Flybe

Lord Kilclooney Excerpts

Thursday 5th March 2020 Lords Chamber

[Baroness Vere of Norbiton]

I thank both Front-Benchers for their contributions; a number of very important issues were raised, some of which I can agree with and some of which I probably cannot. I think that all noble Lords will agree that the loss of Flybe is a significant hit to regional connectivity, and we must work with the regions to make sure that people are able to get to where they need to go. I am a little concerned that there seems to be much focus on regional connectivity and just air travel, but there are several ways of travelling from the regions. The noble Baroness, Lady Hayter, mentioned the south-west. The south-west does have trains and does have coaches; there are other ways to travel. The Government are undertaking a review of regional connectivity which will focus on aviation but will cover all modes of transport to understand exactly how the regions can interconnect.

There are two things—this was raised also by the noble Baroness, Lady Randerson—about connectivity. It is not enough to get connectivity between airports; we must also make sure that there is good access to the airports and the train stations. Of course, this is all top of mind within my department.

The noble Baroness, Lady Hayter, mentioned the passengers who have booked flights, and whether they will be able to get their money back. This is a private sector company, and it concerns all of us that some people may not have adequate protection. This will once again highlight, as other failures have in the past, the importance of having insurance. Some passengers will have ATOL cover. Others who have paid by credit card may be able to get their money back under Section 75 of the Consumer Credit Act. Some passengers may be able to claim a refund by applying for chargeback, if they paid by debit card. Passengers can seek additional information and advice from Citizens Advice or Advice Direct Scotland.

The noble Baroness, Lady Hayter, mentioned CAA resources; the CAA outlines the adequacy of its resources every year in its annual report. It is working within its current resource envelope in order to staff the failure of Flybe, and we are not aware that it has any concerns.

The Government are, of course, working very closely with all of the airports. A number of airports were heavily reliant on Flybe flights. We are working very closely; my colleague the Aviation Minister has already called the airlines and the airports this morning, and that engagement will continue. Later today, she will be calling key figures, either metro mayors or local authorities, where appropriate.

In terms of protections for employees, both of Flybe and of the different airports, the DWP does stand ready to offer support. It has been in touch with both BALPA and Unite already today and is working with them.

One of the points from the noble Baroness, Lady Hayter, made me feel that she is very much in favour of aviation. However, Labour wants to include a frequent flyer levy, which would have a significant damaging impact on aviation. Should Labour wish to retain its goal of net zero by 2030, I think it was the GMB that said that that would mean one flight every five years for people. So I am not entirely sure that Labour can be the great champion of aviation; should it ever come to power it would indeed decimate it.

The noble Baroness, Lady Randerson, mentioned PSOs. Those will be really important going forward and will be one of the key levers in the way we will be able to improve connectivity. We are looking at all options for expanding the scope of PSO policy. As we leave the European Union, the different rules we will be able to put in place will certainly be hugely beneficial to various places. On her specific question on transport from the Isle of Man to Liverpool, I will need to write forthwith.

[Lord Kilclooney (CB)]

My Lords—

[Lord Empey (UUP)]

My Lords—

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[Lord Kilclooney]

My Lords, the Minister referred to alternative bus and rail routes. As has already been mentioned, 90% of the flights from Belfast City Airport are by Flybe. Northern Ireland has no bridge or canal link with Britain. Will the Minister bring to the Chancellor of the Exchequer’s attention before the Budget the need to abandon air passenger duty on flights from Northern Ireland?

[Baroness Vere of Norbiton]

The noble Lord raises an interesting point. Air passenger duty is under review by Her Majesty’s Treasury, as indeed are all taxes. The Conservative manifesto set out our commitment to consider the devolution of short-haul APD in Northern Ireland. We will work with the restored Executive to consider any proposals submitted for the devolution of short-haul APD. This builds on our recent call for evidence and our work with a technical working group that we have established to look into the operational and possible legal challenges around the devolution of short-haul APD.