Transport: Isles of Scilly Ferry Link

Earl Attlee Excerpts
Monday 25th June 2012

(12 years ago)

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Lord Berkeley Portrait Lord Berkeley
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To ask Her Majesty’s Government what action they are taking to create a lifeline passenger ferry link to the Isles of Scilly in line with the Scottish Government’s ferries policy.

Earl Attlee Portrait Earl Attlee
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My Lords, I am aware that passenger transport services to and from the mainland are regarded by residents of the Isles of Scilly as a lifeline. Ferry services, unlike most of those to the Scottish Islands, are able to operate commercially without subsidy and have done so for many years.

Lord Berkeley Portrait Lord Berkeley
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I am grateful to the Minister for that Answer. Perhaps he is not aware that Cornwall has the lowest GDP in the UK and has been awarded continuing convergence funding, and that it also has the fourth lowest average wage in the UK as well as very expensive housing.

His Answer is correct but the ferry only runs for seven months every year and the return fare is £90. This compares with Islay in Scotland where there are several ferries a day all the year round and the return fare is £12.50. Will he not take forward the report from the Council of the Isles of Scilly proposing an affordable lifeline service every day of the year and as a start allow the Council of the Isles of Scilly to use some of the ERDF money that is still outstanding for some key extensions before the deadline runs out?

Earl Attlee Portrait Earl Attlee
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My Lords, I am aware of the economic difficulties in Cornwall. As regards the comparison with the Scottish situation, it is difficult to make valid direct comparisons when the circumstances vary and the service is rather more complicated.

It is important to remember that transport links to the Scilly Isles are provided on a commercial basis, whether by sea or by air. Cornwall Council rules itself out of leading the smaller-scale infrastructure schemes so development work has been undertaken by the Council of the Isles of Scilly and Penzance town council. These involve improving provision for freight handling, extending the quay at St Mary’s and dredging at Penzance to accommodate a deeper-hulled vessel. The noble Lord is quite right that the ERDF funds are time-limited.

Lord Bradshaw Portrait Lord Bradshaw
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Will the noble Earl consider the fact that the present ship engaged in the seven months of the year service will not be replaced on a commercial basis because the helicopter and the ship are running on borrowed time? Will he give serious consideration to extending the PSO arrangements in Scotland to the Scilly Isles? They are part of our economy but they will be more or less cut off when the existing ships and infrastructure fail.

Earl Attlee Portrait Earl Attlee
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My Lords, we are not currently minded to consider a PSO because there is no need to do so as the ferry service is currently run on a commercial basis. The steamship company has recently announced that it will invest in the ship to maintain it in operational use until at least 2018 and we are not aware of any major structural defects that will necessarily prevent seaworthiness beyond that time.

Baroness Dean of Thornton-le-Fylde Portrait Baroness Dean of Thornton-le-Fylde
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My Lords, does the Minister accept that the statement of commercial viability is a thin veneer that masks the real poverty levels in the Scilly Isles? As my noble friend said, Cornwall has one of the lowest GDPs in the country. The fact that the ferry runs for seven months of the year is due to the tourist trade. However, behind that is the local community, which lives in poverty and depends on the mainland for its economy and health services. Will the Minister please review the statement that he has just made to the House?

Earl Attlee Portrait Earl Attlee
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My Lords, I cannot agree to review the statement that I made to the House because it is considered government policy. I accept that there are difficulties in the Isles of Scilly, particularly the dependence on the tourist trade.

Lord Faulkner of Worcester Portrait Lord Faulkner of Worcester
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Is the Minister aware of the great concern in both the Isles of Scilly and Cornwall over the long-term viability of the helicopter service that presently serves the islands in addition to the ferry? I understand that it is about to move from Penzance to Newquay but there is concern over whether it will survive in the long term. Does the Minister’s briefing cover that matter?

Earl Attlee Portrait Earl Attlee
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My Lords, my briefing covers that. There are two air services. There is a fixed-wing aircraft, which goes from St Mary’s to a few destinations on the mainland, and there is the helicopter service, which is by definition much more flexible in where it can land. There is an issue over the condition of the runway at St Mary’s; it will not last for ever.

Lord West of Spithead Portrait Lord West of Spithead
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My Lords, does the Minister agree that the unrelenting application of free market principles to our merchant marine, which has resulted in it having its smallest ever numbers of officers and men, is very damaging, bearing in mind that it is the fourth service and absolutely necessary strategically for global operations? Are the Government doing anything whatever to support the merchant marine?

Earl Attlee Portrait Earl Attlee
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My Lords, the noble Lord, Lord Faulkner of Worcester, wondered how far my brief would stretch. Unfortunately, it does not stretch as far as the condition of the Merchant Navy.

Lord Davies of Oldham Portrait Lord Davies of Oldham
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My Lords, surely the Minister has already recognised that the viability of the service depends on the tourist trade and that the people who live on the Scilly Isles—on very low incomes—are paying the tourist price for the vessels, namely £90. As my noble friend indicated, that is more than four times the amount that you would expect to pay to make a similar journey in Scotland. Is it not time that the Government looked at this very seriously? There are clear potential threats to the existing services, which in any case do not meet the islanders’ need.

Earl Attlee Portrait Earl Attlee
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My Lords, I am confident that there will be a service in the short term. The noble Lord asked about the cost of a ticket for the ferry. I understand that a day return is £35 and a period return costs £85 to £95. However a Scilly Isles resident’s return is £20.50, so they do get a discount.

Directors’ Pay

Earl Attlee Excerpts
Wednesday 20th June 2012

(12 years ago)

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Baroness Wilcox Portrait Baroness Wilcox
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My Lords, I thank the noble Lord, Lord Stevenson, for his support for some of the things that we have done. Obviously he feels that we have not gone far enough, which is what I expected him to say. Of course, that allows me to say that in all the years that his Government were in power, they did not do any of this. Therefore, I hope that he will feel that we have at least made a decent start and will encourage us as much as he can.

I will answer some of his questions. We consulted extensively with business and investors. The Association of British Insurers today said that the package was practical and workable, and would help investors tackle excessive pay. I know Sir Roger Carr very well. I was on the board of Cadbury Schweppes with him, and we were also—I think—on the Audit Committee and the Remuneration Committee at the same time, so he and I have some history, and I am sure that we will agree over the years.

The noble Lord asked why we had gone for a binding vote and why we had changed the time period from three years. Shareholders will get a binding vote on a company’s pay policy, as we said, including on exit payments. This binding vote will happen annually unless companies choose to leave their pay policy unchanged, in which case the vote will happen at least every three years. The idea on consultation was that it would encourage companies to set out long-term pay policies clearly linked to company strategy rather than short-term, one-year pay policies. We hope that it will put a brake on continuous upward pay ratchets. However, we will watch and see whether it succeeds.

On employee representation, we have acknowledged that employees’ views on pay are important. That is why I proposed that companies should report on whether they have sought the views of the workforce. We will monitor this very carefully. As for employees on boards, nothing stops companies doing this already, but we are not saying that it should be enforced—we do not believe in mandating this across all firms. We hope that the things that we put forward today will give people confidence to go forward, and certainly will give confidence to employees, who have a lot of powers that they have not yet used, which are similar to those of shareholders who have gone forward and said, “Enough is enough”.

Earl Attlee Portrait Earl Attlee
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My Lords, perhaps I may remind the House of the benefit of short questions to the Minister, in order that she may answer as many as possible.

Civil Aviation Bill

Earl Attlee Excerpts
Monday 18th June 2012

(12 years ago)

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Moved by
Earl Attlee Portrait Earl Attlee
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That the Bill be committed to a Grand Committee.

Motion agreed.

Civil Aviation Bill

Earl Attlee Excerpts
Monday 18th June 2012

(12 years ago)

Lords Chamber
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Moved by
Earl Attlee Portrait Earl Attlee
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That it be an instruction to the Grand Committee to which the Civil Aviation Bill has been committed that they consider the Bill in the following order:

Clauses 1 to 13, Schedule 1, Clauses 14 to 30, Schedule 2, Clauses 31 to 47, Schedule 3, Clauses 48 and 49, Schedule 4, Clauses 50 to 55, Schedule 5, Clauses 56 to 59, Schedule 6, Clauses 60 to 72, Schedule 7, Clauses 73 to 76, Schedules 8, 9 and 10, Clauses 77 and 78, Schedule 11, Clauses 79 to 82, Schedule 12, Clauses 83 to 91, Schedule 13, Clauses 92 to 99, Schedule 14, Clauses 100 to 112.

Motion agreed.

European Rail Market: EUC Report

Earl Attlee Excerpts
Thursday 14th June 2012

(12 years ago)

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Earl Attlee Portrait Earl Attlee
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My Lords, I start by congratulating the committee, which was so ably chaired by my noble friend Lady O’Cathain. The Government welcome the sub-committee’s thorough report on the European rail market and the role of the Channel Tunnel and have provided a full response. As ever, I am on a strict timetable.

We believe that a truly open, fair and liberalised market would increase competition in international passenger services across the EU. We support the Commission’s overall aim of clarifying and strengthening the regulatory framework for rail access through the first railway package recast. In particular, we endorse the need to ensure that there are adequately resourced and properly independent regulatory bodies in order to facilitate market entry and competition.

The Government recognise that the Channel Tunnel is a unique piece of international transport infrastructure and that it is in the country’s interests that it remains in operation. By virtue of the 1986 treaty of Canterbury and the ensuing concession agreement, the Government are directly concerned with the Channel Tunnel.

The UK strongly supports the growth of cross-Channel rail services. The provision of international services and their service patterns is a commercial matter for operators. In order for a train to transit the Channel Tunnel, the operator needs to comply with the relevant European, national and Channel Tunnel-specific requirements.

My noble friend Lady O’Cathain and other noble Lords talked about the proposed Deutsche Bahn service. DB applied to the intergovernmental commission in October 2011 to amend its Part B safety certificate, which covers management of safety issues, to include operation of passenger services through the tunnel. Since the intergovernmental commission has been unable to reach a decision, the application has now been referred to the British and French Governments for consideration. That process is ongoing. Deutsche Bahn will also need to obtain an interoperability authorisation to place its new trains into service in the tunnel. Although IGC officials from the UK and France have been working positively with Deutsche Bahn and Siemens to help them prepare the necessary dossier, as yet no formal submission for authorisation of new rolling stock has been made to the IGC by either Deutsche Bahn or Siemens.

The noble Lord, Lord Brooke of Alverthorpe, and, I think, another noble Lord asked me about the purchase of SeaFrance Ferries. It is a matter for the competition authorities, either DG Competition at the EU or the Office of Fair Trading, to determine whether any change in market dominance raises competition issues. The noble Lord, Lord Brooke, also asked about the 2011 report of the IGC. I do not expect inspiration to arrive and therefore I will have to write to the noble Lord.

My noble friend Lady Scott of Needham Market talked about modal shift for passenger and freight. We recognise that modal shift from air and road to rail can generate important environmental and congestion benefits. However, rather than trying to force people away from car or air travel, we are working to support sustainable travel choices. A number of barriers can prevent behaviour change, including powerful ones such as habit.

Studies have indeed indicated that the Channel Tunnel has spare capacity to accommodate growth. Although there have been indications that the rail freight share of the cross-Channel market would be higher if rates were lower, pricing judgments are inevitably subjective and it is always difficult to make accurate volume and revenue forecasts. However, in partial answer to the question from my noble friend Lord Freeman, there is spare capacity for growth, as about 50% of capacity is being used at the moment.

The noble Lord, Lord Faulkner of Worcester, suggested that access charges for Eurotunnel are too high, and other noble Lords said as much. We have no clear evidence that Eurotunnel’s charges are inappropriate. However, the IGC is currently investigating the level and appropriateness of Eurotunnel’s charges, and its joint economic committee published a report on the first phase of its work in October 2011. Further work is under way but will take some time. Until those investigations are concluded, and on the basis of the evidence currently available, we would recommend caution in assessing whether the level of charges is appropriate.

In answer to another question from the noble Lord, Lord Faulkner of Worcester, the Government support long-distance high-speed rail. At present, services on HS1 and the Channel Tunnel are relatively inaccessible for those outside London and the south-east. By providing direct access to the wider European network for services from Manchester, Birmingham and other cities, a link between a national high-speed rail network and the current HS1 could address this. In January this year, the Government announced that phase 1 of the HS2 network will include a direct link to the continent via the HS1 line to the Channel Tunnel. The Government’s view is that the strategic case for a direct link between the proposed high-speed rail network and the HS1 line to the Channel Tunnel is strong.

My noble friend Lord Freeman asked about the Waterloo International terminal. I had been briefed on this but, sadly, some time ago. My noble friend will recall that the connection to HS1 was slow, and there are also technical issues regarding bringing the platforms into domestic service.

I should like to say a few words about the role of the Channel Tunnel Intergovernmental Commission and the IGC legal framework and governance. The governance structure for the Channel Tunnel has been sufficiently flexible to accommodate subsequent developments in European, UK and French law and regulation, and it is expected to continue to be so. The Channel Tunnel Intergovernmental Commission and the Channel Tunnel Safety Authority are currently seen as providing an effective structure for regulating the Channel Tunnel in line with the European framework. If a need is identified to improve the effectiveness of the IGC or to adjust the powers available to it as regulator, the Government will promote any necessary legislative changes.

The speed of IGC decision-making is conditioned in part by EU regulatory processes and requirements and by the processes and responses of the concessionaires and other stakeholders. The IGC process with regard to the authorisation of proposed new services through the tunnel cannot start until the relevant documents have been submitted.

I think that I will have to part company with my noble friend Lady O’Cathain and the rest of the committee at Canterbury. The Channel Tunnel is a binational infrastructure and therefore needs some form of binational governance. This is necessary regardless of which authorities have, in law, the regulatory functions. Even when the IGC is exercising legal powers in its own name, its decisions are, in practice, informed by discussions between the French and British national authorities. In this connection, we are working with our French colleagues to conclude as soon as possible transposition of the revised railway safety and recast railway interoperability directives for the Channel Tunnel. We see no need to renegotiate the treaty, and I suspect that the French have no appetite to do so either, as observed by my noble friend Lady O’Cathain. The noble Lord, Lord Davies of Oldham, referred to the treaty and to direct governance of the tunnel but I do not think I heard him say what the policy of Her Majesty’s Opposition is.

I turn to the tunnel-specific safety rules for passengers and freight. The IGC has made significant progress in reviewing its rules to check that all the safety requirements currently in place continue to be justifiable on safety grounds and to remove those which are not. The IGC will continue to hold this view unless the evidence demonstrates otherwise.

The tunnel authorities and Eurotunnel are working together to address the consequences for the tunnel’s rules of the opening of the European rail market. This includes a programme of work to address the European Rail Agency technical opinion, which has already led to a number of requirements being removed. The UK Government accept the principle that the IGC must justify, by robust risk analysis, any requirements that are additional to the European harmonised technical specifications for interoperability.

The safety concerns that underpin the tunnel’s safety requirements reflect the difficulties of getting firefighters in and other people out of a 54-kilometre undersea tunnel in the event of a fire. My noble friend Lady O’Cathain asked when the work on the TSIs will be completed and whether the TSI requirements will be rescinded. The Safety in Railway Tunnels TSI is expected to be revised in mid-2013. Some specific requirements in the Channel Tunnel rules have been removed—for example, the 30-minute running time for freight locomotives. Other remaining tunnel rules are expected to finish in September 2012.

I turn to economic regulation of the Channel Tunnel. The UK considers that the Channel Tunnel’s regulator’s independence from any railway undertaking is properly preserved as regards the UK. No one in the UK IGC delegation or working at the Office of Rail Regulation in support of the IGC has any responsibility for Eurostar. Within the Department for Transport, policy responsibility for Eurostar is vested in a separate command that has no locus in or responsibility for the IGC.

My noble friend Lady O’Cathain, the noble Lord, Lord Davies, and many other noble Lords talked about border and immigration controls. Rail liberalisation presents a number of border control challenges which the Home Office and the border force are seeking to resolve with colleagues from across government, the police, rail operators and the Governments of other European countries. It is occurring against a background of rapid changes in border control technology, which will help to meet some of those challenges. But these challenges will only become more significant with the increase in international services. That is recognised in respect of HS2.

Lord Berkeley Portrait Lord Berkeley
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Will the noble Lord explain what border controls are planned for HS2? That seems a bit odd as I thought it was within the UK.

Earl Attlee Portrait Earl Attlee
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My Lords, I think the hope is that passengers will get on HS2 on an international journey further up the country, maybe from Birmingham.

The noble Lord, Lord Faulkner, asked about Schengen. The position of the UK outside Schengen means that exit checks also need to be completed for all passengers leaving the zone prior to immigration arrival controls in the UK. The noble Lord, Lord Berkeley, raised the UK’s possible infraction for non-compliance with the first railway package in respect of the Channel Tunnel. I am unable to discuss the infraction procedures with respect to the first railway package and the Channel Tunnel but we consider that the railway usage contract does not breach the requirements of directive 2001/14—the first railway package—for the duration of a framework contract, and complies with Articles 17.5 and 17.5a in that it relates to a uniquely large-scale and long-term investment which is covered by contractual commitments. The noble Lord, Lord Haskel, also asked about the Commission taking further action against member states for non-compliance of the first railway package. The European Commission is currently taking infraction action against those member states that have not correctly implemented the first railway package.

I am grateful for your Lordships’ comments and, where appropriate, I will certainly draw them to the attention of my right honourable friend the Rail Minister, Theresa Villiers.

Civil Aviation Bill

Earl Attlee Excerpts
Wednesday 13th June 2012

(12 years ago)

Lords Chamber
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Moved by
Earl Attlee Portrait Earl Attlee
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That the Bill be read a second time.

Earl Attlee Portrait Earl Attlee
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My Lords, we are an island nation and our access to the rest of the world—and the rest of the world’s access to us—is primarily through air travel. That is why the aviation sector is so important to our economy. In 2010, goods worth £113 billion were moved by air between the UK and non-EU countries. In the same year, UK airports served nearly 400 international destinations. That level of activity is possible because over the past 30 years the aviation industry has changed to meet the needs of the customer. The emergence of low-cost carriers is one example of how the industry has innovated and diversified. There has also been an increase in the number of people travelling by air in this country, from 59 million passengers in 1982 to 211 million in 2010.

While the sector has changed dramatically, the regulatory framework which governs it has not. Much of our aviation regulation originated in the 1980s, and needs to be brought into the 21st century. The Government are committed to bringing vital reform to our aviation regulation. In a moment I will set out this reform in more detail, but let me first make clear the important theme that runs through the Bill: putting the interests of the passenger at the heart of airport regulation. For the first time, the CAA’s primary economic regulation duty will be to users of air transport services—that is, the passengers and owners of cargo.

The Bill introduces reform in four areas: the economic regulation of airports, the legislative framework of the CAA, the Air Travel Organisers’ Licensing scheme, and aviation security. I would like to explain each of these in turn, beginning with the reform to the economic regulation of airports. In the UK, the gas, electricity, water, telecoms and post sectors all have some level of economic regulation. Economic regulation typically operates through an independent regulator capping the prices that companies with substantial market power are able to charge and specifying levels of service quality. Much of the aviation industry in this country is competitive. That is how the Government prefer it to be. Effective competition gives firms the incentives to invest and improve efficiency, choice, and service quality.

However, a small number of airports—currently Heathrow, Gatwick and Stansted—have substantial market power and are not subject to sufficient levels of competition. In order to replicate the effects of a competitive market on these airports, the CAA exercises its powers of economic regulation in the form of price caps and service quality requirements. However, there is compelling evidence that the framework for the economic regulation of airports needs updating. The Competition Commission has concluded that the regime distorts competition between airlines and should be reformed. Advice from an independent panel of experts and responses from three evidence-gathering exercises has further indicated that the current regime is not fit for purpose. I should also add that the previous Government agreed that reform is necessary—a fact that helps explain the considerable degree of cross-party support the Bill has attracted so far.

The most common criticisms of the current regime are that the regulation is disproportionate and difficult to adapt to individual airports, that the CAA is unable to respond effectively to extraordinary events such as volcanic ash or extreme weather, that the regulator is insufficiently accountable for its decisions and its priorities are unclear, and that the regulatory process is burdensome and inefficient. The Bill would remedy these problems.

Where the current legislation gives the CAA four separate and sometimes competing duties, the Bill replaces them with a primary duty to passengers and owners of cargo. Where the CAA is presently constrained by rigid rules that require it to set five-year price caps when regulating dominant airports, the Bill would give the CAA a modern licensing system. Under this new system, licence conditions could be tailored to individual airports to tackle specific challenges at particular times. This licensing system would also enable the CAA to reduce the degree of economic regulation imposed on individual airports if it believed that this would benefit passengers. For example, instead of controlling prices, it could monitor prices while regulating certain aspects of service quality. The new system would also enable the CAA to impose different regulatory time periods. For example, setting longer periods for price controls would provide greater certainty and could stimulate investment.

Currently, it is the responsibility of the Secretary of State to decide which airports should be subject to economic regulation. The Bill proposes that the CAA, as an independent and expert body, should make that decision against clearly defined criteria set out in the legislation. Another criticism of the current regime is the lack of accountability it provides for key regulatory decisions. At present, judicial review is the only way to challenge the CAA’s decisions on the price cap and service quality standards that airports must meet. Under the Bill, the licence conditions imposed will be appealable by the licence holders and materially affected airlines. These appeals will be made to the Competition Commission, thereby removing the need to go straight to judicial review. The decision on whether an airport is dominant will be also be appealable to the Competition Appeal Tribunal. To summarise, the reforms will deliver a new system of regulation that is fairer, more flexible, and more focused than the current regime.

I turn to reforming the legislative framework of the CAA itself. Measures in Part 2 of the Bill will change the way in which the CAA operates, improving transparency and accountability; removing unnecessary government involvement and funding; and cutting red tape. The Government believe that a more transparent system of providing information would be of benefit to the public. At the moment it is very difficult for passengers to compare air services—for example, to establish which airline is most likely to lose luggage, or which airport garners the most complaints from passengers. It is also difficult for consumers to find out environmental information about aviation.

In 2011, PricewaterhouseCoopers looked at the reports of 46 world airlines and found, for example, that only one-third reported on their noise levels. The Bill will create a new duty for the CAA to publish, or arrange for the aviation sector to publish, information to help users compare services. The CAA will also be given a duty to inform the public about the environmental effects of civil aviation in the UK. It is important that these duties are performed proportionately, so the CAA will have to consult on its approach and have regard to the principle that the benefits of taking action should outweigh any adverse effects.

Other measures to modernise the legislative framework of the CAA include giving the CAA new freedoms to appoint its own executive directors. Where at the moment the CAA has recourse only to slow, costly, and often disproportionate criminal sanctions in enforcing regulations, the Bill will enable the Secretary of State to give the CAA powers to enforce offences through civil sanctions. I am pleased to say that Part 2 of the Bill also brings forward a recommendation that was made by this House.

In the course of its licensing duties, the CAA collects medical data on individuals in the air transport industry. In 2007, your Lordships’ Committee on Science and Technology, as part of its inquiry into air travel and health, recommended that anonymised medical data held by the CAA should be made available for ethically approved medical research. Clause 104 meets this recommendation. Of course, we have built in safeguards to help to ensure these data are used appropriately. I urge your Lordships to read the appropriate section carefully.

I will now move on to our proposals to improve the regulation of aviation security. Keeping people safe and secure when they travel is of prime importance. At present, aviation safety is regulated by the CAA, while security regulation is carried out by the DfT. The Bill would move security regulation from the DfT to the expert regulator, the CAA. On both safety and security, the aviation industry would have to deal with only one regulator, not two. The move would have the further advantage of bringing the “user pays” principle to aviation security. The costs of the aviation industry should, as far as possible, be paid for by the people who use it. At the moment, the aviation industry pays for safety regulation, but the public purse pays for security regulation. The position under the Bill would be fairer.

The final measure in the Bill that I will mention, which accounts for just one clause, Clause 94, is the reform to the Air Travel Organisers’ Licensing scheme—ATOL for short. Over the years the ATOL scheme has given peace of mind to millions of holidaymakers who have known that because their holiday is covered by the scheme they will not be left stranded or out of pocket if their travel company becomes insolvent. However, diversification in the holiday market since the scheme was set up—in particular, the changes associated with internet booking—mean that it is no longer clear to some consumers whether their holiday is ATOL-protected or not.

Certain sorts of holiday—for example, those sold by airlines and on an agent for the consumer basis—cannot currently be required to be included in the ATOL scheme because they fall outside the relevant powers in Section 71 of the Civil Aviation Act 1982. So Clause 94 of this Bill would allow us to improve clarity for the consumer, by giving the Secretary of State powers to add more holidays to the ATOL scheme, including holidays sold by airlines and agents for the consumer. This should also mean that businesses selling holidays that include a flight will have a more coherent and consistent regulatory framework in which to operate.

The Civil Aviation Bill has undergone thorough scrutiny—

Lord Clinton-Davis Portrait Lord Clinton-Davis
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The Minister is right to stress the importance of aviation to this country. Does it not follow that the pilots are an extremely important part of that? Why did 91% of the members of the BALPA union consider the Government to be not supporting the industry sufficiently? Is that not a serious point that ought to be taken into account?

Earl Attlee Portrait Earl Attlee
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My Lords, I am sure it is a very serious point. I will be meeting representatives of BALPA shortly, certainly before the Committee stage starts.

The Transport Committee found the Bill to be clearly welcomed by the aviation industry, including airlines, airports and the CAA. It also found that the draft Bill has been,

“subject to detailed review and consultation over a lengthy period”—

and, although it raised some points which have since been picked up in the Commons, it found that the Bill—

“appears to offer a better way to regulate UK airports in the future”.

I look forward to debating the merits of the Bill with your Lordships in this Chamber. I am confident that we will maintain the high level of scrutiny that the Bill deserves and has attracted so far.

I beg to move.

--- Later in debate ---
Earl Attlee Portrait Earl Attlee
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My Lords, we have conducted a full and wide-ranging debate on the merits of the Bill. Many noble Lords have made the case for the continuing importance of our aviation sector. The continuing success of the industry is essential to our economic growth. The reforms in the Bill have been designed to allow competition to flourish and for our aviation industry to innovate and thrive. The Government, the Opposition, the regulator and the wider aviation industry all support the Bill.

I shall now endeavour to respond to some of the points made by noble Lords but they will understand if I have to be selective in what I reply to. I am grateful for the thoughtful and generally helpful response from the noble Lords, Lord Davies of Oldham and Lord Rosser. I am very happy to accept that the previous Administration put a lot of work into the Bill. The noble Lord, Lord Davies, complained that the Government did not accept Front Bench amendments in another place. Of course, our roles are now reversed and I am sure that the same accusation could have been levelled at the noble Lord when he was in government.

The noble Lord, Lord Davies, mentioned climate change. He and the noble Lord, Lord Rosser, will recognise that the Bill is about regulation of the aviation industry. However, I look forward to seeing the noble Lord’s amendment on carbon emissions and how they will work within the confines of the Chicago Convention. The noble Lord, Lord Rosser, offered gentle criticism of the aviation industry. He will be aware that the new generation of aircraft is much quieter and much more efficient.

My noble friend Lord Bradshaw and the noble Lord, Lord Soley, talked about the problem of stacking. The Civil Aviation Authority’s future airspace strategy deals with this problem and one or two others. The Director of Airspace Policy at the CAA recently made a presentation to your Lordships on the possibilities of the future airspace strategy. My noble friend Lord Bradshaw talked about the possibilities of other UK airports and, for his pains, he got a response from the noble Lord, Lord Soley, about hub connectivity.

The noble Lord, Lord Davies of Oldham, and many other noble Lords, raised the issue of capacity at Heathrow. They recognise, of course, that the Bill deals with regulation but I am happy to respond. The Government recognise the need to maintain the UK’s excellent connectivity now, and in the longer term. This is why we will issue a call for evidence later this summer alongside our consultation on the draft aviation policy framework to explore the options to achieve this. We remain committed to adopting the aviation policy framework by March 2013.

The coalition Government’s position regarding a third runway, mixed mode, and the planning cap on air traffic movements at Heathrow has not changed. I can assure noble Lords that we will follow a proper process in developing a long-term aviation policy which is in the UK’s best interests.

Lord Clinton-Davis Portrait Lord Clinton-Davis
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Is it still the noble Earl’s view that the Government are ruling out a third runway at Heathrow?

Earl Attlee Portrait Earl Attlee
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My Lords, I repeat: I can assure the noble Lords that we will follow a proper process in developing a long-term aviation policy which is in the UK’s best interests.

Lord Clinton-Davis Portrait Lord Clinton-Davis
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Time without number it is reiterated that a third runway is to be ruled out and several other government Ministers have said the same. What is the present policy?

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Earl Attlee Portrait Earl Attlee
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The noble Lord’s comments are accurate but the words I have just repeated are very carefully thought out. I must move on.

These measures are consistent with the Government’s commitment to runway alternation at Heathrow and the trial—that is, the operational freedoms—will not increase the number of flights at the airport, which remains capped at current levels. I can assure my noble friend Lord Patten that the Bill does not interfere with the aviation policy framework. The two issues are separate; future developments will not be inhibited.

I welcome the comments on the environment—particularly from the noble Lord, Lord Davies of Oldham, and many other noble Lords. The issue was also debated at some length in another place. I have listened very carefully to the points raised today. I agree that further consideration should be given to the clarity in the Bill regarding the role of the CAA in allowing licence holders to recover the costs of taking reasonable measures to mitigate the adverse environmental effects of airports in carrying out its functions. Therefore, I look forward to further discussions in Committee. It will, however, be important to get the correct balance between conflicting interests. This will be challenging and we must get it right.

Many noble Lords raised the issue of the NAO auditing the CAA. I am still not persuaded that there are convincing reasons to believe that NAO scrutiny would deliver a better result than the current and planned mechanisms by which the CAA’s functions are audited and scrutinised. In his review of the CAA, Sir Joseph Pilling considered this and concurred that he saw no need for the NAO to be involved directly. Ministers in the previous Government subsequently accepted this recommendation. I have yet to see convincing reasons why they were wrong and nothing has happened since to suggest that this advice needs to be reviewed.

I am not convinced that NAO scrutiny would be more effective than the current system which includes the following elements: the Secretary of State appoints the CAA’s auditors; the Secretary of State places the CAA’s accounts before Parliament; the Secretary of State approves the CAA’s borrowing and sets its required rate of return on capital; the Secretary of State appoints the CAA’s chair and non-executive board members; the CAA’s audit committee is made up of non-executive members who are appointed by the Secretary of State; and the CAA consults on its fees and will be required to do so under the changes set out in Clause 100. In addition, over the period 2001 to 2011, the CAA reduced its operating costs in real terms by 20%. I note that some noble Lords suggested additional functions or capability that the CAA should acquire.

Following discussion in another place on 25 April in the Bill Committee, the Minister, my right honourable friend Theresa Villiers, announced a new non-legislative measure to increase the transparency of the CAA’s moves towards greater efficiency. On an annual basis, the Department for Transport issues a report direction and an accounts direction to the CAA specifying the matters that should be addressed in the authority’s annual report and accounts. From 2013 onwards, the Secretary of State will strengthen the scrutiny of the CAA by including in the annual directions a requirement to include an efficiency statement in the annual report.

I am grateful for the contribution from my noble friend Lord Trefgarne about general aviation. The primary duty will be capable of capturing general aviation interests where they are aligned with the interests of users of air transport services. Broadly speaking, users of transport services will be passengers and freight owners using air services to and from the UK—including future users. In so far as owners of small aircraft fall within this, they will be covered. It can also be noted that only around 0.1% of flights at regulated airports comprise general aviation.

My noble friend Lord Jenkin of Roding raised concern that an airline right of appeal touching on an airport’s financial arrangements would seriously inhibit the airport’s ability to raise finances. The noble Lord, Lord Soley, and my noble friend Lord Bradshaw raised similar concerns. The Government remain of the opinion that there are good reasons to include financial resilience licence conditions, with appropriate derogations where these cut across existing financing. We also remain of the opinion that the broad rights of appeal in the Bill provide an effective means of improving the accountability of key regulatory decisions and enable the interest of both airport operators and materially affected airlines to be taken into account in the licence process.

We believe that it is correct that the right of appeal extends to financial resilience licence conditions. Any dispute as to whether a derogation would cause a breach of the existing financial arrangements is most likely to arise from questions of law over the true construction of a loan agreement and/or licence condition. These could ultimately be resolved through judicial review and, in the mean time, an airport operator could seek an injunction to preserve the status quo. Markets should therefore be reassured that the risk of existing creditor protection in an airport operator’s funding structure being unintentionally removed, triggering an event of default, is extremely unlikely. Investors are experienced in managing regulatory uncertainty in their normal course of lending to the regulated sector and we would expect them to manage this situation as well. However, I know how strongly BAA feels about the issue and I will be meeting with it shortly.

The noble Lord, Lord Rosser, raised issues about staff in the event of the transfer of security functions from the Department for Transport to the CAA. It is important to ensure that the CAA has the skills and resources to undertake its new security functions. The Government are working to a plan that would aim for the CAA to take on the aviation security regulation function from the spring of 2014. The Government hope that existing staff will want to continue working in the security environment, but if any of them decide to move elsewhere, there will be enough time to manage this.

The noble Lord, Lord Clinton-Davis, raised the issue of aviation safety standards. The UK is a signatory to the Chicago convention and is required by the ICAO to have in place a state safety programme to achieve an acceptable level of safety in civil aviation. The Civil Aviation Bill currently before Parliament does not deal with safety issues as there is already sufficient European and international legislation in place which addresses them.

The noble Countess, Lady Mar, raised the issue of organophosphates. This is a separate matter and one of research rather than legislation. I am pleased to be able to tell the House that the last piece of research that your Lordships asked the Department for Transport to commission, under successive Governments, into allegations regarding airplane cabin air quality, has now been completed and published. All the published research studies have now been formally referred to the Committee on Toxicity, the independent adviser to the Government on matters concerning the toxicity of chemicals, for it to consider.

Countess of Mar Portrait The Countess of Mar
- Hansard - - - Excerpts

My Lords, I thank the noble Earl for his comments. Does he agree that there is a serious problem in that the Civil Aviation Authority is responsible for people in an aeroplane both when it is on the ground and when it is in flight, but it does not impose health and safety regulations, as would be the case with the Health and Safety Executive? It looks after people on an airport site who are not in aeroplanes, but does not consider the COSHH regulations. Numerous Questions for Written Answer have been tabled on this issue, but no one takes responsibility for the passengers, pilots or aircrew.

Earl Attlee Portrait Earl Attlee
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My Lords, the noble Countess will recognise that these are complex matters. I will write to her on all the points she raised.

The noble Lord, Lord Soley, asked if the Bill will cover military airports and whether they could be exempted under Clause 77. In certain circumstances, military airports can be exempted from economic regulation under Chapter 1 and Clause 77.

My noble friend Lord Bradshaw was concerned about the market power test set out in Clause 6. His specific concern was that unless an airport operator has market power, it should not be regulated. I would like to reassure my noble friend that, under the Bill, where an airport does not and is unlikely to acquire substantial market power, it will not be made subject to economic regulation. It is a specific requirement of the market power test in Clause 6.

The noble Lord, Lord Rogan, talked about the aviation needs of Northern Ireland. The Government and the Civil Aviation Authority have no role in the slot allocation process. EC regulations established a mechanism for the allocation of slots at congested airports. This has been transposed into UK law under the Airports Slot Allocation Regulations 2006, which came into effect on 1 January 2007. Heathrow, Gatwick, Stansted, Manchester and London City airports are all designated by the Secretary of State for Transport as co-ordinated airports with their slot allocations managed by Airport Coordination Limited, an independent company which has powers under the UK regulations to monitor the conformity of air carriers’ operations with the slots allocated to them, and to take enforcement action against those airlines that do not operate according to the regulations, in particular by introducing sanctions for slot misuse. The ring-fencing of slots at Heathrow to protect regional services, other than where a public service obligation has been implemented, would be incompatible with EU law. The UK has highlighted the issue of regional connectivity with the European Commission in the context of the current reform of the EU slot regulations and is exploring the scope for including measures to help secure the ongoing provision of air services between UK regions and congested London airports. Beginning this summer, Commission working groups will examine the slot proposals, and I commend the work of the noble Lord, Lord Empey, who has been extremely active and effective in Brussels.

The noble Lords, Lord Davies of Oldham and Lord Davies of Stamford, commented on the UK Border Force. It is not covered by the Civil Aviation Bill and is accountable to Ministers and Parliament as a Home Office agency. Queues at airports are caused by many factors, including the border force receiving incorrect flight manifests and early or late airplane arrivals, resulting in bunching. The Minister for Immigration and Citizenship is reviewing what additional data may be published by the Home Office and shared with port operators. Meanwhile, the UK Border Force has responded to recent problems with queues in a number of ways. It is tackling short-term peaks with a pool of trained staff, and working with airports and airlines to ensure that they provide more accurate passenger manifests and flight schedules so that the force can flexibly deploy staff at the right times and in the right places. It is creating a new central control room for the UK Border Force at Heathrow that will use mobile teams for rapid deployment, and it will implement new rostering and shift patterns. It is also working with Gatwick and Heathrow airports to improve passenger flows using more specific measures such as e-gates and other biometric checks.

The noble Lord, Lord Davies, asked why there is no obligation on the CAA to require airports to develop passenger welfare plans. The indicative licence prepared by the CAA included, at the request of the Department for Transport, an example condition that would strengthen an airport’s resilience where appropriate. The proposals contained in Condition 7 require the licence holder to operate the airport efficiently and to use its “best endeavours” to minimise any detriment to passengers arising from disruption. It would also require the airport to draw up, consult on and gain the CAA’s approval for an annual resilience plan setting out how it will secure compliance with its obligations under the condition. The licence holder would be obliged to comply with the commitments it has made in its resilience plan.

The noble Lord, Lord Hunt of Chesterton, mentioned the issue of the difference in the quality of the air between first and economy class. The air is the same throughout an aircraft. First class seats and economy class seats are usually separated by a curtain, which is not an airtight medium.

Lord Hunt of Chesterton Portrait Lord Hunt of Chesterton
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I was talking about the volume of air. We know that there is air, but the question is how much of it is circulating. That is a very clear distinction.

Earl Attlee Portrait Earl Attlee
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My Lords, if I have anything further to add, I will write to the noble Lord.

My noble friend Lord Jenkin of Roding raised the issue of consolidation. We should strive to produce legislation that is comprehensible to those who have to operate it and to those who are affected by it, and the consolidation of statute law can make a valuable contribution to this. Consolidation can take different forms. On the one hand, there can be what we call “formal consolidation”, which reproduces a law on a particular topic without any changes. On the other hand, a Bill may reproduce existing law with amendments. In recent years, fewer formal consolidation measures have been prepared than previously. One reason for this has been the change to the way that Parliament amends legislation. Amendments are now routinely made by textual amendment; that is, by inserting, removing or replacing text in the original statute. The need to consolidate simply to take account of textual changes has therefore largely disappeared. The approach taken in the Civil Aviation Bill is sometimes to make brand new provisions, as in Part 1, and sometimes to textually amend existing legislation, as in Part 2. When drafting the Bill, the changes being made did not appear to call for the rewriting of the law relating to civil aviation or aviation security. The specific textual amendments to other Acts made by the Bill show more clearly the changes that are being made than would a provision which replaced the whole of the legislation being amended, with the changes buried somewhere in the middle.

I have endeavoured to respond to many of the valuable points made by noble Lords, but time does not allow me to respond to all the points that have been made, no matter how good they are. I will read Hansard carefully and write to those noble Lords who have asked me questions that I have not been able to answer. I will also be delighted to have meetings with noble Lords outside the Chamber to look at the detail of these matters. This is only the first opportunity to formally discuss the Civil Aviation Bill in your Lordships’ House, and I look forward to debating it with noble Lords in Committee.

Bill read a second time.

Airports: Heathrow

Earl Attlee Excerpts
Monday 28th May 2012

(12 years, 1 month ago)

Lords Chamber
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Baroness Kramer Portrait Baroness Kramer
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To ask Her Majesty’s Government what assessment they have made of night flights at Heathrow.

Earl Attlee Portrait Earl Attlee
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My Lords, the Government are aware that night noise continues to be a concern for residents around Heathrow. We have extended the current night-time flying regime at Heathrow for two years until October 2014 and will begin a review later this year on its replacement. In considering a new regime, it is important that we take care to strike a balance between noise disturbance and the economic benefits of night flights.

Baroness Kramer Portrait Baroness Kramer
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My Lords, local residents are woken from 4 am onwards not because of capacity issues at Heathrow but because of limits on departure schedules at other airports. If the Government will not commit to eliminating night flights, will they at least undertake to negotiate with the relevant countries for a timetable that is gentler for residents under the flight path in this country? Will they also negotiate with the airlines to get them to commit to put the latest, quietest aircraft on these routes? I understand that none has yet committed to doing so for early landings.

Earl Attlee Portrait Earl Attlee
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My Lords, my noble friend makes a number of points. She referred to aircraft coming from distant countries. It is important to remember that if we insist on a later arrival time in the UK, a plane may have to leave the Far East later at night and that may cause a problem there. My noble friend talked about quieter and noisier aircraft. A quota system takes into account the noisiest aircraft, which cannot fly until later in the day.

Lord Faulkner of Worcester Portrait Lord Faulkner of Worcester
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My Lords, can the Minister give an assurance that, when the Government conduct their assessment into whether to allow more night flights, they will take into account the economic disbenefits, as well as the effects of sleep deprivation and other social effects of night flights, set against the economic benefits that may come from having more planes arriving earlier?

Earl Attlee Portrait Earl Attlee
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My Lords, I assure the noble Lord that we will do exactly that.

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock
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My Lords, is the Minister aware that more and more flights from Scotland are being cancelled by airlines so that they can free up slots for other destinations? Is it not about time that the Government stopped dithering and made a decision to go ahead with a new runway at Heathrow?

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Earl Attlee Portrait Earl Attlee
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My Lords, the noble Lord will know that the slot allocation at Heathrow Airport is not a matter for the Government.

Baroness McIntosh of Hudnall Portrait Baroness McIntosh of Hudnall
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My Lords, does the noble Earl agree that the noise problem is not confined to Heathrow Airport? There are considerable problems with noise over Stansted Airport, for example, and I declare an interest as a supporter of the Stop Stansted Expansion campaign. Can he say whether the Civil Aviation Bill, which is shortly to be introduced in this House, will take any account of this issue and whether it will contain any provisions for strengthening the regime that limits night flights?

Earl Attlee Portrait Earl Attlee
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My Lords, as currently drafted, the Bill does not say anything about night flights, although the noble Baroness might tempt me with an amendment. It is important to understand that the problem of Heathrow is much greater than that of the other two London airports. Some 228,000 people are affected at Heathrow, whereas at Gatwick and Stansted the figure is only between 1,000 and 2,000, so the problem at Heathrow is much more serious. However, all three London airports have noise controls imposed by central government.

Lord West of Spithead Portrait Lord West of Spithead
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My Lords, if there were a third runway at Heathrow, would that make any difference to the pressure for more night flights?

Earl Attlee Portrait Earl Attlee
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My Lords, I doubt it. The issue about night flights is that flights coming in from the Far East make connections at Heathrow.

Lord Bradshaw Portrait Lord Bradshaw
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The work that I have done on the Civil Aviation Bill has shown me that there is a lot of spare capacity at Stansted, Luton, Gatwick and Birmingham, an airport which I am just about to visit. The release of that capacity is dependent on improved surface connections to all four airports. I urge the Minister to look into that before we try to put everything into Heathrow and so get some of the traffic spread out because it is not all hub traffic.

Earl Attlee Portrait Earl Attlee
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My noble friend makes valid points.

Lord Davies of Coity Portrait Lord Davies of Coity
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My Lords, my noble friend Lord Foulkes described the circumstances arising out of his question, such as the slotting of aircraft. The Minister replied to the issue of the slots but he never replied to the point about the dithering over the decision, for which the Government are responsible, about the third runway at Heathrow.

Earl Attlee Portrait Earl Attlee
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My Lords, we are not dithering about a third runway at Heathrow. Coalition policy is that there will not be a third runway at Heathrow.

Lord Davies of Oldham Portrait Lord Davies of Oldham
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My Lords, the Minister may or may not be dithering about Heathrow, but the Government have certainly dithered on the aviation Bill when environmental issues have cropped up in relation to airports. Will he take note of the fact that we will use the opportunities provided by the aviation Bill to examine thoroughly the Government’s position on these important environmental matters? I am very pleased today to see how many people, right across the House, are concerned.

Earl Attlee Portrait Earl Attlee
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My Lords, I can assure the House that I shall listen very carefully to noble Lords’ input on the aviation Bill as it passes through the House.

Lord Swinfen Portrait Lord Swinfen
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My Lords, what is being done to produce quieter aircraft?

Earl Attlee Portrait Earl Attlee
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Could my noble friend repeat the question?

None Portrait Noble Lords
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Oh!

Lord Swinfen Portrait Lord Swinfen
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Certainly. I asked my noble friend what is being done to produce quieter aircraft.

Earl Attlee Portrait Earl Attlee
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My Lords, there is a great incentive to produce quieter aircraft because of the quota system at Heathrow. I understand that the next generation of aircraft will be 50% quieter.

Aviation Policy

Earl Attlee Excerpts
Monday 14th May 2012

(12 years, 1 month ago)

Lords Chamber
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Lord Spicer Portrait Lord Spicer
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To ask Her Majesty’s Government when they expect to complete their consultation on aviation policy and to publish their conclusions.

Earl Attlee Portrait Earl Attlee
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My Lords, the Government will publish a consultation on the draft aviation policy framework and a call for evidence on options for maintaining the UK’s hub connectivity later this summer. The Government aim to adopt the final aviation policy framework next spring.

Lord Spicer Portrait Lord Spicer
- Hansard - - - Excerpts

My noble friend plays his usual straight bat in his usual charming way. Obviously, consultation is important, but surely the Government accept that Heathrow Airport is now full up and that there is therefore a desperate need for the construction as soon as possible of a third runway.

Earl Attlee Portrait Earl Attlee
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My noble friend is right: consultation is important, as is listening. I have listened to what noble Lords have said in the Chamber and outside, as have my right honourable friends in another place. Government policy is that there will be no third runway at Heathrow. The Government will of course follow the proper process in relation to the call for evidence on hub connectivity. However, it is unlikely that we will discover that we have not maxed out on what Heathrow’s affected population can tolerate.

Lord Soley Portrait Lord Soley
- Hansard - - - Excerpts

The Minister is very good at listening, but I point out that we would like some action. The Government keep saying that they want growth. Aviation expansion related to Europe and the global economy is vital. The third runway at Heathrow would cost nothing to the public and would add about £8 billion to the GDP of this country. Why on earth do they not just get on with it and create employment and growth at the same time?

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Earl Attlee Portrait Earl Attlee
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My Lords, because we have to get the policy right. Successive Governments have struggled to develop an enduring policy that will outlast changes of government. We have to get it right and we are going to do it properly, but we will announce our aviation policy framework next spring.

Lord Bradshaw Portrait Lord Bradshaw
- Hansard - - - Excerpts

Does the Minister agree that there is a lot of spare capacity at Gatwick, Stansted and Birmingham, which is soon to have a runway extension, and that if these resources were used intelligently and properly, we would have sufficient airport capacity? We need to improve surface access to those airports.

Earl Attlee Portrait Earl Attlee
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My noble friend makes a very good point. That is exactly why we have called for evidence on hub connectivity.

Lord Clinton-Davis Portrait Lord Clinton-Davis
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Are not the Government suffering from infinite blindness? We have an effective airport at Heathrow, do we not? Subject to some improvement of access by road and rail, would that not be a far better option than anything else?

Earl Attlee Portrait Earl Attlee
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My Lords, we have an effective airport at Heathrow. The difficulty, of course, is that it is running at 98% capacity, so we need to make it better but not bigger.

Lord Tugendhat Portrait Lord Tugendhat
- Hansard - - - Excerpts

Does my noble friend not agree that Heathrow and Gatwick are two great national assets? The expansion of both airports would do wonders for the British economy. It would be very beneficial, in terms of both the work that would be done in the short term and the expansion of capacity. If the Government refuse to allow a third runway at Heathrow, they will be imposing a brake on the growth of the British economy.

Earl Attlee Portrait Earl Attlee
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I am sure that the Government will take my noble friend’s point into consideration.

Baroness McIntosh of Hudnall Portrait Baroness McIntosh of Hudnall
- Hansard - - - Excerpts

My Lords, will the Minister agree, as he has generously in the past, that one of the most difficult things for communities that are likely to be affected by airport expansion is the length of time over which these discussions have gone on? Specifically, in Stansted—I declare an interest as a supporter of the “Stop Stansted Expansion” campaign—certain areas have started to regenerate since BAA started to release properties back on to the market. If there is another period of uncertainty because the Government are not necessarily going to stick to their intention not to build a second runway at Stansted, that regeneration will begin to decline again.

Earl Attlee Portrait Earl Attlee
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The noble Baroness makes good points. I would just reiterate that we will announce our conclusions to the aviation policy framework next year.

Lord Broers Portrait Lord Broers
- Hansard - - - Excerpts

My Lords, why is aviation policy being considered in isolation from other forms of transport? Why are the Government not working on an integrated transport policy?

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Earl Attlee Portrait Earl Attlee
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My Lords, the Government have recently set up a Cabinet sub-committee to look at transport infrastructure.

Lord Trefgarne Portrait Lord Trefgarne
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My Lords, are the Government prepared to reconsider the possibility of a second runway at Gatwick?

Earl Attlee Portrait Earl Attlee
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My Lords, no.

Lord Brooke of Alverthorpe Portrait Lord Brooke of Alverthorpe
- Hansard - - - Excerpts

My Lords, can the noble Lord say how many international flights have migrated from the hub at Heathrow to Schiphol, Charles de Gaulle and Frankfurt since the coalition came to power?

Earl Attlee Portrait Earl Attlee
- Hansard - -

My Lords, that is a rather detailed question and I do not know whether I will be able to get the answer even by writing, but I will try. I should emphasise that Heathrow is still well connected to the rest of the world, especially China, if you take into consideration direct flights to Hong Kong, which is connected to 45 other Chinese cities.

Lord Teverson Portrait Lord Teverson
- Hansard - - - Excerpts

My Lords, will my noble friend the Minister reassure me that the British Government will resist efforts by China, the United States and other nations outside Europe to opt out of the EU emissions system, which is there to control carbon emissions for the whole aviation industry in a non-discriminatory manner?

Earl Attlee Portrait Earl Attlee
- Hansard - -

My Lords, my noble friend asks a good question, although it is slightly wide of the Question on the Order Paper. We support the ETS scheme, but my noble friend will understand that there are difficulties with it as well.

Lord Hunt of Kings Heath Portrait Lord Hunt of Kings Heath
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But, my Lords, on the question of an integrated transport policy and given that the Minister mentioned Birmingham Airport, does he not, like me, regret the absence of an HS2 Bill in the Queen’s Speech? Does that indicate that the Government are in fact having second thoughts on that?

None Portrait A noble Lord
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I hope so.

Earl Attlee Portrait Earl Attlee
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My Lords, my noble friend behind me said, “I hope so”. I thought, “I hope not”. My understanding is that we did not intend to publish a Bill at this point. There is still much work to be done on planning the route, because we need to say exactly what powers we need, so I thought that it was a bit premature in any case.

Baroness Trumpington Portrait Baroness Trumpington
- Hansard - - - Excerpts

My Lords, why is Manston never considered instead of a third runway? You have a ready-made runway at Manston, which is easy to get to from Dover. It has a lot of advantages and I do not understand why it could not be used.

Earl Attlee Portrait Earl Attlee
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My noble friend makes a good point. Manston’s runway is very long indeed, but it is also a long way from London and does not meet many of the requirements for a hub airport.

Roads: Private Investment

Earl Attlee Excerpts
Wednesday 25th April 2012

(12 years, 2 months ago)

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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To ask Her Majesty’s Government what lessons learned from the privatisation of British Rail they will apply to any plans for increased private investment in the United Kingdom’s motorway and trunk road network.

Earl Attlee Portrait Earl Attlee
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My Lords, we are considering a number of options for the future ownership and financing of the strategic road network, looking at a greater role for private funding to provide more investment. This feasibility study is considering a wide range of possibilities, and it will be taking account of the experiences of water, electricity, telecoms and gas as well as rail and other transport sectors.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
- Hansard - - - Excerpts

That is a rather disappointing response from the noble Earl. I was hoping for “We’ve looked at it, it’s a stupid idea, and we’re not going to do it”. What words of comfort does the noble Earl have for the motorist, the small business and the taxpayer that they are not going to have additional costs to bear if proposals to introduce further private capital to our road system come to fruition?

Earl Attlee Portrait Earl Attlee
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My Lords, the first comfort that I will give is that the feasibility study will consider the role that tolling can play, but it will not consider tolling existing capacity or road pricing. The purpose of the feasibility study is to look at how we can better run the strategic road network into the future so that investors can make long-term decisions rather than the short cycles that we are experiencing at the moment.

Lord Mawhinney Portrait Lord Mawhinney
- Hansard - - - Excerpts

My Lords, will my noble friend learn two lessons from the privately designed, built, financed and operated stretch of the A1 between Alconbury and Yaxley? The first is that without that privately funded scheme—which I declare to the House I authorised—motorists on the A1 would still be bogged down in horrendous traffic jams with very little likelihood that that road would have been financed directly from the public purse. The second lesson that I hope he will learn is that when cost negotiations are taking place with the private sector they should be done with maximum vigour on behalf of the taxpayer.

Earl Attlee Portrait Earl Attlee
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My Lords, I regularly used to use the bit of road that my noble friend refers to. Particularly impressive was the rate at which the construction project went ahead. It had all the signs of an efficient process.

Baroness Scott of Needham Market Portrait Baroness Scott of Needham Market
- Hansard - - - Excerpts

My Lords, given that the objective of government is to encourage the investment of private finance in the transport sector, do the alternatives include the slightly less risky idea of creating a fund into which private investors can put money to invest in a portfolio of transport projects both new and existing?

Earl Attlee Portrait Earl Attlee
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My Lords, I am not quite sure about the exact proposal that my noble friend puts forward, but we are looking at all options and I will be grateful for any input from noble Lords into possible models.

Lord Davies of Oldham Portrait Lord Davies of Oldham
- Hansard - - - Excerpts

My Lords, it may well be the case that the noble Lord, Lord Mawhinney, authorised an effective improvement to the roads, but I am concerned that the Minister effectively told the House that pretty well everything could be covered by this initiative. For example, would it be possible that there would be designated lanes for those who paid a road toll, so that we had the equivalent of first-class passengers on rail operating on our roads? Or would it mean that a mere resurfacing of the road, or just the addition of a junction, would effectively mean that the road had been upgraded and therefore could be subject to one of these initiatives?

Earl Attlee Portrait Earl Attlee
- Hansard - -

My Lords, the noble Lord has made just the same points as I made to my officials. The key question is: is it additional capacity or is it merely an enhancement? If it is additional capacity, we would consider tolling it, but if it was just an enhancement, perhaps that would not justify tolling. The noble Lord puts his finger on an extremely important point.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
- Hansard - - - Excerpts

Can the Minister tell me on this Anzac day whether he knows that Sydney Harbour Bridge is a toll road? It has paid for itself probably thousands of times over, but as far as I know there is still a small toll payable. Does he not think that it is a great advantage for people to have a road that otherwise they would not have, but that the cost should not be so high that it creates a major problem, particularly for local people in meeting the toll cost?

Earl Attlee Portrait Earl Attlee
- Hansard - -

I am sure that my noble friend makes a very sensible point.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
- Hansard - - - Excerpts

My Lords, the Sydney Harbour Bridge may well be a successful toll bridge. The Severn Bridge is a successful bridge but it is causing a major impediment to investment in Wales. Given the other problems we face, could that be looked at afresh?

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Earl Attlee Portrait Earl Attlee
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My Lords, as the Question is linked to railways, I can point out that we are electrifying to Wales.

Transport: Automatic Number Plate Recognition

Earl Attlee Excerpts
Tuesday 24th April 2012

(12 years, 2 months ago)

Lords Chamber
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Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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To ask Her Majesty’s Government how they plan to use automatic number plate recognition (ANPR) systems to reduce the number of uninsured drivers and the use of unregistered vehicles.

Earl Attlee Portrait Earl Attlee
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My Lords, the police use automatic number plate recognition to spot vehicles that are being used without insurance or with no registered keeper. Under the continuous insurance enforcement scheme, the DVLA has powers to issue fixed-penalty notices, clamp a vehicle or prosecute offenders who keep a vehicle with no insurance. Contractors for DVLA are able to wheel-clamp uninsured vehicles, and have access to ANPR. The DVLA also has its own ANPR equipment to detect unlicensed vehicles.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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Does the Minister agree that the estimated loss to ordinary insured drivers is £500 million a year in higher premiums? Has he seen the reports about forecourts saying that they will not let you buy petrol if you are unregistered? Has there been any increase in the effectiveness of enforcement where people are uninsured or unregistered?

Earl Attlee Portrait Earl Attlee
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My Lords, the cost of uninsured drivers is considerable. Uninsured drivers are also vulnerable to legal difficulties. The situation is highly undesirable, which is why we are taking steps to reduce the level of uninsured driving. The idea of using ANPR on petrol forecourts is innovative and being considered, but further work is needed to establish how it will work in practice alongside existing enforcement measures.

Lord Bradshaw Portrait Lord Bradshaw
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Will my noble friend take this fact away? ANPR is cutting-edge technology. It is very capable and can detect uninsured or stolen vehicles, people who are wanted by the police, and myriad other things. However, the legal system, which is in the hands of the Home Office, is not keeping pace. I have been on ANPR checks that have had to be stood down after about an hour because all the available space in a police station to process the prisoners has been quite overwhelmed.

Earl Attlee Portrait Earl Attlee
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My Lords, my noble friend is right about the advantages of ANPR technology. It detects a considerable number of unlicensed vehicles. I was out with the police last week and we caught an uninsured driver. It is not the only technique available. Under continuous insurance enforcement, the DVLA is able to issue fixed-penalty notices to anyone who operates a vehicle that is not insured and not declared to be off the road. That will also be a very effective deterrent.

Lord Brooke of Alverthorpe Portrait Lord Brooke of Alverthorpe
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My Lords, if we have so many facilities for tracking these people and bringing them to charge, why is the system not operating? What will the Government do to use the facilities properly? Will they not consider employing people who are unemployed to chase these people, which will make the system cost-effective at the same time?

Earl Attlee Portrait Earl Attlee
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My Lords, I said that I was out with the police very recently using this technology and we detected an uninsured driver. However, we need to be careful that when we interfere with motorists, and possibly seize or clamp their vehicles, the people doing that work are properly trained and qualified to do so.

Lord Mackenzie of Framwellgate Portrait Lord Mackenzie of Framwellgate
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Will the Minister comment on the number of occasions when ANPR has been used in the detection of serious terrorist offences and serious organised crime, where it is extremely valuable?

Earl Attlee Portrait Earl Attlee
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My Lords, the noble Lord is absolutely right about the use of ANPR. I cannot give examples because I am not briefed on them, but when I went out with the police, I was in an unmarked police car and the police were interested in all types of crime, not just vehicle crime.

Lord Geddes Portrait Lord Geddes
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My Lords, in my ignorance, and perhaps for the benefit of the House, will my noble friend explain whether ANPR is a mobile device or is fixed?

Earl Attlee Portrait Earl Attlee
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My Lords, ANPR technology can be fixed or mobile. Both technologies are used where appropriate. However, if you want to use ANPR technology for a prosecution, the equipment has to be Home Office approved, and there are some issues there.

Lord Davies of Oldham Portrait Lord Davies of Oldham
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We note that the Minister has been closely involved with the police and has been helping them with any inquiries which they make, and I am very glad to see him back in his place today. Will he address his mind to the fact that the cost of motor insurance, which, after all, encourages those of a less respectable bent to try to avoid it, went up by 14 per cent last year? For young people getting their first car, if it is of a fairly clapped-out variety, insurance could be twice the cost of their vehicle. What are the Government going to do about that?

Earl Attlee Portrait Earl Attlee
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The noble Lord is absolutely and precisely right, as usual. My right honourable friend the Secretary of State is shortly to chair a working group looking at the cost of motor insurance for young people.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
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Will the noble Earl tell the House that in a case where death or injury is caused by an uninsured driver, the agreement made between the Ministry of Transport and the Motor Insurers’ Bureau in or about 1930 still remains valid and effective?

Earl Attlee Portrait Earl Attlee
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My Lords, unfortunately I am not aware of what the noble Lord is talking about, but I will be delighted to write to him.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
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It was, in fact, an agreement—