience have been most welcome.
GA is a key part of the aviation sector and is an important source of pilots, engineers and technicians, who, in turn, contribute to the success of commercial aviation, as noted by the noble Lord, Lord Tunnicliffe. The Government support GA, and we will continue to ensure that its needs are not overlooked at both local and national level when it comes to airspace modernisation.
However, I do not believe that it would benefit the AMS to place a reporting burden on the Secretary of State within 12 months of the Bill becoming an Act, for two reasons. First, Part 1 provides the Secretary of State with powers of direction relating to ACPs. Initially, we intend to use the powers in the Bill only on ACPs that are part of the master plan which is being developed by the Airspace Change Organising Group—ACOG—and formally accepted into the AMS. However, due to the impacts of Covid-19 on the modernisation programme —notably, the financial impacts on industry—the next iteration of the master plan will now not be delivered until later in 2021. That means it is very unlikely that within the 12-month period laid out in Amendment 13 a sponsor would have been directed to undertake an airspace change. If the powers in Part 1 are not used in this timeframe, there will be no impact on GA to be assessed and reported.
Secondly, Part 2 relates to NERL’s licence. NERL is responsible for upper airspace, where GA aircraft, other than business jets, do not routinely fly. An impact assessment, relating to Part 2, of the effects on GA would be very limited in content. The Secretary of State is aware that ACPs can have both positive and negative effects on stakeholders, including the GA community. If an individual ACP were directed, the impacts on GA would be set out in the CAP1616 process and GA bodies would be consulted if there were impacts.
I will revisit some of the things that the Government already do to ensure that the GA sector is fully represented at every level of the airspace modernisation governance structure. First, the Government are grateful to the All-Party Parliamentary Group on General Aviation for sharing the findings of the inquiry into UK lower airspace led by my noble friend Lord Kirkhope. The Government will continue to consider these recommendations during future updates to the AMS.
Secondly, CAP1711b, the governance annexe of the AMS, lists all the organisations that must be engaged in airspace modernisation. For example, ACOG is required to demonstrate how it has engaged with GA bodies such as the General and Business Aviation Strategic Forum in order for the master plan to be accepted by the CAA. To further strengthen ACOG, two GA representatives now sit on its steering committee.
Additionally, and following the Kirkhope inquiry, the Secretary of State has amended the air navigation directions to require the CAA to undertake a review, in consultation with airspace users, of airspace classification. The review will identify volumes of controlled airspace where the classification could be amended to better reflect the needs of all airspace users. The Secretary of State has also directed the CAA to prioritise ACPs from GA aerodromes relating to global navigation satellite systems—GNSS—approaches.
My Lords, our airspace modernisation is a complex but necessary process. It is necessary in the modern world because it enables environmental gains in an industry increasingly under fire for its emissions and where the technological solutions are much more long term than they are in the case of, for example, road vehicles. However, as the noble Lord, Lord Tunnicliffe, has just pointed out, one person’s gain is often another person’s loss. These are useful amendments because there is a real fear of a potential conflict between airports as the modernisation process goes forward.
In Committee, I mentioned that Stansted and Luton airports, for example, are very close geographically. It is not impossible to imagine that what would help Stansted might deprive Luton; for example, a potential airspace route that would cost it money in terms of potential for new services. Since the Committee stage, airports have found themselves in great financial difficulty because of travel restrictions. These amendments are therefore designed to ensure what I assume is an even-handed approach from the Secretary of State down through the CAA and the Airspace Change Organising Group.
The Airport Operators Association remains concerned about the funding of this issue—I raised that in the last group and was delighted to hear that the Minister has agreed to deal with it in her response here. When this matter was raised previously by the Airport Operators Association, the Aviation Minister suggested three sources of funding in a situation where one airport was going to win at the expense of another. The first suggestion was that alternative sponsors might pay. I would be grateful if the Minister would explain exactly what is intended with that proposal.
The second suggestion from the Aviation Minister was that funding might come from the £10-million airspace modernisation fund. That sounds fine but it is actually a relatively small sum so I would be grateful if the Minister could explain whether that is a fixed sum or extra funding would potentially be available.
Thirdly, there was a suggestion of government funding on a case-by-case basis. If the Government have any further thoughts on this, it would be really good to hear them at this stage. I hope that the Minister can put the Government’s intentions on record today to clarify these issues.
My Lords, the purpose of this group of amendments is to enable compensation for the recipient of a direction if the airspace change is predominantly or wholly for the benefit of a third party and if issuing a direction would lead to adverse financial impacts. Amendments 3 and 7 would also allow the Secretary of State to recover the cost of the compensation from the third party.
It is important for me to be clear up front that, while we recognise the severe impact that Covid-19 is having on the aviation sector, the “user pays” policy principle is an important one: those who stand to benefit from airspace change should pay for the costs of such a change. In the light of the pandemic and its effects on the aviation industry, most airports have paused their work on airspace change. However, airspace modernisation remains critical to deliver additional capacity and improve access to airspace for different users; it also brings environmental benefits by reducing emissions.
Therefore, the Government have asked the Airspace Change Organising Group—ACOG—to revisit the master plan for airspace change in this light to ensure that the benefits of the programme are realised and that the investment already made is not lost. In July last year, ACOG published a report on remobilising airspace change. It included 10 recommendations aiming to ensure that the programme advances, while recognising the financial pressures faced by airports and the industry.
The DfT and the CAA immediately accepted recommendations 1, 2 and 4. First, we will ask ACOG to establish clear protocols for the airports that are able to resume work on airspace change, how we engage with those where work has paused and the exit process for those that decide to opt out of the programme, subject to their criticality to the programme as a whole. Secondly, we will ask NERL and ACOG to work together to re-evaluate NERL’s 2018 feasibility report into airspace modernisation to identify the core set of airport-led airspace changes that will be required in the post-Covid world. Lastly, in the short term, the CAA will work with ACOG to ensure that work on airspace change that can still progress does not conflict with or constrain the broader programme.
Officials continue to work closely with the CAA to consider the remaining seven recommendations. One of these includes funding to tackle the short-term airspace change proposal—ACP—funding gaps potentially created by Covid-19. In the light of the pandemic, we recognise that the timescales in which airspace modernisation will take place will necessarily change. ACOG therefore plans to develop the future iteration of the airspace modernisation master plan in 2021.
The powers in the Bill are tied to the airspace modernisation strategy—the AMS—and the master plan. The Secretary of State could make a direction only to persons involved in airspace change based on this strategy. Therefore, it follows that there are no plans to use these powers in the near future while the industry recovers from the pandemic. As I have said, the need to modernise the UK’s airspace has not changed. We will need these powers in future once the master plan has been developed and the modernisation programme has been restarted to ensure that the strategy can be implemented in the years to come.
The Government recognise that there may be occasions when a small airport, or another person involved in airspace change, may require financial assistance to carry out some aspects of an ACP. We expect the CAA’s oversight team to work with the potential sponsor before recommending that the Secretary of State uses the powers to direct an ACP. At this early stage, if the potential sponsor expressed concerns that it did not have sufficient funding to proceed with a particular ACP, we would expect the oversight team to work with the potential sponsor to suggest alternative solutions.
My Lords, I thank the noble Lord, Lord Tunnicliffe, NATS and the CAA for their very constructive engagement on this issue, which has resulted in these government amendments. In moving Amendment 12 I will speak also to Amendment 21.
Amendment 12 seeks to amend Section 34 of the Transport Act 2000 to give the CAA greater flexibility to consider representations about an alleged or apprehended contravention—or a complaint—and to ensure that resources are used effectively. Section 34 of the Transport Act 2000 currently places an obligation on the CAA to investigate a complaint if the representation is made by—or on behalf of—a person who appears to have an interest. While this obligation does not apply if the representation appears to the CAA to be frivolous or vexatious, in practice this section as currently worded gives the CAA little discretion not to commence formal investigations. As a result, the licence holder and CAA may be presented with a considerable burden when engaging with an investigation which could potentially have serious resource implications, even where the CAA then decides not to take further enforcement action.
Amendment 12 will provide clarity and flexibility for the CAA and stakeholders as to when investigations should be commenced. This will reduce the potential for unnecessary investigations which have no material effect—or which result in no enforcement action being taken—without watering down the CAA’s powers, or the ability of parties to raise a complaint. The CAA will publish updated enforcement guidance, which can refer to the application of Section 34.
Amendment 21 is a minor, consequential amendment. The Bill already makes a consequential amendment to Section 34 of the Transport Act 2000. That provision would have changed the current reference in Section 34 from “condition of a licence” to “licence condition”. As Section 34 is being amended more substantively, that consequential amendment is no longer required.
I turn briefly to Amendment 19, tabled by the noble Lord, Lord Tunnicliffe. I am grateful to the noble Lord for engaging with this. Amendment 19 seeks to ensure that the CAA would impose penalties on the licence holder, NERL, only where the contravention of the licence or Section 8 duty is serious, and it was deemed proportionate to do so. Following extensive engagement with NERL and detailed consideration, the Government are of the view that this amendment is not necessary. There are already sufficient legal checks and balances contained in the Bill, as well as through policy and guidance, to prevent disproportionate fines being levied on a licence holder.
The proposed amendment would also depart from the approach taken in the equivalent provision in the Civil Aviation Act 2012, meaning that the threshold for imposing a penalty relating to NERL would be higher than that for an airport’s economic licence. This would create a disparity in CAA enforcement across the sector. I do, however, appreciate the importance of considering the seriousness of the contravention, along with the proportionality of imposing a fine, and I will take this opportunity to reassure noble Lords of what provision has already been made.
First, the power of the CAA to impose a penalty is discretionary, and it would do so only for the most serious contraventions or as a matter of last resort. All regulators, including the CAA, are already required to consider the better regulation agenda—as well as the Macrory principles of better enforcement—in exercising their regulatory and enforcement functions. The Macrory principles explicitly state that enforcement must be proportionate to the nature of the offence and to the harm caused. In practice, proportionality will be considered at every stage of a stepped process to enforcement, which will be set out in the CAA’s enforcement guidance and statement of policy on penalties. The CAA is required to consult relevant stakeholders on the latter. The CAA will decide whether to impose a penalty, and the level of penalty, by assessing the seriousness and harm caused to users by the contravention, through the lens of its statutory duties under the Transport Act 2000.
If the CAA were to propose a penalty on the licence holder, the Bill contains procedural safeguards, in the form of consultation with the licence holder, before the penalty could be imposed. This would give the licence holder the opportunity to highlight the steps it is taking to mitigate the contravention. The CAA would consider all stakeholder representations ahead of imposing a penalty. If the licence holder were to disagree with an imposed penalty, they could appeal to the Competition Appeal Tribunal, which would have to have regard to the financeability duty imposed on the CAA under Section 2 of the Transport Act 2000. This approach is broadly aligned with equivalent provisions in the Civil Aviation Act 2012. The Government’s decision to modernise the air traffic licensing regime recognised that appropriate alignment with similar regulatory regimes would provide stakeholders with greater clarity and certainty and assist the CAA in exercising its regulatory functions and statutory duties in a more effective manner.
Turning to Amendment 20, I think we are agreed that the CAA should have a discretionary power to investigate complaints under Section 34, as set out in Amendment 12. It would therefore be inconsistent to narrow the power for the CAA to obtain information in relation to Section 34. I beg to move.
My Lords, these amendments relate to the CAA’s function to investigate complaints over breaches of licence conditions. Since the CAA has considerable powers, any limitation of those powers needs to be carefully balanced. There are concerns within various parts of the aviation industry about how the dual role of the CAA effectively operates in relation to these issues.
I regret that I am speaking before the noble Lord, Lord Tunnicliffe, because I want to listen carefully to the thoughts behind his amendments. It is important to fully understand the purpose of Amendment 20 in narrowing the power to obtain information. I believe it is in the spirit of the other limitations within this group of amendments, which seem entirely sensible.
I thank the noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe, for a brief and constructive discussion. This is the culmination of many discussions of these issues, and we were very keen to reassure the noble Lord, Lord Tunnicliffe, that we recognised his concerns. We did—in typical government fashion—decide that our amendment was better than his, for which I apologise, but I suspect we were probably right. I am very grateful that the noble Lord is supporting the amendments. I tried very hard to set out exactly what we would expect the CAA to do in relation to his Amendment 19, and I am pleased that I have reassured him.
On Amendment 20, we felt that it would be inconsistent to narrow the power for the CAA to obtain information in relation to Section 34, because the Bill currently includes the power for the CAA
“to obtain information for … carrying out its functions under section 34 and Schedule B1”.
This covers documents or information that the person has or are under their control. It is important to note that:
“The CAA may give a notice under this paragraph only in respect of information or documents that it reasonably requires”—
I suspect that is a bit of narrowing—
“for the purpose of carrying out its functions under section 34 or Schedule B1.”
Therefore, we do not feel that it is necessary to limit the power, as we believe that the Bill is already appropriately drafted. On that basis, I commend the amendment to the House.
My Lords, Amendments 12A, 18A, 18B and 44 are a series of government amendments to provide temporary powers for the alleviation of airport slot usage rules. This will amend retained EU regulation 95/93, which governs the allocation of UK airport slots.
Prior to the Covid-19 pandemic, the 80:20 rule—or the so-called use it or lose it rule—encouraged the efficient use of scarce airport capacity, while allowing airlines a degree of flexibility in their operations. There are eight slot-constrained airports in the UK to which the 80:20 rule applies: Heathrow, Gatwick, London City, Luton, Stansted, Bristol, Birmingham and Manchester. The 80:20 rule mandates that, provided an airline has used its airport capacity at least 80% of the time in the preceding scheduling period—either winter or summer—it is entitled to those slots in the upcoming equivalent period.
Due to the unprecedented impact of the Covid-19 pandemic, in March last year the EU Commission took the decision to waive the 80:20 rule. Airport co-ordinators were instructed, when determining slot allocations for the upcoming summer season, to consider slots as having been operated regardless of whether they were actually used. This waiver covered the summer 2020 season and was subsequently extended to cover winter 2020-21. The UK supported the EU’s position.
Without alleviation, airlines may have incurred significant financial costs by operating flights at low load factors merely to retain their slots. Alleviation has helped to protect future connectivity and airline finances and reduced the risk of ghost flights being run to retain slots.
We anticipate that the effects of the Covid-19 pandemic on the aviation industry will continue for some time. Passenger demand is not predicted to return to 2019 levels until at least 2024-25. After we exited the UK-EU transition period on 31 December, regulation 95/93 was retained in UK law. However, when it was retained, the powers of the Commission to extend the period of alleviation from the 80:20 rule—which are being transferred to the Secretary of State—were expressly limited to 2 April 2021. As we expect disruption to air travel to continue for several years, it is therefore imperative that the UK has the necessary powers at its disposal to provide alleviation beyond the summer 2021 season should the evidence suggest that it is warranted.
Amendment 12A inserts a new clause after Clause 11 in Part 2 of the Bill. The new clause would insert a new Article 10aa into retained Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at United Kingdom airports. This would provide the Secretary of State with a power, exercisable until 24 August 2024 and not in respect of a scheduling period after winter 2024-25, to provide air carriers with alleviation from the requirement to operate airport slots allocated to them 80% of the time in order to retain the slots for the next equivalent scheduling period.
To allow for flexibility, this amendment also includes powers to modify the 80% requirement relating to slots usage. This will be an alternative to applying a full alleviation of the 80:20 rule for a specified scheduling period or season. This recognises that there could be alternative ratios, not 80:20, which could be applied to ensure the efficient use of slots. It will also allow the Secretary of State to apply conditions to an alleviation of the 80:20 rule, such as by setting a deadline for the return of slots not intended for operation, or that a waiver will not apply to a series of slots of an airline that, for example, ceases to operate at an airport.
The amendment also allows the Government to make other changes to the operation of the rules relating to the allocation of slots under this regulation for the duration of the relevant scheduling period. For example, the Government could change co-ordination parameters to reflect partial closures of airports, adopt temporary rules for the most efficient allocation of unused slots, and give the slot co-ordinator enforcement powers—for example, where unused slots are not returned with sufficient time to enable them to be effectively reallocated to other carriers. Having the powers to vary the 80:20 ratio and apply conditions to be in place on application of the rule will allow appropriate measures to support the sector’s recovery as passenger demand returns.
The use of this power will require secondary legislation, subject to the affirmative procedure, for any applicable scheduling period in which evidence supports the conclusion that relaxation of the 80:20 rule is appropriate. The nature and extent of any relaxation will be subject to targeted consultation and, of course, there will be a debate in both Houses.
This approach will allow us to use current data and evidence, as well as to consult stakeholders, to make judgments on whether alleviations are required for each period and, if so, to what extent. We will also assess other institutions’ analysis and recommendations on slots usage rules for future seasons, including the Worldwide Airport Slot Board, and proposals from other areas, such as the European Union and the United States.
Amendment 18A is a consequential amendment to Clause 19 to reflect that the new clause on airport slot allocation extends to England, Scotland and Wales but not Northern Ireland, where aerodromes are a matter reserved for the devolved Assembly. As noted, however, all slot co-ordinated airports in the United Kingdom are currently in England.
Amendment 18B is a consequential amendment to Clause 20 and provides for the new clause to come into force immediately when the Bill is passed and becomes an Act. This amendment ensures that regulations could be made under the new Clause 11A, relating to airport slot allocation, following Royal Assent, so that they are ready to come into force as soon as appropriate thereafter.
Amendment 44 amends the long title of the Bill to include reference to airport slot allocation. I beg to move.
My Lords, I thank the Minister for her introduction to these amendments and her explanation of the background. I should explain to the House that for most of my time as a Member of the other House I represented Aberdeen Airport; I say “most of my time” not because the airport relocated, but because my constituency boundaries changed. As a result of that, and of the fact that I commuted weekly by air to Parliament for decades—until lockdown last March, I continued to do so—I have taken an interest in aviation. Until lockdown I was also a frequent traveller around Europe and the rest of the world, and have experience of a variety of airlines and airports, large and small.
The allocation of airline landing slots is controversial, in terms of competition and commercial opportunity, as well as of access from feeder airports to the co-ordinated airports—a particular concern of mine. I completely understand the reason for the current waiver of the 80:20 “use it or lose it” rule, in the present climate. As the Minister said, we are following the same measures as the EU. Since she touched on this, does she foresee any circumstances in which the UK would, or should, take a different approach—for example, in how the proportions are reallocated? What would be the criteria or the conditions for that to happen?
I understand the complexity of managing slots, especially when airlines have seen their incomes decimated, and the fact that, as the Minister said, the predictions are for a long, slow period of recovery. At the same time, airport managers understandably wish to maximise traffic through their airports and resent it if airlines retain slots that they do not use, especially if other airlines are seeking additional slots with the intention of building a service. Given the need to maintain good relations with its airline clients, an airport may be unwilling to express its frustration. Clear, legally enforceable rules would be helpful, so does the Minister think that legal enforceability of the slots rules should be considered?
Access to services to and from London airports is especially critical for Scottish and Northern Ireland airports, both for access to London and for connections to Europe and the rest of the world. Of course services are driven by demand and commercial reality, but it is acknowledged that wider economic consideration for linkages is also important. That was demonstrated by the Government’s intervention on the collapse of Flybe, in relation to certain regional services.
Leaving aside the case for subsidies—I am not engaging with that in this debate, even for lifeline services, as it seems an important but separate issue—there has been a belief among many airport users that feeder routes to London may be profitable, but that the slots could be more profitably used for long-haul routes. The feeder routes were not necessarily uncommercial, but perhaps less profitable. Control and possible hoarding of slots by the larger airlines restricts competition and makes it difficult for other airlines to develop alternative services.
At the height of oil and gas activity in Aberdeen, we had daily flights to not only Heathrow but Gatwick, London City, Luton and Stansted; more recently Loganair trialled a service to Southend, but that did not last long. British Airways pulled out of providing a service to Gatwick and London City years ago. I found that hard to understand, as many of the airline’s holiday flights operate from Gatwick and transfers from Heathrow to Gatwick are not relaxing. EasyJet pulled the last Gatwick link, and Flybe and Eastern ended the City flights. Flybe and Virgin both attempted to offer a Heathrow service but neither became established, although it was Flybe’s demise that ended its Heathrow link.
As of this week, because of the pandemic, we have one or two return flights a day to Heathrow, compared with the six or seven we would expect in normal times. EasyJet will start providing daily flights to Luton from March, and—hallelujah—to Gatwick from May, Covid permitting. No doubt users of Belfast Airport will have a similar story, while Inverness has had to fight to retain links to London. Indeed, the reduction in services to London has seen business switch to Amsterdam and Paris, to which we have direct services, although those services, too, are currently limited.
As has been said, airlines’ recovery post-pandemic is likely to be slow but could also be ruthlessly competitive. Will the Government consider how the allocation of slots can be managed to ensure that it works in the best interests of all stakeholders, including the flying customers and feeder airports? Can airlines be prevented from hoarding routes they do not use, if that keeps out feeder routes or newcomers?
What steps can be taken to ensure that the allocation of slots takes into account the economic and social needs of remote communities, which are by definition more dependent on air links? Just for the record, the train journey from Aberdeen to London takes a minimum of seven hours, and at the moment we have only one direct service without changes; the others take longer. For people living in such areas, flying is not a luxury but an essential part of life.
My Lords, we generally support these four amendments, and we thank the Minister for tabling them for our examination. Nevertheless, one must recognise that the dilemma brought out by the noble Lord, Lord Bruce, in his contribution, is a real one. It is important to see these amendments as quite separate from the general problem. Can the Minister tell the House what examination of this problem the Government expect to conduct in the future?
I know from my own experience, which goes back to the 1980s, that slot allocation is a very difficult and challenging problem in the airline industry. One of the problems in life is that when there are many parties to finding an overall solution to the distribution of a scarce resource the solutions you get become very difficult to change: creating a level of change that would address the issues raised by the noble Lord, Lord Bruce, would be in the best “Yes Minister” category—very brave. I hope, nevertheless, that the Minister can lay out some of the plans for addressing this issue.
On the amendments as a whole, I have a few questions. The Minister may have answered them—I was slightly distracted, so I hope the House will forgive me if we go over old ground.
First, my understanding is that each season’s solution, under these amendments, will be subject to an affirmative order. I would value a simple assurance on that.
Secondly, the Heathrow authorities told us that in their view the agreements that were being developed through the Worldwide Airport Slot Board were more optimal than the solution we have had to adopt for the summer of 2021. Should, therefore, the parties—the airlines, airports and other stakeholders—come to a worldwide agreement on slot allocation? These things are co-ordinated on a worldwide basis. Certainly, when I was a senior executive the most important date of my year was the IATA timetable conference in October, which addressed the following summer’s slots. If the airlines and airports produce an overall solution, is there enough flexibility in this proposed solution to allow the Secretary of State—I stress allow, not require—to endorse such a comprehensive, multiagency agreement?
Finally, can the Minister assure the House—and the industry—that there will be adequate consultation with all stakeholders for each season that is managed under these amendments?
I thank all noble Lords for their constructive engagement on these amendments, and I recognise that it is far from ideal to bring them to the House on Report. It is simply the nature of the beast and the situation that we are in: these amendments relate to the Covid-19 pandemic and our hoped-for recovery from it.
I will first address the comments made by the noble Lord, Lord Bruce. He set out many of the challenges faced by the Government—both the short-term task of building back our aviation industry, and the longer-term strategy for the sector. I recognise that slot allocation is a challenge. I would not say it is controversial—it is just one of the challenges that one has to deal with.
The Government have recognised that this is an issue and carried out a consultation on it, alongside, I think, the consultation on the aviation strategy—which was a little while ago, in perhaps 2018 or 2019. We did, therefore, recognise the issue, and we asked the industry and other parties with an interest in the aviation sector how we might reform slot allocation. It remains the Government’s intention to do a piece of work on the long-term reform of slot allocation. But that is not for now. Now, we have to deal with the current situation by making amendments that are not minor but do not amount to an overhaul of the entire slot allocation process.
We do take into account the challenges that the noble Lord, Lord Bruce, raised. The noble Lord asked whether we would take a different approach to the EU, and I suspect that we will, but not that we necessarily will—it depends on the EU’s approach to the periods after summer 2021. We will, however, certainly be looking at other percentages in relation to a waiver, and considering very carefully the conditions that we attach to the regulations.
The noble Lord also mentioned enforcement powers, and I think that I said, in my opening remarks, that we would consider them. There are probably at least three key elements to the way in which we will take this forward. We need to think about: new entrants and whether they are able to get into the market; the needs of passengers, which is a critical element; and—as the noble Lord pointed out to great effect—regional connectivity, particularly to places, such as Aberdeen, where the alternative is very long. Being on a train for seven hours does not sound like huge fun.
I think we will return to many of the points the noble Lord raised when we discuss the regulations that will be put before your Lordships’ House. I look forward to those debates; I think they will be quite challenging, and we will be able to have discussions on all the elements he mentioned.
Turning to issues raised the noble Baroness, Lady Randerson, I am pleased that she agrees with 2024. Would it not be nice if we did not have to do anything until 2024? But I suspect we may need to be doing something by then, so we are just future-proofing the amendments. The noble Baroness had a number of quite detailed questions about how one, for example, determines that an operator has ceased operations. Those are exactly the things we are asking the sector at the moment. The consultation, as the noble Baroness knows, started right at the end of December—a three-week targeted consultation to try to get to the bottom of these very knotty problems.
I will direct my comments to Amendment 14 but will listen carefully to the Minister’s response to all the points made in respect of Amendment 15.
Amendment 14, moved by the noble Baroness, Lady Randerson, would require the Secretary of State to lay before Parliament a review of legislation relating to unmanned aircraft and whether it provides sufficient protection to individuals. The amendment also sets out a number of issues to which such a review should refer but to which it should not be restricted. The review would be required to make a recommendation on whether the Government should bring forward further legislation in the light of its findings.
Unmanned aircraft—drone—technology is developing fast, and the Government need to ensure that they are proactive, not reactive, when it comes to legislating, where necessary, to reflect developments in this technology and the expansion in the use of drones in the public services, by the Armed Forces and in both the commercial and leisure sectors, as well as by those whose priority may not be operating drones safely and responsibly.
As has been said, unmanned aircraft offer great benefits to society but can also lead to significant areas of concern. Emergency services are utilising drones to save lives, and parcel and freight companies, for example, look to use drones to deliver vital medical supplies as well as day-to-day purchases. Unmanned aircraft are now used in many industries to carry out work that is potentially hazardous for human beings or can be done much more quickly or thoroughly by the use of drones. They are also used by the police, as we have seen during the current Covid-19 crisis and the associated lockdowns—an aspect to which the noble Baroness, Lady Randerson, referred.
However, there is another side, as we saw from the drone sightings at Gatwick Airport not so long ago, which resulted in flight cancellations and diversions affecting many thousands of passengers. It led, I believe, to a COBRA meeting being convened and the Army being called in, and it also highlighted the urgent need for this Bill, which nevertheless has been going through this House at a snail’s pace and still has to go through the Commons.
We have to be in a position to be sure that legislation keeps pace with developments in the increasing use, and, most importantly, potential misuse, of unmanned aircraft, as they become more sophisticated and powerful in what they can do and for how long—as well as in their range and areas of activity, not least the monitoring of civilians, and in relation to who uses them. As the noble Baroness, Lady Randerson, also said, drones are used for criminal activity as well.
There is a need to ensure that legislation continues to provide sufficient protection to individuals and that this does not get overlooked in this developing field of technology. There needs to be a mechanism for ensuring the continued adequacy and appropriateness of existing legislation, including this Bill, in a field of activity that is expanding and moving forward and will continue to do so with some rapidity.
It is not sufficient to say that legislation will be kept under review: there are so many areas nowadays, across so many departments, where the Government tell us that legislation is kept under continuous review. We need something in the Bill to ensure that, in such a fast-developing field as unmanned aircraft and the uses to which they are put, regular reviews of legislation take place, covering, but not limited to, the specific points referred to in the amendment. It is equally important that Parliament has a clear role in the review process, which is also provided for in this amendment. Amendment 14 has our support.
My Lords, I thank all noble Lords who have taken part in today’s debate. I will take each amendment in this group in turn, starting with Amendment 14, in the name of the noble Baroness, Lady Randerson, which the Government believe is neither necessary nor appropriate.
The purpose of Part 3 is to attach police powers to offences in a separate piece of legislation—the Air Navigation Order 2016—and to other offences. Therefore, this Bill is not the appropriate place for a requirement to review unmanned aircraft legislation. Furthermore, a number of reviews are already due to take place. I hope this will satisfy the noble Baroness that her amendment is not necessary.
The ANO 2016 is the legislation that currently sets out offences that are specific to unmanned aircraft. Article 275 of the ANO 2016 states that it must be reviewed every five years, and its first statutory review is due to be completed by August 2021. This review will assess the extent to which the law surrounding unmanned aircraft, in so far as it is laid down in that instrument, is operating effectively to achieve its objectives. Of course, this may well be within the noble Baroness’s six-month timeframe.
As the impact assessment for the Bill states, this legislation will be kept under continuous review to ensure that it achieves its objectives: to address the key gaps identified from the 2018 consultation on the future of drones in the UK and to improve the ability of the police to respond to UA misuse, thereby reducing the irresponsible and malicious use of UA. This is in line with the Government’s practice of keeping all UA legislation under review, regardless of whether there is a legislative requirement to do so.
Moreover, ordinarily, a five-year timeframe applies to post-implementation reviews of legislation. This is recommended in the Government’s better regulation framework and the requirements of the Small Business, Enterprise and Employment Act 2015, in relation to new measures adopted in secondary legislation regulating business and the voluntary sector. Furthermore, the Counter-Unmanned Aircraft Strategy, published in October 2019, commits the Government to continuing to develop proposals for inclusion in future legislation, so that the legal framework within which operational responders must operate does not become obsolete or hamper their ability to respond to and investigate malicious drone activity. I am very much hoping that these forthcoming reviews will reassure the noble Baroness and other noble Lords that the Government take our ability to legislate for the fast-moving world of the unmanned aircraft sector very seriously indeed, and we have work ongoing to make sure that our legislation is up to date.
The noble Baroness briefly mentioned the use of drones by the police. We have had a few conversations about this issue. It might be worth reassuring her that the police have to abide by the same laws as everybody else. Drones are incredibly helpful to police forces and can often be used in places where there is risk to life or where a helicopter might be too expensive or not as efficient. The police have to act within the same laws as everybody else and have operational procedures that overlay those laws in terms of the right way and right circumstances in which to use drones. Decisions for their use are put into place by each police force, which has clear guidance on how they are to be used.
Responsible use is of course really important—for example, on the collection and use of video footage, again, unsurprisingly, the police have to follow the same laws as everybody else. There is also a legal position on public bodies’ use of video footage that is well regulated by directed surveillance authorities. The police are responsible for ensuring that data is collected, processed and stored in accordance with the law. In terms of the safe operation of a drone, the police must do so in accordance with the Air Navigation Order 2016 and, where needed, if the operation is slightly riskier, they will have to apply to CAA for operational authorisation —as, indeed, does anyone else. If any individual has concerns about the use of drones by police, of course they can make a complaint to the police and crime commissioner or the mayor, where appropriate.
I turn to the amendment tabled by noble and gallant Lord, Lord Craig of Radley, which generated an interesting and lively discussion on permissions for commercial operators. Now that the implementing regulation is in place, there is no difference in the requirement to obtain a permission for a commercial or a recreational operator. I will call them “recreational operators” but there are all sorts of different operators. That is absolutely right, because I do not subscribe to the view that “commercial” is good and “recreational” is necessarily bad. Creating that false dichotomy is not really helpful.
It is down to risk, rather than who the person is with their hands on the control. So the implementing regulation draws no distinction between commercial and recreational flights and the ANO has already been amended to reflect that. Of course, the offences that noble Lords are discussing today relate to that ANO but do not amend the ANO itself. So the need to obtain a permission for a purely commercial operation has now been revoked—but, of course, that could be a good thing. Many commercial operators will now be very pleased, because they will not need to apply for a licence to fly a drone which a recreational operator standing right next to them could fly without a licence.
My Lords, as noble Lords are aware, the Government made a series of amendments to the ANO 2016 by the Air Navigation (Amendment) Order 2020, which came into force on 31 December 2020. Those amendments were mainly necessary because implementing regulation 2019/947, or the IR, became applicable on 31 December 2020.
The IR was retained in UK law on 31 December 2020 and establishes a framework for the operation of unmanned aircraft to ensure that they are used safely. This includes requirements relating to registration, competency testing, authorisations for higher-risk flights, as well as provision for the creation of geographical zones in which UA use is restricted.
As the IR makes provision for some of the same subject matter as the previous requirements relating to small unmanned aircraft in the ANO, it was necessary to make amendments to the ANO, including removing provisions, to ensure that the two sets of legislative provisions interact correctly, without duplication or contradiction. The amendments to the ANO also create offences for breaches of the requirements of the IR. Those amendments mean that many of the references within the Bill to articles of the ANO, and therefore offences, are now out of date. It is therefore necessary to amend them to ensure that the powers in the Bill continue to function. This and other government amendments to Part 3 do not change the policy intention of the Bill.
The government amendment to Clause 17 is simple and technical. It ensures that the Bill refers to the end of the transition period by changing “exit day” to “IP completion day”, which means the implementation completion date.
Clause 18 deals with regulations made under this Act, and the government amendment to it is consequential to one of the amendments to Schedule 11. The amendment specifies which regulations made under Schedule 11 will be subject to the affirmative resolution procedure. The current draft of the Bill lists regulations under paragraph 4 of Schedule 11. However, paragraph 4 is removed by an amendment to Schedule 11 and the regulation-making power is set out in paragraph 1 of Schedule 11 instead.
I turn to the government amendments to Schedule 8. This Schedule gives the police the powers to require a UA to be grounded and, in certain circumstances, to stop and search persons and vehicles and to enter and search premises under warrant.
Schedule 8 also amends Section 93 of the Police Act 1997, so that counter-UA measures that involve interference with property or wireless telegraphy can be authorised, and so that the use of these measures in relation to the Civil Nuclear Constabulary and custodial institutions can be authorised within those organisations and bodies.
The amendments to Schedule 8 remove the incorrect references to offences and replace them with references to the closest equivalents and offences relating to requirements of the IR of a similar nature among the new corresponding offences in the ANO. For example, once amended, Schedule 8 will enable a police constable to stop and search a UAS operator or remote pilot who may not be complying with specific aspects of the IR’s risk-based operational framework—one example would be failing to obtain an operational authorisation to fly outside of the “open category”.
The list of offences to which the amendment to Section 93 of the Police Act 1997 applies has also been amended to include, for example, offences relating to the contravention of specified requirements in the IR. As with the other powers in this schedule, the offences to which the amendment to the Police Act will apply are only those that could constitute a serious safety or security risk if, for example, committed near certain sites, such as prisons. Without these amendments, the ability to protect the public, our critical national infrastructure and prisons from unlawful behaviour involving the use of unmanned aircraft would be limited.
I now turn to the amendments to Schedule 9. The purpose of Schedule 9 is to enable constables to obtain information from UAS operators or remote pilots about the lawful basis of a UA flight, for those flights that require a prior step to be lawful; for example, by registering or obtaining a permission. It is necessary to amend the powers in this schedule in light of the ANO amendment, including the circumstances in which the powers can be exercised. Under the IR, there is a wider range of circumstances in which a UAS operator must register, more gradations in levels of remote pilot competency and a number of new ways in which the CAA might grant its consent for a UAS operator to undertake higher-risk operations. It has therefore been necessary to substitute the schedule entirely. However, the policy intention of the schedule remains the same.
The Government consider that the powers in Schedule 9 need to be exercisable where a constable has reasonable grounds for suspecting, rather than believing, that a particular requirement applies. We believe this is necessary to ensure the purpose of the provisions is not defeated as the rules in the IR are more complex. It is necessary to amend some of the terminology to reflect the scope of the IR and the related terminology. The terms “small unmanned aircraft” and “SUA operator” are no longer used in the ANO, which now refers to “unmanned aircraft” and “UAS operator”. The Bill now refers to “relevant consent” to encompass the broader range of approvals, such as permissions, operational authorisations and certifications, that can now be issued by the CAA.
Schedule 9 is amended so that the powers that the police have in relation to the registration and competency requirements and related offences apply to the new registration and competency offences in the ANO and to the requirements for tethered small UA that the ANO amendment introduced. This means that, in the context of registration and competency, the police can still require a remote pilot to provide evidence of competency and give certain information about the operator, while a UAS operator can be required to provide evidence of registration and give information about the remote pilot.
The amendment also includes a power for the Secretary of State to make regulations setting out additional types of information and evidence which a constable could require a remote pilot or UAS operator to produce provided that the constable considered it would be reasonable to do so. Schedule 9 is also amended so that the powers that the police have in relation to provision of evidence of relevant consents for certain flights also apply to the new offences brought in by the ANO amendment. For example, the requirement to have an operational authorisation when flying in the specific category.
The power for a constable to inspect a UA has also been amended. The power, if enacted, would previously have been able to be used to ascertain whether registration and competency requirements were applicable to that particular flight and whether the UA had the UAS operator’s registration number displayed on it. Under the proposed amendment, a constable would be able to inspect a UA to ascertain whether any of the other powers in Schedule 9 were exercisable. This will still include circumstances where it is necessary to gain a more accurate assessment of the aircraft’s mass or to see whether the UAS operator’s registration number is displayed. It will now also include, for example, circumstances where a constable needs to check the class marking of a UA. EU Delegated Regulation 2019/945 requires UA put on the market from 1 January 2023 to meet certain product standards and bear markings that indicate which class the aircraft is in. This will, in time, assist a constable to ascertain whether the operation that has been undertaken using the aircraft was permitted under a particular category or subcategory of operation of the IR and to determine whether any further investigation is necessary or whether an offence has been committed.
I once again reassure noble Lords that the amendments to Schedule 9 are essential to ensure it functions as intended in light of the changes flowing from the IR becoming applicable and the changes made to the ANO by the ANO amendment.
Schedule 10 makes provision about fixed penalties for certain offences relating to UA. A minor and technical amendment has been made to paragraph 2(3) of Schedule 10 to change where the new provision created by that paragraph will appear in the ANO. This is necessary because the recent ANO amendment has added more provisions after Article 265 of the ANO.
Finally, Schedule 11 currently contains powers that allow for amendments to Schedule 8 and to Section 13 and Schedule 9 to the Bill—once it is an Act—in light of changes to the ANO, the creation of a new ANO or regulations made under the Act to provide for offences relating to EU-derived legislation. This means that the police powers in this Bill can be used to enforce any new unmanned aircraft offences brought in by any of the above.
My Lords, like the noble Lord, Lord Tunnicliffe, I have grappled with all these amendments. I wondered whether what seemed minor and technical to me might seem very significant to someone working in the industry. I thank the Minister and her officials for their thorough briefings. However, this all shines a light on the unsatisfactory situation with this Bill—a major tranche of amendments has been produced because of the time that has elapsed.
I support the points made by the noble Lord, Lord Balfe. They underline the need for a much more comprehensive approach and review. Although my amendment was narrowly lost, I hope the Minister will bear in mind the points I have made and the need to look more comprehensively at this in the near future.
As the noble Lord, Lord Balfe, said, as ever, the views of BALPA must hold great weight. It is important that safety is at the forefront of our minds, on all these issues. But because this is a diverse, complex and fast-changing subject, only people actually working in the industry are able to spot the problems when they first appear.
I agree with the noble Lord, Lord Tunnicliffe. I cannot see anything here which is not detailed and technical. Therefore, I have no objections to the amendments.
I thank noble Lords for their short interventions on this debate. Turning first to the comments of my noble friend Lord Balfe, I will, of course, take them back to the department and consider them further.
Turning to the points made by the noble Lord, Lord Tunnicliffe—I see his maths degree and I raise him an engineering degree. And I am the ultimate pedant. However, what is minor and technical to one person is not minor and technical to another; indeed, that was pointed out by the noble Baroness, Lady Randerson. When it comes to my letter to him, where I said “in most cases” and “largely”, I think I was just trying to cover my bases. The reality is that they are minor and technical. Where they are slightly not minor and technical—perhaps a bit borderline—I tried to bring that out in my 12-minute speech, particularly where there have been changes. For example, the implementing regulation has introduced some changes from the status quo ante; it is a slightly different regime. I suppose that, although they are technical amendments to make it all match up, perhaps they may be on the large end of minor. But I reassure him that I too have found nothing that I could not describe as minor or technical and, on that basis, I commend the amendment to the House.
I thank the noble Lord, Lord Randall, for his amendment, which, as he said, provides us with an opportunity to debate aircraft noise. I am sure that in her response, the Minister will set out the Government’s position on that. I certainly would not claim to know what all their objectives are on aircraft noise, but I do remember one, although it is unrelated to the specific issue covered in the amendment.
Following the 2017 public consultation on Heathrow, Gatwick and Stansted, the Government said that their objective was to
“limit or reduce the number of people significantly affected by aircraft noise at night, including through encouraging the use of quieter aircraft, while maintaining the existing benefits of night flights.”
As we are discussing aircraft noise, it might be interesting if the Minister could provide some information on the specific certifiable progress that has already been made towards achieving that stated government objective, and what specific further objectives and targets the Government have set themselves for the next three years so as to deliver on the objective to which I referred.
On the specific issue raised in this amendment, I am sure that a great many people who visit national parks and areas of outstanding natural beauty have, at times, been conscious of aircraft flying low overhead. An interesting point was made by the noble Baroness, Lady Randerson, about all the other types of protection that already exist for national parks and areas of outstanding natural beauty. In that context, she asked why the goal and objective set out in the amendment of the noble Lord, Lord Randall of Uxbridge, might not also offer a further protection, in view of how aircraft noise can, at times, diminish the enjoyment that people expect when visiting national parks and areas of outstanding natural beauty. The amendment refers specifically to civil aircraft, but presumably there could be an issue with military aircraft in this context as well.
I support the basic objectives that the noble Lord, Lord Randall of Uxbridge, seeks with his amendment. I hope that, when the Minister responds, she will set out the Government’s thinking on aircraft noise, not least on the specific circumstances covered by this amendment and the goals, objectives and targets that the Government have set in this regard.
My Lords, I thank my noble friend Lord Randall for tabling this amendment. When we debated this in Committee, noise did not particularly come up. I hope that one of the benefits of airspace modernisation is noise reducing. I am unable to set out in full the Government’s position on noise at airports; if there are any detailed questions, I will write.
However, I want to address the points made and the issues relevant to the amendment put down by my noble friend Lord Randall. He is absolutely right, and he read out lots of responses from the Aviation Minister to questions on airspace change proposals, which are covered by the air navigation guidance. Indeed, the guidance states that
“where practicable, it is desirable that airspace routes below 7,000 feet should seek to avoid flying over Areas of Outstanding Natural Beauty (AONB) and National Parks”.
There was a question about sanctions. Obviously, some airports have no option but to send flights over AONBs and national parks. For example, Gatwick is surrounded by them. We are lucky in our country, in that there are a significant number of these things and they are wonderful, but it is simply not possible for them not to be overflown. One might narrow it down to those operating below 7,000 feet, but nearly all commercial aircraft operating below 7,000 feet are taking off or landing. Again, with airspace change proposals, we expect to see the trajectory of both landing and taking off become steeper, which will again reduce noise and limit their impact.
The amendment is unlikely to have a significant impact on the volume of such flights because they are taking off and landing, but it would have a significant impact on general aviation, which would be unable to overfly vast swathes of the UK. Noble Lords will have heard today support for general aviation in government and parts of your Lordships’ House. There is lots to consider about this. It does not mean that the Government want AONBs and national parks to be overflown; we certainly do not. We expect everybody to behave sensibly when flying over such parks.
I thank the noble Lord, Lord Tunnicliffe, for his amendment, which gives the police the power to destroy a UA if they have reasonable grounds for suspecting that it has been, or is likely to be, used in the commission of an offence. We have had many a thought-provoking discussion on this, both inside and outside the Chamber. If he will forgive me, I will set out the Government’s stall in full, even though I am aware that he accepts two of the arguments that I am about to put forward.
While I understand the intention behind this amendment, it is critical that all powers in this Bill are necessary and proportionate, and we have worked very hard with the Home Office and the police to ensure that this is the case. Our aspiration for this Bill has always been to ensure that we provide the police with the powers necessary to effectively respond to UA incidents, while ensuring that we do not inadvertently discourage positive UA use in the UK.
I will set out the three key reasons as to why the Government are of the view that this amendment is not required. First—I think that this is the point that the noble Lord needs to be convinced on—from a legal standpoint, the powers to destroy a UA already exist. Section 3 of the Criminal Law Act 1967—the CLA—allows the reasonable use of force in the prevention of crime. This is not police-specific legislation, but it is legislation that the police can, and do, rely on in circumstances where force is required. It would allow a police officer to destroy a UA in extremis if it were deemed necessary, subject to risk assessments.
The powers in this Bill must be necessary and proportionate, and the police assess that Section 3 of the CLA 1967 is sufficient and proportionate in the case of a UA, in line with other areas of policing. This legislation is used for other aspects of policing that require force in the prevention of crime, such as the use of police batons. Therefore, there is no legal requirement to provide for this power in the Bill. Indeed, doing so would set an unusual precedent: why would we specify a drone and not anything else? This could be taken to undermine reliance on the CLA 1967 in other areas.
Secondly, destroying a UA is not generally operationally desirable because there is a need to maintain presentable evidence as part of a police investigation and any subsequent court proceedings. Destroying a UA could render digital and forensic examinations impossible, potentially compromising an investigation.
Thirdly, existing technology is such that destroying a UA is also often unnecessary. The Government’s counter-unmanned aircraft strategy committed to the creation of a new national police counter-unmanned aircraft capability in the UK. This capability makes use of technology that is more sophisticated and does not by necessity result in the destruction of the UA. It relies on defeat countermeasures, known as “effectors” or “jammers”, which have a number of impacts on the UA, such as causing it to return home, landing it or forcing it to hover—the specific outcome depends on the UA programming. These effectors defeat the UA and prevent whatever malicious action it was going to take in a way that is more proportionate, easier for the operator to use and less likely to cause unwarranted collateral damage than the use of technology that destroys the UA.
The noble Lord previously raised a concern that the Bill and the package of related counter-UA measures we are taking would not be impactful in a high-threat UA incident. I will now set out why I believe that the Bill, alongside these other measures, would have sufficient impact. First, our operating procedures across a range of critical national infrastructure sites, such as airports and other key sites such as prisons, are constantly evolving and have significantly improved since the Gatwick 2018 drone incursion. This allows for a faster, more effective response by both the site and the police. The Bill supplements this as it extends the range of public authorities that can be given authorisations to make lawful the use of jamming equipment to counter UA.
Secondly, as I mentioned, the police have new capabilities and counter-UA measures available to them, which provide a step change in our ability to respond to UA incidents, compared to Gatwick 2018. The Bill supplements this by providing the necessary powers for the police to use this capability to its fullest extent.
Thirdly, if an incident occurs that cannot be stopped by either our operating procedures or our police capability, we can use Section 3 of the CLA 1967 to use necessary reasonable force to stop or, where absolutely necessary and proportionate, damage or even destroy the UA.
I hope that, based on the reassurances I have given, noble Lords will be satisfied that this Bill provides the police with sufficient powers to deal with UA offences, and that there are existing powers in law under which the destruction of a UA is, and can be, justified, where it is absolutely necessary in the circumstances. Therefore, I hope that the noble Lord, Lord Tunnicliffe, will feel able to withdraw his amendment.
My Lords, I listened to that explanation and remain unconvinced that it will not cause significant delay in what would be a fast-moving event and that the police or other appropriate authority would not, in fact, be more effective if they had the power to destroy a drone in a serious emergency situation. However, I have a difficult problem in pressing this any further in that the Minister arranged a meeting with senior Home Office and police people who said that they did not want the power, and if they are not attracted to having it, it would be unreasonable of me to press this further, having failed to convince the Government.
Before I finish, I note that we have done Report in three hours and 30 minutes. An observer of our normal proceedings might say that we have not taken this Bill seriously. In fact, we have taken it very seriously, and I commend the Minister and her people for the enormous amount of time, effort and letter writing they have put in to responding to the many questions and concerns we have put to them. Accordingly, I can assure society in general and anybody watching this event that opposition scrutiny and, as far as I can tell, Liberal Democrat scrutiny of the Bill have been very thorough indeed and very efficiently handled by the Minister and her people, and I thank her for that. I beg leave to withdraw the amendment.
(3 years, 7 months ago)
Lords ChamberTo ask Her Majesty’s Government what estimate they have made of the reduction in the use of diesel oil if railways connecting (1) ports, and (2) quarries, to inland distribution centres were electrified.
My Lords, specific information on the reduction of diesel use from rail connections to ports and quarries is not available. However, Network Rail analysis suggests that a decarbonisation strategy to achieve a 97% reduction in rail traction carbon emissions by 2050 would save a total of around 2,000 million litres of diesel used by freight trains, compared to 2019-20 use levels.
I thank the Minister for her reply. A modest extension of electrification would bring jobs to the supply industry, many of them in the north, and a big saving in the use of diesel oil in the next 10 years. Will the Government step forward and agree this programme, which has been under discussion for a long time?
The noble Lord is completely right that it has been under discussion for a long time—it is very important, and it is a very long-term plan. However, we are informed by the Network Rail-led traction decarbonisation network strategy, which feeds into what the Government are working on at the moment: the transport decarbonisation plan, which will be published shortly.
My Lords, given that, as we have just heard, it may be some time before the routes mentioned by the noble Lord, Lord Bradshaw, are electrified, what measures can be taken in the meantime by the freight locomotive industry to minimise harmful diesel emissions—for example, particulate filters, selective catalytic reduction or, indeed, cleaner diesel?
Indeed, emissions are not just carbon: particulates play a huge role in poor air quality, and the freight-operating companies are taking active steps to reduce the amount of emissions their locomotives produce. For example, among other interventions the industry has begun using stop-start technologies—rather like we have on cars—on locomotives to reduce emissions when idling. We continue to work with the rail freight industry and the Rail Safety and Standards Board to look at what we can do and what research and development needs to be undertaken to reduce all emissions from rail freight.
My Lords, only around 40% of the UK’s rail network has been electrified so far, and many diesel locomotives are old and highly polluting. When will the Government set out their plans for achieving a net zero railway system?
As I have noted, the Government will publish in spring 2021 the transport decarbonisation plan, which will take a holistic and cross-modal approach to achieving net zero. However, this Government have electrified 700 miles of track in the last few years; we have a very ambitious electrification programme, which goes through the rail network enhancements pipeline to make sure that the right schemes are prioritised and that it secures value for money.
Will the Minister accept that these things, to use her words, take a long time because successive Governments, including this one, keep putting them off? Would it not make more sense to have a proper rolling programme of electrification that would meet the aspirations of the noble Lord, Lord Bradshaw, and help bring about stability in the industry for those responsible for electrification? Finally, would it not also help the Government’s carbon reduction targets?
My Lords, these things take a long time not because of delays but because of all the quite correct processes that these schemes need to go through. The noble Lord points out that the Government need a long-term electrification plan. That is exactly what the rail network enhancements pipeline is: it looks at all the potential schemes, prioritises those that produce the best overall benefits and secures value for money for the taxpayer.
My Lords, as the Minister has just said, emissions from diesel trains have an impact on the health of staff and passengers waiting at stations, especially large enclosed stations. What regular monitoring is undertaken of emissions levels in stations to ensure that rules on the operation of diesel engines are followed?
As I mentioned in response to a previous question, the industry is well aware that emissions consist of not just carbon but particulates as well, and these will impact passengers and staff at large stations, particularly the enclosed ones, as the noble Baroness notes. I do not have details of the exact monitoring that takes place—I am fairly sure that it does take place—but I will write to her with further details.
As the Minister said, Network Rail’s traction decarbonisation network strategy states that the UK rail freight sector will be largely diesel-free by 2050, but do the Government think that is an ambitious enough target? Will they be having discussions with Network Rail and the rail freight sector on how this target date of 2050—some 30 years away—could be brought forward?
The Government are in frequent discussions with the rail freight sector. This is an important element of our decarbonisation strategy, as it takes goods away from the roads and transports them with a far lower level of emissions. The Government would actually like to remove all diesel-only trains by 2040, so I hope that makes the noble Lord happy. However, we must be cognisant that we do not want to shift freight from rail to road to achieve that target, because that would raise emissions. We are monitoring the situation, but our ambition is to remove all diesel-only trains by 2040.
I congratulate Network Rail on the strategy. Will my noble friend do all she can to encourage it to improve rail links to existing ports and, especially, to encourage more multi-modal global rail freight facilities such as that at Doncaster?
This Government have invested £235 million in the strategic freight network in the five years from 2014. We appreciate that the intermodal connectivity hubs are incredibly important. The largest amount of rail freight—39%—goes to these intermodal hubs, so we welcome the development of strategic rail freight interchanges. They are incredibly useful, combining warehousing and connectivity for rail and road.
My Lords, moving road freight on to rail is an interesting idea, because that would reduce the amount of diesel used. The port of Dover already has links with HS1, so have the Government investigated the option of moving road freight on to the HS1 line?
I am not aware of whether we have investigated the HS1 line specifically, but the Government do support modal shift for freight. For 2021, we increased the modal shift revenue support scheme, which aims to shift road freight on to rail and water, by 28% to £20 million. This has removed 900,000 HGV journeys from the roads.
I congratulate the Minister on the welcome commitment to modal shift that she made in reply to the last question. Is she aware, however, that extended journey times caused by the need to change from diesel to electric traction are one of the greatest deterrents to growing the rail freight business? The EU Goods Sub-Committee recently took evidence from a major freight operator which said it would it prefer to use the railway from east coast ports like Felixstowe, but journey times by road to the midlands and the north were much shorter. Will the Minister encourage her department to look at modest electrification projects that would make a real difference to the rail freight business?
Of course, we will look at modest electrification projects when and if they are brought forward. The issue of journey times is important, but rail freight has the advantage of being able to carry less urgent goods—heavy construction materials, for example—over long distances. Therefore, it can be used for lots of different types of freight, which is to its advantage.
My Lords, by 2010 rail electrification in England had stopped. Thanks to the Liberal Democrats in the coalition, it got going again. It has stopped again. When will it start up again?
I do not recognise an awful lot in that question, but I would like to reassure the noble Lord that, of course, it has not stopped; projects do not stop just because you cannot see things being built. A huge amount of work happens before a project starts, as the noble Lord is well aware. This Government are committed to electrification and will look at appropriate schemes that secure value for money.
My Lords, the time allowed for this Question has now elapsed, and I apologise to the noble Lord, Lord Browne of Ladyton, that there was not time to take his question.
(3 years, 7 months ago)
Grand CommitteeThat the Grand Committee do consider the Airports Slot Allocation (Amendment) (EU Exit) Regulations 2021.
Relevant document: 38th Report from the Secondary Legislation Scrutiny Committee
My Lords, these draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018. They amend provisions of the EU airports slot regulation—No. 95/93, which I will call “the slots regulation”—to provide airlines with relief from the impacts of Covid-19 on passenger demand.
EU regulation 2020/459 was adopted to amend the slots regulation as a result of the Covid-19 outbreak to provide airlines with relief from the 80:20 rule—otherwise known as the “use it or lose it” rule—which requires airlines to use their airport slots 80% of the time. In normal circumstances, the 80:20 rule mandates that, provided an airline has used its airport slots at least 80% of the time in the preceding scheduling period—either winter or summer—it is entitled to those slots in the upcoming equivalent period. This helps to encourage efficient use of scarce airport capacity, while allowing airlines a degree of flexibility in their operations.
Due to the significant impact of Covid-19 on demand, in March last year amendments to the slots regulation instructed airport co-ordinators, when determining slot allocation for the upcoming season under the 80:20 rule, to consider slots as having been operated, whether or not they were actually used. By providing airlines with legal certainty that they would be able to retain their slots even if not operated, the aim of the amended regulation was to help mitigate the commercial impacts of the Covid-19 outbreak on the industry—because airlines might otherwise opt to incur the financial costs of operating flights at low load factors merely to retain slots—and support sustainability by reducing the likelihood of needless aviation emissions from near-empty aircraft. Those amendments to the slots regulation entered into force on 30 March 2020 and became applicable retrospectively from 1 March until 24 October 2020.
The amendments introduced by EU regulation 2020/459 and subsequent amending instruments also granted delegated powers to the Commission until 2 April 2021 to extend the period during which the slots allocated should be considered as having been operated by the requesting airline. Those delegated powers, which can no longer be exercised in the United Kingdom, could be exercised by the Commission where it found, based on Eurocontrol figures and best-available scientific data, that the reduction in air traffic levels is persisting as a result of the Covid-19 outbreak. This delegated power was used by the Commission before the end of the transition period to extend relief to airlines beyond 24 October 2020 to 27 March 2021.
The draft instrument being considered today applies to England, Scotland and Wales, and will transfer this delegated power to the Secretary of State, exercisable until 2 April 2021. Aerodromes are a devolved matter in Northern Ireland, and as there are currently no slot co-ordinated airports in Northern Ireland and the power is exercisable only until 2 April 2021, the Northern Ireland Executive have agreed that it is not necessary for this instrument to extend to, or apply in relation to, Northern Ireland.
To say a bit more on the contents of the SI, the withdrawal Act retained the slots regulation, as amended, in UK law after the end of the transition period. The draft instrument we are considering makes the changes necessary to ensure that the slots regulation continues to function correctly. This is essential to ensure the continuation of an effective regulatory regime for airport slot allocation.
This instrument is subject to the affirmative procedure because it creates or amends a power to legislate. The most significant amendment being made to the slots regulation provides the Secretary of State with the power to grant further relief to airlines if the reduction in air traffic caused by the Covid-19 pandemic were to continue. This power is intended to deal only with the impacts of the pandemic, and so was given to the Commission for a limited duration only. To transfer this power, the term
“Commission shall adopt delegated acts in accordance with Article 12a”
is replaced with
“Secretary of State may by regulations”.
This enables the Secretary of State to extend the period during which the UK airport slot co-ordinator, when determining slot allocations for the upcoming season, is to consider slots as having been operated, whether or not they were actually used. A decision to extend the period must be based on relevant data on passenger demand and scientific data on the impacts of Covid-19 on that demand.
Other changes being made to this regulation are mostly minor and technical in nature—for example, replacing the phrase
“which is the network manager for the air traffic network functions of the single European sky”
with the words “or other relevant data”. This enables the Secretary of State to take into account data from other sources, such as NATS, as well as from Eurocontrol.
The other amendments being made to the slots regulation are minor but equally important. They clarify that the Secretary of State’s power to make regulations to extend the relevant period may not be exercised after 2 April 2021, which is the same limit as on the Commission’s power. Therefore, as the exercise of the power must be based on data, any further relief provided under this power from the 80:20 rule would likely be for the summer 2021 season only.
Given the time-limited nature of this delegated power, the Government have tabled amendments to the Air Traffic Management and Unmanned Aircraft Bill, which is currently proceeding to Report stage in your Lordships’ House. These amendments would provide the Secretary of State with temporary powers to adopt relief, as appropriate, for seasons from winter 2021 onwards.
This instrument will ensure that airlines can be provided with further relief under the airport slots rules from the impacts of Covid-19 on passenger demand, if appropriate. I beg to move.
I thank all noble Lords for their contributions this evening to what I think was an hors d’oeuvre for the much longer discussion around slots alleviation which will happen later on this week on Report on the Air Traffic Management and Unmanned Aircraft Bill. But I will be able to cover some of the points raised, particularly by the noble Lord, Lord Tunnicliffe, in my remarks. I hope to answer as many questions as possible and to go for a complete run so that I do not have to write any letters. Let us see how we do.
The consultation on this is incredibly important. My department launched a targeted consultation on 30 December with the aviation industry and, of course, with the airlines, the IATA, the slot co-ordinated airports in the United Kingdom and the independent slot co-ordinator, Airport Coordination Ltd, on the proposed amendments to the regulations. The consultation is due to close tomorrow and a decision will be made as soon as possible thereafter.
I would like to point out that I agree with the noble Lord, Lord Tunnicliffe: I find sometimes that lobbying is done by external organisations literally the day before, or the day of, the discussion, and I find it very unhelpful. He, too, will understand that the consultation is extremely important. Heathrow will have contributed to it, and the timeline from then is that we will consider all the evidence we receive, decide whether we can justify an extension on the basis of the evidence before us, and then use the powers in this regulation that have been given to the Secretary of State. The Secretary of State will then make a negative statutory instrument, which will grant this further alleviation and associated conditions. We expect this to happen fairly quickly because the summer season approaches quite rapidly. Indeed, it begins on 28 March, so we intend to lay the negative SI in February.
It is important to note that some slots will then be freed up, and my noble friend Lady McIntosh asked what would happen to them. In normal circumstances, they would be allocated in the normal way, whereby there is a tension, or an allocation to incumbent airlines and to new entrants. We are well aware that we need to maintain a robust competitive position in the UK market and that will be a consideration, but there are only certain things that we can do quickly.
I recognise the issue that the noble Baroness, Lady Randerson, mentioned about Virgin, for example, at Gatwick. One of the conditions we are considering and consulting on is whether an airline that ceases to operate at a particular airport might be excluded from a future waiver unless it gives up its slots. All these things are out for consultation.
My noble friend Lord Naseby asked why Glasgow, a very important international airport, was not on the list. It is not a question of how international or what size the airports are but whether the demand for slots exceeds the capacity. It does not at Glasgow, and therefore it does not need to be on the list, so I do not believe that there is any need to change the list of airports at this time. I note, for example, that Bristol has summer only in terms of its restrictions or need to be on the list. Obviously it is kept under review, but that is why Glasgow is not there.
Returning to the point made by the noble Lord, Lord Tunnicliffe, about the WASB—the Worldwide Airport Slot Board—and some of its proposals, part of the consultation is to understand what people are doing and what they want domestically but also internationally. It is also true that we currently do not have the powers to change the ratio. All we can do under the withdrawal Act is correct deficiencies in the commission’s current powers; the commission will obviously have the same restrictions that we have. However, we need primary legislation to change the waiver. I will come on to that very shortly— right now, in fact.
The noble Lord, Lord Tunnicliffe, asked about the relationship between what noble Lords are discussing today and what will be in the ATMUA Bill. He rightly pointed out that it was not in the Explanatory Memorandum; that is because we did not know. It became clear to us that, to extend changes beyond summer 2021, we would need to lay primary legislation; as noble Lords will know, this is not an easy thing. We became aware that the primary legislation could be added in to the ATMUA Bill. As it was going through your Lordships’ House, it was still in the first House, and we felt, although it is very unusual, that it could go in before Report. I think noble Lords will see, when it is debated on Thursday, that this is appropriate and the right thing to do.
What noble Lords are discussing today is the SI that solely takes the commission’s powers and gives them to the Secretary of State, and is for summer 2021. As I explained, the powers fall away on 2 April 2021, so we will need primary legislation for every period after that. This is because one is not able to make a decision about winter 2021-22—often October—based on the data that we have now. I take the point about consultation prior to taking decisions before each season happens—I will explain that further in due course—because we will end up in a cycle whereby, for every season, there will be the data received, a consultation and then an affirmative SI laid before your Lordships’ House. It will then be debated, which will cover the season ahead of us. In that, we will be able to explore questions around competition, the conditions attached and all the things that are happening to the aviation sector at that particular time. That is why it is so important that we have that cycle of consultation, laying the right proposals for the period ahead as, hopefully, we come out of the pandemic, people start to travel again and airlines come back stronger. That is why the ATMUA Bill contains these amendments.
The noble Lord asked why we are saying until 2024-25—that is, do we expect the pandemic to last that long? That is just future-proofing the legislation. Obviously, I expect that we will see a change over that period. It may be that we do not need to change anything in 2024-25, but it is better to be safe than sorry.
Slots and the reform of slots policy have been on the Government’s mind for quite a while. They will be considered in the round with any future review of aviation policy, so we may do something before 2024-25 anyway. We may well take a different approach but within established international slots guidance, because of course it is a very international sector. However, we support competition and believe that there may be some changes that we wish to make in slots allocation. That is definitely not for now; we will leave that for another day.
On aviation support, I note that we had two slightly differing views: the noble Lord, Lord Blunkett, was keen on capacity for passengers and freight—I am on his side on this one—while the noble Lord, Lord Bradshaw, seemed a bit more cautious. However, I note that the caution of the noble Lord, Lord Bradshaw, was around climate change and noise. The Government have made some significant interventions on both of those and we continue to do so. We will consult on aviation decarbonisation shortly, and of course we have the transport decarbonisation plan coming through. There is a lot of work to do on aviation decarbonisation. Again, on noise, we established ICCAN and various other interventions such as the airspace modernisation programme, which again will impact on noise. I suspect that in due course, with quieter, cleaner and greener planes, the impact of aviation will be less than the noble Lord fears. I am therefore with the noble Lord, Lord Blunkett, in that we should be able to build back our capacity for both passengers and freight. That is incredibly important, which is why the Government are focusing, first, on the immediate restart of the aviation sector. We have introduced the test to release programme and in due course, as more passengers are able to travel safely, we will look at making sure that we can protect transfers of passengers within travel corridors, for example, or whatever other ways we can think of to protect public health while supporting aviation.
However, in the medium and long term, an important piece of work is being done with regard to a recovery plan. That is looking at things such as connectivity between Northern Ireland and the rest of the UK, protecting consumers, supporting the sector by confirming that we will stand behind the Air Travel Trust Fund, supporting the industry through skills and making sure that they are maintained, and of course working with the CAA on regulatory easements.
I hope that I have answered all questions today. I am grateful for everybody’s input. We will return to this subject on Thursday, and I look forward to it. I commend the regulations to the Committee.
(3 years, 7 months ago)
Lords ChamberMy Lords, on 16 December 2020, the Supreme Court overturned the earlier Court of Appeal decision and declared:
“The airports national policy statement is lawful”.
The Government are carefully considering the court’s judgment. We take seriously our commitments on the environment and reducing greenhouse gas emissions, and we will consult on an aviation decarbonisation strategy in due course.
I draw attention to my entries in the register. I thank my noble friend for her not entirely unexpected answer. However, will she agree with me that, especially in this year of the UK hosting the COP 26, our aviation expansion policy should be re-examined? Does she agree with the sixth carbon budget that any future expansion plans in London should be balanced by reductions in capacity elsewhere in the UK, which will not be good news for a levelling-up agenda, never mind our commitment to net zero by 2050?
I agree with my noble friend that this year is very important in terms of ensuring that we capitalise on our role as president of COP 26 and establish the sixth carbon budget in law, which will be done by June 2021. The role of international aviation within that is being very carefully considered by my department.
My Lords, of all the ways of restricting carbon dioxide emissions from air travel, is not restricting the capacity of airports the silliest? Its main consequence would be that more planes would be stacked up above busy airports, using more fuel, and all other flights to those destinations would have to carry more fuel just in case they were stacked up too.
I agree with my noble friend that there are many ways that we can tackle carbon emissions. He mentions stacking. That is why we are taking forward the airspace modernisation plan, which will have capacity benefits for airports, reduce costs for airlines and reduce delays for passengers—because stacking will become a thing of the past.
My Lords, will the Minister tell us whether the Government accept the climate change committee’s recommendation that international aviation emissions should be formally included in the UK climate targets when setting the sixth carbon budget? These are real emissions and account for 7% of the UK’s greenhouse gas emissions; by 2018, they had increased by 88% above 1990 levels.
As the noble Lord will know, the climate change committee published its report on 9 December, which is not that long ago, and Christmas was in the intervening period. We are looking very carefully at the recommendations. International aviation emissions is a very knotty problem which can lead to unintended consequences if countries act unilaterally. We really need to see international action, and the UK is at the forefront.
My Lords, does the Minister recall that, when the Prime Minister made his extremely welcome announcement on 11 February that the Government were proceeding with HS2, he said:
“Passengers arriving at Birmingham Airport will be able to get to central London by train in 38 minutes, which compares favourably with the time it takes to get from Heathrow by taxi”?—(Official Report, Commons, 11/2/20; col. 712.)
In view of that, can the Minister give a commitment that her department will look very carefully at HS2’s potential for shifting traffic from domestic flights to trains, as that would make a huge difference to the carbon emissions target?
The noble Lord is absolutely right that HS2 will provide huge benefits and may well lead to some people choosing to make a domestic train journey rather than taking a domestic flight. He is also right that it connects Birmingham Airport to north-west London in particular; I am sure the residents there will appreciate that.
Within the transport industries there is a growing consensus that travel patterns will change post-pandemic, with greater emphasis on leisure travel. Some 60% of Heathrow’s customers were business passengers, but we all use Zoom now. Heathrow expansion was already a white elephant before the pandemic. Does the Minister accept that it must now be reassessed, applying modern environmental standards?
Any expansion by Heathrow would already be assessed according to modern environmental standards because, of course, the ANPS is future-proof: London Heathrow must show that its plans are compatible with updated carbon targets and international obligations before it can obtain a DCO for the project.
My Lords, regarding the path to net zero, it is likely that a significant number of the roughly 223,000 jobs in the aviation sector may be lost. What is the Government’s strategy to replace them with sustainable jobs in an environmentally sustainable aviation sector? Now that the Government are providing further support—paid, of course, by the taxpayer—why are they failing to attach conditions, including banning the “fire and rehire” tactics used by aviation companies to push through wage cuts for already low-paid workers?
I am less pessimistic than the noble Baroness about the future of the aviation sector. The Government are working very closely with it both as it recovers from the immediate effect of the pandemic and on the medium-term strategy for regional connectivity, decarbonisation—as noted in earlier questions—and many of the other issues that are key to getting people back in the skies. On the noble Baroness’s comment about hiring-and-firing practices within some airlines, that is a matter for them and their human resources policy.
My Lords, as the urgent doom and gloom predictions of 20 years ago have not materialised, and as attempts to alter climate change are hugely expensive, how far have the Government got with the essential cost-benefit analysis?
My Lords, when we look at carbon emissions, we must do so in the round: air-quality and noise considerations also need to be taken into account. All of these are important. I accept that there are investments to be made, but I believe that, in the round, whether it be on carbon, air quality or noise, these investments are worth while.
My Lords, in light of the urgent need to reinvigorate the British economy post-Covid with ambitious and large-scale infrastructure projects that will require plentiful and flexible travel opportunities, and of the previously mentioned devastating impact of lockdown measures on aviation, tourism and jobs in that sector, will the noble Baroness assure us that net zero targets will not be used as a barrier to airport expansion and rejuvenation? Will the Government discourage the eco green version of unnecessary travel rules under the guise of hectoring us to fly less, and instead encourage us to fly more, when safe to do so, whether for pleasure, holidays, business or even to attend global summits to discuss carbon reduction?
Of course, the Government have a wide range of transport infrastructure projects that we are taking forward under the guise of building back better. The noble Baroness is right, in that there is always a balance: in the future, when aircraft emit less, it may be absolutely acceptable to take as many flights as one likes. Sometimes, we are told we should not fly, but, of course, that is just because of the carbon. Actually, flying is a very good, quick and efficient way of getting from A to B.
My Lords, the airports NPS proceeds on the stated basis that:
“Aviation demand is likely to increase significantly between now and 2050”,
and that
“Any increase in carbon emissions alone is not a reason to refuse development consent”.
However, the sixth carbon budget report says quite specifically that there can be no airport expansion unless emissions from flights can be reduced to compensate. Does that not require the Government to revisit and revise the NPS, considering this new conditionality, which they have accepted?
As I have said previously, the Government are extremely grateful for the expert advice provided by the climate change committee. We are considering all the recommendations in its report and we will report back shortly.
My Lords, I welcome the Government’s commitment in the energy White Paper to net zero for flights to European Economic Area countries. Therefore, could the Minister tell the House when the UK emissions trading scheme is likely to be aligned with our net zero trajectory, how it will take account of the non-CO2 warming effects of aviation and when net zero will be applied to all aviation, regardless of destination?
The noble Lord raises a series of questions that probably cannot be answered briefly, so I will write to him.
My Lords, will my noble friend undertake to keep under review airport passenger duty, which is now charged at double the amount compared to EU destinations and will act as a brake to ramping up airline travel as soon as the Covid pandemic is over?
As my noble friend is aware, the Government are keeping airline passenger duty under review. We are aware that it has significant negative impacts, particularly on domestic flights, and we will consult in due course.
My Lords, all supplementary questions have been covered, and we now move to the third Oral Question.
(3 years, 7 months ago)
Lords ChamberTo ask Her Majesty’s Government whether they have held any discussions with P&O Ferries about the discontinuation of the Hull-Zeebrugge passenger ferry.
My Lords, I recognise the concern that the loss of the Hull to Zeebrugge route has caused. My colleague the Maritime Minister, Robert Courts, met P&O Ferries on 15 December, when he raised the closure of the route. This is a commercial matter for P&O and, although the local impacts are very regrettable, I am satisfied that our national freight resilience has not been compromised.
My Lords, it may be a commercial matter for P&O, but when it closed the route P&O said it was doing so in light of the Covid pandemic. Given that the Government are spending literally billions of pounds to run very large numbers of almost entirely empty trains up and down the country, do they not think they should be pressing P&O to keep this route open? This route is not a luxury but is crucial for the flow of tourism from France and elsewhere in Europe, which the north wishes to see reinstated as soon as possible when restrictions are eased.
My Lords, although the loss of this route is regrettable, in present circumstances, with passenger traffic severely constrained, it would not be in the public interest, nor fair to other operators, to maintain empty capacity there at public expense. There continue to be services for both passengers and accompanied freight from Hull to north-west Europe through Rotterdam and freight services to Zeebrugge from the Humber.
My Lords, ferries are the lifeblood of many communities around the United Kingdom, and the Government have trumpeted a new shipbuilding strategy—at the moment, without any new ship orders. The noble Baroness has highlighted to me before in this House the Government’s push to reduce merchant ship emissions as part of the green revolution. To focus on just one of the many opportunities that I think there are to pull these threads together, I ask her to encourage the Government to replace the almost 50 year-old Scilly Islands ferry, which will soon not be able to run at all, with a new, green ship—I do not mean its colour, of course—to be built at Appledore, a very efficient and capable West Country shipyard with currently no work whatever, ensuring the continued future link between the mainland and the Scillies and killing three birds with one stone.
I thank the noble Lord for his question, which is slightly beyond the remit of what we are discussing today—but never mind, I will take his suggestion back to the department. The department is very keen to make maritime more green and it is the case that the ferry service to the Isles of Scilly is a lifeline service. It is essential that it continues, and it should do so in the greenest ships possible.
The Minister said that the local consequences of the decision to close this route were “very regrettable”. In Hull, they are more than very regrettable. Hull has the highest unemployment rate in the country, along with Blackpool, so can she say how much strategy is being put into deciding not just which jobs will be kept open but where jobs will be kept open? As part of the levelling-up agenda, Hull is clearly in need of help.
I agree with the noble Baroness that it is very important that we make sure that job losses are kept to an absolute minimum, and I understand that that is indeed the case. The Government remain committed to Hull being one of our key ports within England; it is the 13th largest port in the country. It should be noted that there remain daily sailings to Rotterdam from Hull and that, in general, Hull will remain a very strong local economic area.
My Lords, will my noble friend give us a commitment today that the Government will do all they can to reinstate a ferry service that would be viable at the first available opportunity? Will she equally ensure that the spare capacity now in Hull will be used for freight, to increase freight capacity from the north and ease the bottleneck at Dover?
My noble friend will be aware that there are currently 19 routes going from the east coast of England across the North Sea. Plenty of freight routes are already in existence and therefore I do not believe the loss of this route will have a significant impact on freight, as I have said. However, it is worth delving a little more deeply into the viability of this service. Tourists—cars and passengers—have been declining on this service since 2014, and substituting that loss with freight did not compensate the business sufficiently. Also, the ships on this route are ageing and economically obsolete. I fear that this service was not in it for the long term in any event.
Quite recently, the Government were happy to fund a ferry-less ferry company, but now they seem unwilling to help a well-established service. The Minister has said that there are plenty of freight routes but, at the point when hauliers are grappling with the new post-Brexit bureaucracy, should not the Government be doing everything possible to broaden ferry options rather than reduce them?
As I explained to the previous questioner, there are already several—indeed, 19—routes that freight can take across the North Sea, and those will continue. I therefore do not see that the concerns of the noble Baroness have any merit at all. The Government also have government-secured freight capacity; as she mentioned, these ferries are for category 1 goods and will be needed if there are any problems at the short straits.
It is clear from the Minister’s answers that the Government did nothing to try to persuade P&O’s owners in Dubai not to pull the plug on the long-standing Hull-Zeebrugge service. Will the Government take into account P&O’s decision to withdraw this service, and thus not back Britain and its employees at this critical time, when deciding in future whether to award any taxpayer-funded contracts or other financial support to P&O?
The Government did not do nothing; they had conversations with P&O, which operates many ferry routes in the UK. It reached its decision based on the factors I have set out. However, when we were at the height of the pandemic for the first time round, the Government supported this route to see whether it could be viable in the long term, funding it to the tune of £1,272,000. Despite this funding, it has become clear that the medium-term viability of this route is simply not there.
I call the noble Lord, Lord Loomba. Lord Loomba? No? I call the noble Lord, Lord Wallace of Saltaire.
I thank the noble Lord for allowing me to reconfirm, following the many times I have already done so, that the Government believe that there are freight and passenger services already operating from the east coast to the EU which will be able to support Yorkshire and the whole of the north.
My Lords, more generally, what measures can the Government advance to ensure that the UK’s distribution arteries, both inbound and outbound, are not held hostage to the commercial vagaries of the private sector—and the public sector, for that matter—and that marketplaces and strategic destinations are not only kept open but added to, as necessities now dictate?
The noble Viscount will know that the maritime sector is an extremely well-developed and highly competitive private sector. The Government work very closely with it; we endeavour to intervene when there are problems, but on the whole we do not. For example, we worked very closely with the ports recently when there was a 15% increase in year-on-year container capacity. That is now beginning to resolve itself. Furthermore, we also provided £200 million in one-off grants to support ports through the port infrastructure fund. There are things we can do, but in general the maritime sector remains a private sector.
My Lords, the time allowed for this Question has elapsed.