(1 year ago)
Lords ChamberMy Lords, the Minister promises a strategy, but my noble friend’s question was about when the benefits of the LNER trial will be rolled out across the whole network. I do not think customers on the whole of the network would like the Minister simply to hope it will happen. What is the strategic objective of when it will happen?
I am not in a position to give that answer at the moment, I am afraid, but when I am, I will certainly let the House know.
(2 years, 6 months ago)
Lords ChamberWhen the noble Baroness raised this with me earlier this week, I thought that the entire thing was morally dubious and surely not appropriate, and my view has not changed. If a passenger is refused the right to fly despite having the correct documents and there being no other grounds for the refusal, they have the right to compensation—I encourage all such passengers to take it up—by being either reimbursed or rerouted to another destination. I completely and utterly take the noble Baroness’s point. As I said, we have not yet heard from Ryanair, and I will take this up with the Aviation Minister and the CAA to ensure that we do whatever we can to make it see sense, frankly, in this matter.
My Lords, the South African Government have recognised that this is not UK government policy, and I also recognise that. But, as the Minister said, Ryanair operates under licences, part of which states that the company has to be in good repute. It is not in good repute if it is, in effect, in breach of Article 14 of the European Convention on Human Rights for discrimination on the basis of language. It is also not in good repute if it gives this whole country a poor reputation among international travellers. Will the Minister not seek to persuade Ryanair or ask it for comment but rather demand a reply? If that is not forthcoming, will she ask the regulator to take action?
I wholly expect that we will get a reply from Ryanair, although our relationship with it has not always been as open as one would like. But the civil aviation consumers and markets group within the CAA is already looking at this and is in contact with Ryanair, so I will not make any further comment at this time, before those conversations have resolved themselves.
(2 years, 9 months ago)
Lords ChamberI am not entirely sure I agree with the noble Baroness that freeports are areas of lawlessness. The point that I am trying to get across is that we are not sure that laws have been broken. Do I feel that, ethically, things have been done that should not have been done? Absolutely. But we do not know that laws have been broken. When it comes to the situation concerning freeports, which the Government wholly support, we are working urgently to establish the facts of what happened. There is a lot of speculation and comment in the media; we need to establish the facts and whether laws have been broken. We will then consider how this might affect any involvement of DP World in British freeports.
My Lords, I agree with the Minister when she says that it is not okay to treat human beings like this, and that we will be holding DP World to account. DP World is not a public listed company but a fully owned company of the Dubai Government. Has any Minister picked up the phone to Sheikh Mohammed or any of the Dubai authorities to say that it is unacceptable to treat workers like this in our country? How will we be holding the Dubai Government to account, since they own DP World?
That is an excellent question to which I do not have the answer, but I will write to the noble Lord.
(3 years, 5 months ago)
Lords ChamberAll of the above; those are the issues we are facing. I have been Roads Minister now for two years, and I had this conversation with the haulage sector two years ago. It was very clear then that foreign labour would not be available to it. It has known that this was coming down the track. The TSC issued a report in 2016, pointing out exactly what the sector needed to do to address the shortage it had then, and yet still not enough has been done. I would accept that the Government stand ready to help. We have listened to the industry and work alongside the it. For example, on HGV testing, I have doubled the number of tests every week from the pre-Covid level. We are doing everything we can, and we need the industry to work in partnership with us.
To ensure that goods kept flowing into the United Kingdom after the end of the transition period, the Government recognised that there was a shortage in the capacity in our ports, so they deferred checks for hauliers. Why are they not deferring the Immigration Rules changes for hauliers, to ensure that they are able to bring goods into this country properly?
Hauliers are able to bring goods into this country properly. The issue is that there is a driver shortage in the UK market. There is also a shortage in the EU market, actually, and in many economies. I can announce to your Lordships’ House today that I have just temporarily extended drivers’ hours. I accept that that is definitely not a long-term solution: we must ensure that drivers’ safety is not compromised, and operators must notify the DfT.
(5 years, 6 months ago)
Lords ChamberThe noble Lord is quite right that there are multiple mini-deals. They expire at different times and we will look to the EU to extend them. It is in the EU’s gift to decide whether to extend them, as it is in our gift to decide whether to reciprocate. Any elements of the arrangements surrounding our withdrawal will, I believe, impact on our ability to negotiate these agreements.
Will the Minister confirm that these are not mini-deals but basic contingency measures, as the Commission itself has defined them? Some will require continuing legislative reciprocity from the UK, which we have not put on the statute book at the moment. They will cover a period of only six months and, as the Commission said, provide for only “basic connectivity” and,
“mitigate to some extent the impact of withdrawal, without however guaranteeing the continuation of all existing air transport services under the same terms as they are supplied today”.
Is it not an outrage that some candidates to be our Prime Minister will receive votes today from Conservative MPs while proposing to enforce this by suspending Parliament, if Parliament does not agree that some of these measures are not in the best interests of our haulage or aviation sectors?
The noble Lord can call these deals what he likes—he mentioned mini-deals—but I would call them the EU air connectivity regulation and EU regulation 2019/501, the basic road freight connectivity regulation. He said that they would mean that transport cannot continue as it does now but the key point, looking at the detail of the deal, is that it is substantially as it is now. However, he is quite right that were these regulations to fall away, which they do on varying dates for various forms of transport, it will be necessary to look hard at what we do thereafter.
(6 years, 10 months ago)
Lords ChamberMy Lords, this has inevitably been a short debate. However, my noble friend deserves commendation for securing this Bill in the ballot and bringing it to our attention. It is a massively important issue for the future of our country. Like many Members of your Lordships’ House, I am a regular flyer and to that extent I declare an interest: I benefit, as do others, from there being a secure, safe and reliable aviation sector in this country. However, as my noble friend indicated, this does not happen by accident and it is therefore right that we should focus on this vital issue.
After this debate I will to go straight to Heathrow airport to fly home. As a regular flyer from that airport, I will be on a plane which is one of 3,000 air departures from UK airports. I will be in the minority because it will be a domestic flight. As my noble friend indicated, 60% of those flights will be taking off and landing in Europe, and so our relationship with our nearest neighbours within this aviation market and industry is of vital importance. It has the same profile as our relationships for trade and, as my noble friend Lord Paddick indicated, our relationships connected to immigration, intelligence and data are all interlinked.
If I had been a Member of this House 40 years ago and I was travelling home to Edinburgh, the situation would have been radically different. If you visit the air museum at East Fortune outside Edinburgh, you can see the British Airways standby plane, which was always there in case a shuttle flight was full. A traveller would have a rip-off ticket as part of a carnet for the Edinburgh to London shuttle flights—no ID was needed, no booking was necessary: you just turned up with your tear-off slip—and, if the flight was full, the next flight would be put on for that shuttle route. It is inconceivable that we would go back to historical regulation. My noble friend is right that we need to be part of the future, and that is why enhanced clarity is necessary.
I have lived all of my life as a British subject, and now as a European Union citizen, and the growth of air travel is part of a generational trend. When I was born in 1974, there were 400 million air passengers that year in the world. In 2016, there were 3.7 billion. That is why a complex lattice of international commitments and regulations is in place. It is necessary that the United Kingdom is not only part of those after Brexit but continues to play a role in shaping them. That is because, far from Britain having been held back by our membership of the EU and organisations such as the European Aviation Safety Agency, the single European sky initiative and the single market, we have benefited from them and in many respects we have shaped the regulations.
The issue of the European Aviation Safety Agency, which has been referred to in the debate so far, in many respects sums up the dilemma that the Government have placed themselves in and are now inflicting on the country. This is a Community agency with its own legal personality and is governed by European public law. Membership of the European Aviation Safety Agency is not consistent with government policy—it goes against the red line that the Prime Minister has set—but we have heard the Transport Minister say repeatedly to our aviation industry that the UK will continue to come under the aegis of the agency.
If we do not come under the EASA, we have heard from the chief executive of the Civil Aviation Authority, Andrew Haines, about the consequences. He has said that it was his hope that we would remain an active member of the EASA, because it would impose a massive regulatory burden to separate ourselves from it. He has highlighted the fact that the UK and France already provide two-thirds of the input to aviation regulation—that reflects the leadership role we currently play—and some 90% of the outsourced activity of the agency is carried out by France and the UK. That relationship is fundamental to our ongoing negotiations on trade, and it is inconceivable that any modern trade agreement will not have aviation regulation as a key component, covering both safety and the environment. If the Government have set this red line—when I asked the Minister’s colleague, the noble Baroness, Lady Fairhead, about it last week, she said that it would be inconsistent with the red line that the Prime Minister has set—we are putting ourselves in a position where we would be setting back the United Kingdom.
If we take an alternative route like that of Switzerland and its relationship with the single European sky initiative, we see that it has accepted EU aviation law and ECJ jurisdiction. However, Swiss airlines have been granted only seven of the nine possible freedoms of the air. Are we seeking all of the nine freedoms in our new relationship with the European Union while being completely separate from ECJ jurisdiction? I would like to hear from the Minister how that will be at all possible.
I conclude by saying that my noble friends are absolutely correct to look for clarification in this area. We are not seeking to have the book that our negotiating team is using, but we are hoping to be shown the same respect in this Parliament that the European Parliament has in the ongoing negotiations. When the Commission has been set its mandate by the European Council, it will be made public; we seek the same—we want clarity on the single European sky, clarity on the market for aviation and clarity on the EASA, and we need it now. That would be the respectful position for our Parliament, and it would mean that our aviation industry and passengers have the confidence they need in this crucial industry for our economy.
My Lords, I add my thanks to the noble Baroness, Lady Randerson, for raising the important issue of our future air services relationship with the United States, and I am most grateful to all noble Lords who have participated in this debate. I agree with the noble Lord, Lord Snape, that it is a pleasure to discuss aviation, a sector that is a great UK success story.
We have the largest aviation network in Europe and the third largest globally. Our airlines carry 144 million passengers and more than 1 million tonnes of cargo annually; and as the noble Baroness, Lady Randerson, said, the sector contributes some £52 billion annually to our GDP. It supports almost 1 million jobs in our country and is a key facilitator of exports, carrying goods worth £116 billion between the UK and non-EU countries. It is a reflection of our great trading economy that we have such an extensive global network of air services and we are determined that it will continue after Brexit.
The Bill highlights the desirability of a continued relationship with the United States—the noble Baroness is right that air services between the UK and US are of great importance to our economy. Some 20 million passengers a year fly between the two countries for business, tourism and to visit friends and family. That is second only to the number of passengers to Spain, which is our most popular overseas destination. Regular services to and from the US are available on more than 60 different airport pairings and new direct scheduled services start regularly. Air services between the UK and US help support more than £85 billion of trade between the two countries. This dynamic market is a global example of the benefits of competition and choice in air services. Of course, consumers benefit from competitive fares and a breadth of choice and we want this to continue after we have left the European Union.
As the noble Baroness pointed out, the current governing arrangement for UK-US air services is the EU-US Air Transport Agreement, often referred to as the EU-US open skies agreement. This agreement, dating back to 2007, lifted many restrictions that featured in earlier bilateral agreements and has removed all restrictions on direct flights. It also provides for code sharing, allowing, for instance, UK airlines to market services on US partner airline networks using their own flight codes. It is a multilateral agreement between the EU and its member states on one hand, and the United States on the other, with Iceland and Norway having joined the agreement as parties in their own right in 2010. This liberal market access and the competitive environment benefit passengers in terms of choice, connectivity and value for money. Passengers can fly directly to more than 20 US airports from a variety of points in the UK and can connect to virtually anywhere in the US.
A study last year reported savings of more than £200 per passenger compared with ticket prices before the agreement was signed. We aim to preserve this access after we leave the European Union, ensuring that the aviation industry and, of course, passengers continue to benefit. In preparing to exit the EU we have listened very closely to the aviation industry on both sides of the Atlantic. It has been clear in explaining the need for early certainty about the operating landscape. As has been pointed out in this debate, airlines sell tickets up to a year in advance and decisions on the deployment of capital and other resources also need to be taken well in advance to plan and grow routes. We have two overarching aims for future UK-US air arrangements. The first is to transition the liberal market access arrangements currently available under the EU-US agreement. The second is to provide the industry with the certainty it has asked for as soon as we possibly can.
Having set out the Government’s position I turn to the terms of the noble Baroness’s Bill. The Bill requires Ministers to,
“have regard to the desirability of continuing to participate”
in the EU-US Air Transport Agreement. As I and other noble Lords have mentioned, Iceland and Norway have both acceded to the terms of the EU-US Air Transport Agreement as states in their own right. I believe that the aim of the Bill is for Ministers to consider the UK acceding to the agreement in the same way. As I said earlier, we recognise that the aviation industry needs early reassurance about the terms under which UK-US air services will operate after we leave the EU. The noble Lord, Lord Paddick, is right to say that to do nothing is not an option. When we leave the EU, the EU-US agreement will no longer be legally operable for us; it would need to be amended to enable our continuing participation. This would require the unanimous agreement of all parties to it—that is, the European Union, each of the 27 other member states, Iceland, Norway and the United States. Such unanimous agreement would, of course, take time.
The Government believe that the quickest, simplest and clearest way to provide the early certainty so needed by the aviation sector is by concluding a new, bilateral arrangement with the US that will apply as soon as the EU-US open skies agreement ceases to apply to the UK. That is exactly what we are working towards. Department for Transport officials have already undertaken three rounds of informal discussions with their US counterparts on our future bilateral arrangements. A further round of discussions will take place with the US in the coming weeks. There is broad consensus on the outcomes we wish to reach. Both sides understand that preservation of the current liberal market access arrangements should be the starting point and that industry needs to be confident about what it can or cannot do in good time. These discussions are going well and I hope that this goes some way towards reassuring noble Lords concerned about our relationship.
I take this opportunity to highlight that the Government do not rule out participation in the EU-US Air Transport Agreement at some point in the future. The UK could apply to become a party to the agreement as a state in our own right if that offered the optimum solution for the circumstances of the time. However, as I say, the consent of all other parties to the agreement would be required and that would take time, so the Government believe that the best option to provide early certainty is a new, bilateral agreement with the United States.
I turn to some questions raised by noble Lords. The noble Baroness, Lady Randerson, raised the issue of third countries. Where market access is currently determined by EU-negotiated arrangements we are working with those countries, including Canada, to ensure that the new, bilateral arrangements will be in place well before we leave the EU. I hope to provide further updates on these soon. Of course, we already have bilateral air services agreements with 111 countries, which will continue as we leave the EU.
The noble Lord, Lord Snape, correctly highlighted many details of the EU-US deal. We do not propose to open these in discussions with the US at the moment. For example, cabotage within the US will not be up for discussion. Our aim is to replicate the current arrangements as they stand, as soon as possible, so as to provide certainty to industry. I quite agree with the noble Lord that we cannot simply say that it will be all right on the night.
We have partial clarity from the Minister that the UK will seek a bilateral agreement with the United States and then, in due course, there will have to be a bilateral relationship with the European Union. When does the Minister believe that that will be required to be ratified by this Parliament to offer the security for the industry that she says is desperately needed? Can she offer clarity that, in discussions with the United States on this bilateral agreement that the Government seek to intend, part of that agreement will be that UK safety will be regulated by the European Aviation Safety Agency?
I shall come to EASA, but that will not be included in the UK-US bilateral agreement that is being discussed; that will be a separate negotiation and conversation with the European Union. On the timing of ratification, I am afraid that I shall have to get back to the noble Lord, but the aim is that this will be in place well before we leave the European Union, to provide certainty.
The noble Lord, Lord Paddick, and the noble Baroness, Lady Hayter, asked about customer protection. The UK has always been a leader when it comes to providing protection for holidaymakers, and we want that to continue to be the case whether we are inside or outside the European Union. The consumer protections based within the EU will be retained through the European Union (Withdrawal) Bill, so that British consumers will be able to rely on the same rights as they have now after we leave the EU. The absolute aim is to provide consistency with what they currently have.
The noble Lord, Lord Purvis, raised EASA. We are working closely with industry on this and, of course, we are very aware of all its views and what is needed for the sector. Again, we desire a speedy agreement on this. We are representing those views very clearly in our conversation with the EU, and will continue to keep the sector updated as negotiations progress. There is a precedent for non-EU states to be part of EASA; Switzerland and Norway are, for example. We continue to examine the possibility and suitability of such an arrangement.
On the CJEU, the Government have been clear that the UK will no longer be subject to direct CJEU jurisdiction after we have left the EU. There are models—
(10 years, 6 months ago)
Lords ChamberMy Lords, the briefing notes accompanying the Bill say that its purpose is to:
“Bolster investment in infrastructure by allowing stable long-term funding, deliver better value for money and relieve unnecessary administrative pressures. The Bill would increase transparency of information provision and improve planning processes, allowing us to get Britain building for our future and compete in the global race”.
I do not think that any noble Lords who have taken part in this debate could disagree with those motives. Indeed, we have had an interesting debate on whether or not the Bill will deliver what this country desperately needs—a modern, efficient infrastructure to allow the economy to continue to grow.
When I served in the Scottish Parliament, my constituency had the unenviable record of being the largest area in Europe not served by a railway line. That is being corrected as the Borders Railway is finally being restored following its closure in 1969. I was intimately involved in that process during my time in the Scottish Parliament. I had the unenviable record of serving on the Scottish parliamentary committee that approved the Edinburgh tram scheme, which I confess I did not readily admit to Edinburgh taxi drivers when I was a passenger in their cabs. Therefore, I am fully aware of the complexity involved in bringing to fruition the infrastructure that we need.
The Borders Railway was a difficult project which the Scottish Government had wanted to fund—I think erroneously—through what they claimed was an innovative funding route, but which I was concerned was an untested and unsure funding route. However, the Government ultimately changed their position on that and are now using the regulated asset base for United Kingdom funding. I am pleased to note that the Scottish National Party is using United Kingdom infrastructure funding support to deliver a Scottish infrastructure project. The tram scheme, which the Scottish Parliament approved but was not subsequently built in full, is costing £125 million a mile. Some people refer to gold-plated infrastructure projects, but, as regards that scheme, the track itself could be said to be gold-plated. Our national objective is to ensure that the private and public sectors have the necessary professional capacity in this regard as well as proper planning and legislative frameworks. One thing that has not emerged in the debate so far is the factor which can make an infrastructure project—whether it involves transport, housing or energy—successful or a source of difficulty, as with the trams, and that is the professional capacity of the teams that put these projects together. If this Bill is to be successful, the projects which it seeks to deliver in a more efficient way will be delivered only if there is that professional capacity.
I wish to devote the rest of my remarks to an issue that was referred to in the gracious Speech and in the Minister’s introduction to this debate—offshore oil and gas. However, that issue is not included in the Bill. I will not draw the conclusion drawn by the noble Lord, Lord Adonis—namely, that we will have to legislate for that aspect on the hoof. The Wood review reported to my right honourable friend Edward Davey on 24 February this year. That review is a substantive piece of work with significant consequences for the whole of the United Kingdom oil and gas sector. Given the timeframe within which the Wood review reported to the Government, it is understandable that amendments to the Bill on that issue will have to be tabled during its passage through Parliament. Agreement will have to be reached with the industry to ensure that the legislation is as robust as possible. The clear commitment that was given by the Government in accepting Sir Ian Wood’s conclusions and recommendations in full has been welcomed by the industry. Similarly, the statement in the gracious Speech that this year’s legislative programme will contain measures to allow for “maximising North Sea resources” is also welcome.
The noble Lord seems to be proposing a new constitutional principle, whereby the Government say that they have an idea but they are not sure what it is, so they say, “Here is a Bill. When we have done some more thinking on it, we will introduce it”. This could be applied across the board. That is not how Parliament works. Is this a new procedure being advocated by the noble Lord’s Benches, in which case could he give us his own little background constitutional paper as to how Parliament should work on this basis?
The noble Lord obviously has more experience in this House than I have. I am a mere new Member. However, as a mere new Member, I have been an observer of parliamentary procedure for long enough to realise that it is perfectly common for a Government to table amendments, which on occasion have been substantive. Indeed, over many years the party opposite has tabled amendments on substantive points. My point, which the noble Lord unfortunately did not take on board but which I hope others will and will be more charitable in understanding it, is that when legislation is being brought forward which will make a significant contribution to the success of the British economy, it is best done after proper and due participation and consultation with the sector which it will legislate. That is why the Government have indicated that they will bring forward measures before Committee, as the Minister said in her opening speech, to which the noble Lord no doubt listened.
In the debate on the gracious Speech in another place, the Prime Minister gave a strong indication to my honourable friend Sir Robert Smith, the Member for West Aberdeenshire and Kincardine, in relation to the oil and gas industry:
“My hon. Friend speaks very powerfully for his constituency and for that absolutely vital industry which, as he says, is vital not just for Scotland, but for the whole of the United Kingdom. We are going to make sure that the recommendations of the Wood review are included in our infrastructure Bill, which is a key Bill at the heart of this Queen’s Speech”.—[Official Report, Commons, 4/6/14; col. 27.]
The Prime Minister was right: this is a vital sector. Therefore, I hope that during the passage of this Bill we will give due consideration to the impact which that sector makes to the whole United Kingdom economy. It is 50 years since the first licences were issued. Some 42 billion barrels of oil have already been produced and up to 20 billion more could still be produced. The United Kingdom continental shelf production meets 60% of UK oil demand and 50% of UK gas demand and directly and indirectly supports 450,000 jobs across the UK. It paid 9% of all UK corporate taxes in the last financial year, which is 2% of all United Kingdom tax receipts. Decommissioning relief introduced by this Government represents around 1% of our GDP.
The Government intend to include measures in the Bill to take forward the recommendations of the Wood review. The Bill provides us with an excellent opportunity to ensure that the UK continental shelf is able to face the very complex and difficult challenges which lie ahead. Although more than £14 billion was invested in the continental shelf in 2013—a record amount—production has fallen by 37% between 2010 and 2013, and production efficiency has fallen from 80% in 2004 to 60% in 2012. Rising exploration costs and falling success rates have led to fewer wells being drilled. This was the background to Sir Ian Wood being asked by my right honourable friend Edward Davey to carry out a review into how the UK continental shelf can maximise economic recovery for the whole of the United Kingdom.
Sir Ian Wood’s four recommendations are significant. Two of them in particular require legislative change in this Parliament; and both will, I hope, be the source of proper scrutiny when the Bill passes through Parliament. One is to create a new arm’s-length regulatory body to ensure that there is collaboration in exploration, development and production across the industry. Although it will be arm’s-length from the Government, they will be a partner. My right honourable friend Danny Alexander, the Chief Secretary, only last week indicated at the Oil and Gas UK conference that the Government accept this recommendation in full. He also announced that the authority should be called the “Oil and Gas Authority” and be based in Aberdeen. As regards the other recommendation of Sir Ian Wood, my honourable friend said that it will ensure that protocols and processes will be in place for dispute resolution and for ensuring that there is better co-ordination and collaboration among the industry, and that the licensing regime will be rationalised. All these measures will require proper and full scrutiny by Parliament. That is why the signal in the Queen’s Speech and the Minister’s announcement are significant.
Another area that has been touched on is taxation and revenue. The Government have stated that the new oil and gas authority will carry out a wholesale review of the ring-fenced tax regime for the oil and gas industry. This has the potential to be a hugely significant piece of work, which will have repercussions not only for the Scottish economy, where the oil and gas sector represents nearly one-third of the entire GDP, but for the United Kingdom as a whole.
Finally, I seek further clarification from the Minister. It was welcome that she indicated that it is the Government’s intention to bring forward amendments before Committee, but is it the Government’s intention that those amendments will cover all the recommendations of the Wood review on the relationship with industry, how clear they will be on the funding of the authority, and how that authority will take forward its work on the fiscal review? Sir Ian Wood gave a clear steer that he wanted the new authority and regulator, and his recommendations, to be taken on board so that the industry can look forward with confidence to a strong and clear regulatory regime and licensing for the future of the sector. It is the Government’s intention; I hope that it is Parliament’s will and that no further constitutional theory needs to be put forward to ensure that the future of the oil and gas sector is as strong as it can be, so that we can rely on it well into the future.