Civil Aviation (Consumer Protection and Regulatory Reform) Bill [HL]

Debate between Lord Harper and Lord Berkeley

Committee stage
Tuesday 16th June 2026 Grand Committee

[Lord Berkeley (Lab)]

My Lords, I start with an apology. I could not be here for Second Reading because I was gale-bound on the Isles of Scilly due to the failure of the air services. Therefore, it seems an appropriate time to look at the whole subject of general aviation, as the noble Lord, Lord Davies, said, to see what can be done. I have been lobbying hard for improved navigation and improved services to the Isles of Scilly, where I live most of the time, for about 10 years; I shall come to that in later amendments. It is 10 years since we left Europe with Brexit and cancelled our membership of EGNOS, which I shall come to later.

It is important that general aviation is included in the Bill, and I support much of what the noble Lords, Lord Davies and Lord Moylan, have said. I am not sure about the European Union amendment, but we will come on to that later. It is worth reminding ourselves that the long title of this Bill says that it is to:

“Make provision for the protection of purchasers and users of air transport and airport services”,


and it then mentions

“air traffic and air navigation services”,

all of which are part of general aviation, just as much as they are part of the rest of the aviation world. It is right to have something at the start of the Bill which demonstrates that this is an important subject which needs full consideration.

Much of what is in the Bill is really good, but, as the noble Lord, Lord Davies, said, all the issues relating to general aviation need discussing, such as training, access to small airfields—on the islands or different parts of the country—and how things compare with what has been going on in Europe. I support the amendment from the noble Lord, Lord Davies, and certainly part of the amendments from the noble Lord, Lord Moylan, and look forward to discussing these issues more in subsequent amendments.

[Lord Harper (Con)]

My Lords, I declare my interest, as set out in the register, as non-executive chair of RVL Aviation. I strongly support the purpose clause which my noble friend Lord Moylan has set out because I think most of the discussion on the other amendments will look at passengers by talking about airlines and concentrating on the experience of passengers. I draw attention to the fact that his Amendment 1 also talks about the international competitiveness of the sector, economic growth and the rights of those who purchase air transport services. My understanding of his amendment and of Clause 1 is that the definition of air transport services is not just passengers but those people who purchase freight and cargo services. I see the Minister is nodding assent.

That is important because it is critical to the growth of the economy. Air freight accounts for over 40% of non-EU trade by value, even though it is only about 1% of freight by volume. That is incredibly important to the overall economy, especially for some sectors, such as pharmaceuticals and high-end manufacturing, where we are particularly competitive, and it contributes to our balance of payments. An amendment that means that Ministers, when making regulations, have to ensure that our international trade remains competitive would be extremely valuable.

That is important, because the conversation about rights and the regulatory burden on airlines is often had while not thinking about the cost of those regulations. It does not mean that you do not make regulations if they have a cost; it just means that when you think about regulating, you have to think about the cost, look at the benefit and balance those two things. You also have to look at them cumulatively. My noble friend Lord Moylan touched on that when he talked about the Government’s target to reduce the cost of administrative burdens by 25% over this Parliament.

It is worth putting on the record—this is why the competitiveness of the sector is important—that overall, in 2024, European airlines had a net profit margin of around 3.9%. They are also expected, once all the results are in, to have had a net profit margin of around 4.4% in 2025, with a profit per passenger of around $8 or $9. I accept that that varies hugely by carrier, but it means that we have to think carefully about the costs that we load on to the industry so that we ensure that it remains competitive for both freight and passengers.

Sustainable Aviation Fuel Bill

Debate between Lord Harper and Lord Berkeley

Report stage
Tuesday 10th February 2026 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, this is a very interesting amendment, because a revenue certainty contract, as the noble Lord, Lord Moylan, said, is wonderful for the suppliers. It presumably links in not just the price but the volumes—which may change from year to year —and the sources. The noble Lord opposite mentioned the issue of Drax and where that material comes from every year. Would there be a 10-year guarantee price for that? As the noble Lord, Lord Harper, said, any old agricultural product that was edible could be covered as well. And we have not yet discussed the worry that many people have about the number of trees and everything else being cut down in the Amazon basin, which could also be covered by this. So, a revenue certainty contract is pretty difficult and this amendment is a good start in at least limiting its scope and time.

[Lord Harper (Con)]

My Lords, my noble friend Lord Moylan set out the challenge—the thing you have to justify—to put the revenue certainty mechanism in place. It was certainly one of the things that I grappled with, and challenged the industry on, when I was the Secretary of State for Transport and we were developing the beginnings of this policy. As my noble friend said, the SAF mandate sets out some guaranteed demand for the industry producing sustainable aviation fuel. The challenge I always put to those thinking about investing in producing the technology was exactly the challenge that the noble Lord, Lord Moylan, set out: if you have guaranteed demand, what is the barrier to producing that product?

We discussed this in Committee. The logic is that, for some of these products, it is new technology that requires significant upfront capital investment, and the judgment is that, if you compare it to other similar sorts of investments that these investors are making, the risk is higher than with those other investments. Therefore, if you do not do something to close that gap, you will not see the investment in the technology, particularly here in the United Kingdom, where we want to see the production take place, at least in part, if for no other reason than resilience.

What you are really dealing with is closing the gap between the risks involved in producing SAF and the alternative products that those investors could invest in. I do not think, therefore, that you need an open-ended contract. You need to put some limits around it. I am sure that the Minister will have some responses on what those limits should be, but a very obvious one would be to have a time limit, so that investors have some certainty: they have guaranteed demand and a period when they will get a guaranteed price. That should enable the risk premium to be reduced and enable the investment and production to take place.

If we start from the assumption that it certainly does not need to be an infinite period and should therefore be fixed, the debate is therefore just about what the length of that period should be. Now, the Minister may want to come back and say that the 10 years proposed by my noble friend is the wrong number or limitation period, in which case I would be happy to listen to the arguments that he makes about an alternative period, but I do not think that the right answer is that it can be any length at all, with no cap on it. I would be much more comfortable if we put a cap on it.

Again, if, at some point in the future, there was a clear justification for changing it, there would be nothing to stop this or a future Government coming back to Parliament to change the position. But I do not want to see open-ended contracts in place, particularly since we have legislated for there to be guaranteed demand. So I strongly support my noble friend’s amendment, unless I hear a very good counter case from the Minister.

--- Later in debate ---

[Lord Berkeley (Lab)]

My Lords, I support this amendment, which we discussed at some length in Committee. The amendments then, which other noble Lords supported, covered the relationship between the sustainable aviation fuel used for aeroplanes and the same fuel used for home heating. I declare an interest as having a boiler in Cornwall that survives very well on home heating.

Interestingly, sustainable aviation fuel produced through the HEFA process generates hydrotreated vegetable oil as a by-product. HVO accounts for approximately 30% of the output, a significant amount that should not be overlooked. HVO can play an essential role in helping to decarbonise the 1.7 million oil-heated households that are off the gas grid. Otherwise they use electricity, which is expensive.

Last month, we had a delegation from the village of Kehelland in Cornwall who have all been trying out HVO in their houses for about three years. They travelled, leaving at 2 am, to meet the Minister at DESNZ to present their response to the consultation that we discussed earlier—a 500-mile round trip shows they are pretty committed. But what is interesting is that, in describing their experience of using the fuel, they highlighted how renewable liquid fuels can cut emissions from home heating by up to 88% compared with kerosene—88% is a figure worth having. They work simply as a drop-in replacement. The Government’s consultation said that, of all those considered, this was the most cost-effective option for off-grid consumers.

However, the consultation still questions the feedstock availability for the fuel, which we discussed in earlier amendments today. It is puzzling that the DfT is confident that there is more than enough feedstock to boost SAF production by 22%. The research done by the industry, the EU Commission and the Irish Government indicates that there is enough feedstock—again, we have discussed that at length. I was pleased to welcome the Government’s confirmation in a Written Answer that the targets under the SAF and RTFO mandates

“are set considering global availability of feedstocks and competing demands between transport modes and across sectors of the economy”.

That seems to highlight that there is enough material for both aviation and home heating, so it would be a great shame if we pitted one sector against the other, rather than try to have a bit more of what you might call cohabitation in-between.

To incentivise HVO production, I believe a renewable liquid heating fuel obligation needs to be implemented—that is the solution—triggered under Section 159 of the Energy Act. That would create the necessary market mechanism, in a similar way to the SAF mandate and the RTFO, to give certainty to the industry to distribute HVO to households at an affordable price. I hope that I can persuade my noble friend when he responds to try to ensure that his department, the Department for Transport, and DESNZ are working hand in hand to ensure that we can scale up the production of sustainable aviation fuel to capture the benefits of HVO for home heating. I must not keep asking him for meetings every day, but, if he would accept, it would be very nice to have a meeting with him and our colleague the noble Lord, Lord Whitehead, the Minister for Energy Security, to discuss the benefits of this approach. The consultation closes today, so it seems to be the right time to meet.

[Lord Harper (Con)]

My Lords, I have to confess to having been a little perplexed when the noble Baroness, Lady Pidgeon, moved Amendment 13, because I had just listened to the speech of her colleague, the noble Earl, Lord Russell. I thought my noble friend Lord Moylan’s proposal simply to publish and have some transparency about ticket prices was perfectly reasonable, but the noble Earl, Lord Russell, set out a whole raft of reasons why that was entirely unreasonable, incredibly difficult, completely unnecessary, bureaucratic and costly and why we should not bother ourselves with it, and he then proceeded not to support my noble friend’s amendment. Although I disagree with the noble Earl, he made some perfectly reasonable arguments, although not ones that I agree with. I am perplexed because his noble friend’s amendment is very comprehensive and would place some really quite significant reporting requirements on the Government in a way that seems to be completely at odds with the argument that the noble Earl just made.