Aviation Sector

Lord Grayling Excerpts

Thursday 10th September 2020 Commons Chamber

[Chris Grayling (Epsom and Ewell) (Con)]

May I start by welcoming the Minister to his post? He is a welcome addition to the Department for Transport team. When I left the Department 14 months ago, I resolved that I would not speak in this place about transport issues for a while, because it felt appropriate not to tread on the toes of my successor. I am here today because I believe passionately that this is an issue that must be addressed, and quickly. This is a crucial industry not just at our airports, but across our country for a whole range of businesses and a whole of people whose livelihood depends upon it.

I echo the comments of the former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May), on the importance of testing. This has to be the way forward. It is vital for the industry not only that we get short-haul flights moving again, but that we open up transatlantic routes, which are fundamentally important to the industry. We can only do that through testing. I cannot understand why we are not at the very least trailing testing on a number of routes to demonstrate where the issues are. My message to the Minister—and, through him, to all those on the Treasury Bench, in No. 10, in No. 11 and elsewhere in Government—is that we have got to do this, and we have got to do it now. There is absolutely no reason why a regime of trial testing in this country could not be introduced in a few days, or why the results could not be carefully monitored on selected routes to give us a blueprint to take things forward. We must do this, and we must do it now.

We also have the issue of our airports. Our airports, and many of the businesses that support them, are operating at a fraction of their normal capacity because the Government are telling them that they have to do so. In that situation, we cannot apply the normal regulatory regime. For example, we cannot tell our airports to pay their full business rates when the Government are telling them not to operate their business. This autumn we have to take a pragmatic and realistic approach for the businesses affected.

[Steve Double (St Austell and Newquay) (Con)]

Does my right hon. Friend share my view that much of the real pain of this situation will be felt by our smaller regional airports across the country, which will play a vital role in helping our nation recovery from the current situation? Will he join me in urging the new Minister—I, too, am delighted to see him in his place—that bringing forward the review of regional connectivity should be at the top of his to-do list?

[Chris Grayling]

I absolutely agree, because this is not actually about our principal airports; it is about the regional airports, which are the cornerstone of their local economies. Heathrow airport will be there in 10 years’ time whatever happens, but we cannot say the same of our regional airports, which are facing a financial crisis as we go through this pandemic. We cannot expect it to be business as usual for the taxes they pay, the regulations they follow and so on. A sensible series of steps will have to be taken this autumn to ensure that those businesses are still here in a year’s time when this crisis begins to abate, as we all hope it will.

I also want to echo some of the comments of the Chair of the Select Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman). It is inevitable, sadly, that there will be job losses as a result of what is happening at the moment. I wish it were otherwise—we all wish it were otherwise—but it is not. However, it must also be the case that every airline should strain every sinew to ensure that they protect as many jobs as they can, because these are the people on whom those airlines and airports will depend as they seek to rebuild their business, hopefully in 2021. So my message to all those employers is: do what you have to do to keep your businesses afloat, so that there is still an employer there, but do not go beyond what you need to do to deliver that recovery. That would be absolutely the wrong thing to do in this incredibly difficult time for our country.

We must also consider the broader sector, because this is not just about airlines and airports. It is about a whole range of other businesses, including the suppliers to the aviation sector, the firms that make the planes, parts of planes and equipment at our airports, and the travel businesses, large and small, that depend on this sector.

[Mr Richard Holden (North West Durham) (Con)]

My right hon. Friend is making an important point about the broader sector, because across the north of England and north Wales, a huge amount of the supply chain for the airline sector and the people who actually make the planes is really vulnerable at the moment, including Gardner Aerospace in my constituency, which is at risk of losing half its staff. So this is a really important point for the Government to take away from this: this is a much broader sectoral issue.

--- Later in debate ---

[Chris Grayling]

These are crucial points. If we are seriously to rebalance our economy, we cannot afford to lose some of the fine manufacturing businesses in my hon. Friend’s constituency and elsewhere that service our aerospace sector so well and make it at such a fundamentally important part of the manufacturing side of our economy.

Of course, the Government can do something in this field because as a nation we procure, for military and civil purposes, a significant amount of equipment. This autumn, as we go into the Budget round and look to step up capital spending to help us through the recovery, we have the ability to take procurement decisions that will help the businesses in my hon. Friend’s constituency and others. My message to Ministers would be that, as we look at how best to take ourselves through the recovery, the purchasing power they have to invest in equipment that we will need for the future could make a real difference if they were to bring forward some of those orders now.

My final point is that we absolutely have to rebuild the sector, get these businesses going again and get people flying again, but there is also a duty on the industry and all of us to ensure that it is, as far as is possible, a green recovery. There is no simple way of solving the environmental impact of the aviation sector. It cannot suddenly become net zero or green overnight, but it has to take steps in the right direction, whether through the electrification of airports, the reduction of fuel consumption of planes or other methods that can make the industry less environmentally impactful. My message to the industry and to the Government is that they should work together to ensure that the industry really is on the mend and that we get people flying again, but do so in the most environmentally sustainable way possible. This is a crucial industry, and it must get back to something like normal, but it needs to do so in a way that is consistent with all our futures.