Draft Common Rules for Access to the International Market for Coach and Bus Services (amendment etc.) (EU Exit) Regulations 2019
Nusrat Ghani Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Common Rules for Access to the International Market for Coach and Bus Services (Amendment etc.) (EU Exit) Regulations 2019.
It is an honour to serve under your chairmanship, Sir Christopher. The draft regulations that we are considering will be made under powers in the European Union (Withdrawal) Act 2018 and will be needed in the event of no deal. The instrument amends the retained European Union legislation governing access to the international passenger transport market and associated domestic implementing legislation, to deal with deficiencies that would otherwise exist when the UK leaves the EU.
EU regulation 1073/2009 establishes the conditions for the international carriage of passengers by coach and bus within the EU and cabotage within member states by non-resident EU operators. It covers regular timetabled services, and occasional services such as those for holidays and tours. It establishes for this purpose a system of Community licences, which act as the international bus and coach licences used within the EU, to be issued by the competent authorities of member states. Section 3 of the withdrawal Act will preserve EU regulation 1073/2009 in domestic law, and—[Interruption.]
The Chair
Order. I understand that the hon. Member for Glasgow South West is finding it difficult to hear the Minister because of the conversation that is taking place. I hope hon. Members will enable those who wish to listen to so do.
Ms Ghani
I will perhaps speak a little bit louder, Mr Chairman. Section 2 will preserve implementing domestic legislation, including the Public Passenger Vehicles Act 1981 and the Road Transport (International Passenger Services) Regulations 2018. The statutory instrument adjusts the language and references in those pieces of retained legislation and five others to recognise that the UK is no longer a member state.
The SI amends the retained UK version of regulation 1073/2009, and allows EU-based operators to continue to access the UK market in a no-deal scenario on a unilateral basis by recognising Community licences and control documents issued by EU authorities under EU legislation. Existing authorisations for international regular services to the UK will continue to be recognised to avoid any additional administrative burden for operators.
In respect of the retained EU legislation, this SI covers Northern Ireland, too, but that devolved Administration will need to make consequential changes to their legislation; that is the subject of a separate instrument. The retained regulation 1073/2009 will apply only to EU-based operators. In the event of no deal, UK operators will be able to continue to access the EU market through the UK’s accession to the Interbus agreement, an EU multilateral agreement that allows bus and coach operators to run occasional services between participating countries. The UK is currently party to the agreement through its EU membership. As part of contingency planning for no deal, the Government have deposited the UK’s instrument of accession to the Interbus agreement, meaning that the UK will become a member of the agreement in its own right. Due to the wording of the agreement, it may only enter into force on the first of the month.
The Government have made a commitment to reducing the adverse impact of EU exit on businesses and citizens, and that applies to people’s ability to make international journeys by bus or coach. Coach travel provides a safe and environmentally friendly choice of travel, and its low cost is particularly valued by individuals on low incomes. Coaches from continental Europe bring in some 1.6 million visitors each year, and in Northern Ireland travel across the border is a commonplace daily activity, with 900,000 journeys across the border per annum. These draft regulations are essential to support our tourism industry, and to ensure that international services that are, in effect, cross-border local bus services on the island of Ireland can continue to run.
Ms Ghani
I thank hon. Members for their consideration of the regulations. Let me turn to some of the points made. Apologies for having been a little remiss; the proposal comes into play on 1 April. The UK will have completed formal accession to the Interbus agreement by the end of March, and it comes in on the first Monday after that, which is 1 April. My apologies for not mentioning that earlier. Engagement is ongoing with the Interbus depository to ensure alignment between the end of the formal accession period for Interbus and the short extension to article 50.
The other question was about cabotage and Northern Ireland. Under the agreement, cabotage can continue between the Republic of Ireland and Northern Ireland. Should we leave with no deal, we will continue to work with the European Commission and the Republic of Ireland to ensure that any long-term transport arrangements between the UK and the EU take into account the unique transport demands on the island of Ireland.
There was also some conversation about the impact that the agreement has on the sector, and potentially on the cost. I place on record the fact that my officials have been working with the Confederation of Passenger Transport, which is the main industry representative body, and the Federation of Passenger Transport Northern Ireland, to ensure that stakeholder consultation has taken place, and to understand the impact of this statutory instrument. All stakeholders support the UK’s decision to join the Interbus agreement independently. Any costs are noted as minimal, and any certification or passporting to allow this business to continue tends to be over a five-year period; the authorisations last for five years. Work has taken place to see how much work that would involve going forward.
Rachael Maskell
Could the Minister give some clarity on the impact on EEA countries? What will happen to their operations?
Ms Ghani
The Interbus agreement works with countries beyond the EU. There are another six countries that it is working with. My officials are working closely with them to put in place bilateral agreements to allow processes and practices that are in place to continue.
I thank the hon. Member for Glasgow South West for his question about passenger rights. We have worked to ensure that passenger rights will be as they are today; we are taking on board any part of EU legislation that we can adopt into UK legislation. As maritime Minister as well, I must say that we have gone above and beyond what is expected; we are working to international guidelines, not just EU guidelines, in this area.
I believe that the Committee is in agreement that these are serious regulations that we need to take forward to ensure that tourism, which is incredibly important business between the UK and the EU, can continue. I hope that hon. Members will support this instrument, so that we can ensure international coach travel access, and particularly regular services, to the UK for EU bus and coach operators, in much the same manner as before, in the interest of passengers. That is the reason why they will be supporting these regulations, which I commend to the Committee.
Question put and agreed to.
DRAFT MERCHANT SHIPPING (PASSENGERS' RIGHTS) (AMENDMENT ETC.) (EU EXIT) REGULATIONS 2019
DRAFT MERCHANT SHIPPING (STANDARDS OF TRAINING, CERTIFICATION AND WATCHKEEPING) (AMENDMENT) (EU EXIT) REGULATIONS 2019
Nusrat Ghani Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Merchant Shipping (Passengers’ Rights) (Amendment etc.) (EU Exit) Regulations 2019.
The Chair
With this it will be convenient to discuss the draft Merchant Shipping (Standards of Training, Certification and Watchkeeping) (Amendment) (EU Exit) Regulations 2019.
Ms Ghani
It is an honour to serve under your chairmanship on this bright morning, Mr Bailey.
The two sets of draft regulations will be made under powers in the European Union (Withdrawal) Act 2018. The Act retains directly applicable EU legislation in UK law and preserves EU-derived domestic legislation. Section 8 also makes provision for Ministers to correct deficiencies in retained EU legislation that arise from the UK leaving the European Union. To ensure that the retained legislation remains operable, both sets of draft regulations change references to member states and the Commission to the Secretary of State or the United Kingdom. The draft regulations also change definitions and other wording to reflect the UK’s position outside the EU.
The first set of draft regulations deals with the certificates that seafarers need to hold to demonstrate their competence to perform certain roles on ships. The international convention on standards of training, certification and watchkeeping sets the standards of competence for seafarers internationally. Through two directives, the EU harmonised the way in which member states implement the requirements of the STCW convention. The EU directives and our international obligations are implemented by the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015, which will be amended by the regulations under consideration. The Government have decided to continue to recognise seafarer certificates from EU and EEA countries. The UK will also continue to recognise the certificates from those non-EU or EEA countries that are approved by the EU and currently recognised by the UK. The draft regulations enable the Secretary of State to maintain the recognition of certificates from such countries.
The draft regulations allow the Secretary of State to recognise additional parties to the STCW convention and the certificates that they issue. The Secretary of State must be satisfied that any such country complies fully with the requirements of the convention. The regulations also enable the Secretary of State to remove recognition from any country if he is satisfied that the country no longer complies with the convention. The regulations replace a requirement to report to the European Commission on compliance with the STCW convention with a requirement to report on compliance to the secretary-general of the International Maritime Organisation.
The 2015 regulations that are being amended are about the seafarers who work on UK-flagged ships. With the support of Nautilus International and the Chamber of Shipping, we are working with EU countries to ensure continuity for the UK-trained seafarers who work on EU-flagged ships.
The second set of draft regulations deals with passenger rights and other issues involving the carriage of passengers by sea. Under EU regulation 1177/2010, UK passengers travelling by sea and inland waterways benefit from a comprehensive set of rights and entitlements. The regulations put in place consumer protections that, among other things, allow for redress in respect of delayed and cancelled journeys. They also define the standards that industry must uphold in respect of disabled passengers to provide them with the same opportunities and assistance to travel as they have in other transport sectors at no extra cost. Furthermore, the International Maritime Organisation’s Athens convention requires shipowners to maintain compulsory insurance, which must be sufficient to cover third-party claims in respect of death or personal injury to passengers and the loss of or damage to luggage and vehicles.
The draft regulations amend EU regulations 1177/2010 and 392/2009 to ensure that they continue to function correctly as part of UK law. The changes will not affect passengers in any way and will serve to ensure that they continue to enjoy the rights and entitlements available to them today. The regulations also amend the EU-derived domestic legislation that implements EU law in that area.
So that the UK continues to meet its international obligations under the Athens convention once the UK leaves the EU, the draft regulations will transfer power from the European Commission to the Secretary of State. That will enable the UK to keep up to date with changes to the compulsory insurance requirements and liability limits for shipowners, as and when they are adopted by the International Maritime Organisation. That will not create a burden on shipowners, as state certificates are easily obtainable from state parties to the convention, including, for example, from the Maritime and Coastguard Agency in the UK. The proposed change will therefore not have any significant impact on industry. It simply ensures that we are complying with our international obligations under the convention without exemption.
The changes made by the draft regulations will ensure that retained EU law operates effectively, so that we have an effective system for ensuring that seafarers working on UK ships are qualified to do so, and that passengers can continue to rely on the rights and entitlements they currently enjoy. They are also important for ensuring that the UK can continue to meet its international obligations and passenger safety commitments. I commend the draft regulations to the Committee.
Ms Ghani
I thank the hon. Members for Kingston upon Hull East and for Kilmarnock and Loudoun, and the right hon. Member for North Durham, for their consideration of the draft regulations, which deal with important issues relating to the carriage of passengers by sea and the qualifications that seafarers must hold. The regulations are designed simply to ensure that the EU-derived legislation will be retained in UK law and continue to function as intended. They make the changes appropriate to ensuring that the existing regulatory framework is retained and operates effectively when we leave the EU.
On the question of basic seafarer training, possible changes to STCW training requirements and the UK Government’s position, I emphasise the fact that the UK is party to the STCW convention and it is our policy to continue to apply changes to the convention in domestic law.
On how we will work with countries to ensure that our seafarers and their certificates are recognised, we are indeed working with European countries on a bilateral relationship and working in partnership with Nautilus International and the UK Chamber of Shipping to put in place a simple process for the Commission to recognise UK seafarers in future if we leave without a deal. We are focused on ensuring that the arrangement is reciprocated. The hon. Member for Kilmarnock and Loudoun must know that my portfolio includes responsibility for taking care of our seafarers.
The hon. Gentleman also mentioned countries outside the EU and EEA; already within the convention 50 countries are recognised and half of those are third- party countries, so we will continue to work with them. I believe there are about 24 or 25.
There was also a question about euros; I must say I was not expecting that this morning, but I am grateful to the right hon. Member for North Durham for raising it. The exchange rate was set at the beginning of the drafting process, as is normal. I am not sure what more I can say about the financing and the particular point he raised, but if he will allow me, I will write to him in detail to confirm the absolute answer to that. I would not want to give him anything inappropriate right here and right now.
Mr Jones
I accept the Minister’s explanation of why the 2017 figure was used, but I think she ought to remind her officials that when this regulation is laid, the information put before the Committee should be up to date, because there is clearly a more appropriate figure to use than the 2017 one. It is not a great point, but I think it is a point worth noting.
Ms Ghani
It is indeed a valuable point and no doubt it has been noted, but as the right hon. Gentleman will know, there are always processes in place and that process has been followed when exchange rates are set. No doubt his point will be noted and there will be a comment on it in future in case it is raised. I am sure my officials have made a note.
I am pleased that the Committee supports the regulations. They are appropriate to ensuring that the retained EU legislation relating to seafarer qualifications, passenger rights and the carriage of passengers by sea continues to work effectively in the UK from day one after exit. I commend the regulations to the Committee.
Question put and agreed to.
DRAFT MERCHANT SHIPPING (STANDARDS OF TRAINING, CERTIFICATION AND WATCHKEEPING) (AMENDMENT) (EU EXIT) REGULATIONS 2019
Resolved,
That the Committee has considered the draft Merchant Shipping (Standards of Training, Certification and Watchkeeping) (Amendment) (EU Exit) Regulations 2019.—(Ms Ghani.)
Bus Services: Greater Manchester
Nusrat Ghani Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I thank the hon. Member for Oldham West and Royton (Jim McMahon) for bringing this important issue to the House, and I welcome the opportunity to debate it and to collaborate on how we can continue to support and promote buses. I was particularly touched by the throwback images and his first impression of a bus. We all had those back in the day.
Buses play a hugely important role in our transport system. As we heard, they connect our communities to the workplace and to vital public services. They support our economy, they help to tackle congestion and they have an important contribution to make in reducing emissions—I hope to come on to that. I share the hon. Gentleman’s concerns about bus passenger numbers, which vary across the country, but we must not forget that there are over 4.4 billion bus journeys a year and buses remain the most popular form of public transport.
It is interesting to know—this is why we are all here and championing buses—that passenger satisfaction remains consistently high, with 88% of passengers satisfied overall with their bus journey. I cannot think of any other public service that rates so highly. We should take a moment to thank bus drivers, who are key to good journeys, and good bus companies that operate a good service. The benefits of a reliable and innovative bus service are clear: greater productivity and communities that are connected, rather than apart. That is why the Government remain committed to improving bus services and expenditure on buses.
Each year, my Department provides about £250 million in direct revenue support for bus services in England via the BSOG—the bus service operators grant—scheme. Of that, about £43 million is paid directly to councils outside London to support buses that are not commercially viable but considered socially necessary. The rest goes to commercial bus operators. Without that support, fares would increase and marginal services would disappear. Government funding supports the approximately £1 billion spent by local authorities on concessionary bus passes every year. The Government have committed to protecting the national bus travel concession, so that about 10 million people get the support that they need to travel off-peak anywhere in England.
The hon. Gentleman raised the issue of younger travellers. The Government recognise that young people’s travel and the level of fares is a complex area. There is no statutory obligation to provide a discounted travel price to young people, but many commercial and publicly funded reductions are available. I was particularly pleased to see Transport for Greater Manchester introduce its Opportunity Pass, giving all 16 to 18-year-olds free bus travel. Since 2010, the Government have invested over £450 million in bus-related local authority transport schemes, including £32.5 million in the Manchester Cross City bus scheme, to deliver a range of bus infrastructure and congestion management measures. That was no doubt welcome in the hon. Gentleman’s constituency.
To support buses today and to help them into the future, the Government delivered the Bus Services Act 2017, which contains a range of options for how to improve local bus services in England. In addition to franchising, there are new and improved options to allow local transport authorities to enter into partnership with their local bus operators to improve services for passengers. Partnership working between local authorities and their bus operators achieves the best results. It is not always about funding. Bus passenger numbers are up 50% in Bristol, 36% in South Gloucestershire and 31% in Reading. In York, the city council and operators launched a customer charter setting out the standard of service passengers can expect, and have committed to a range of measures to encourage bus use. Those are just a few examples of how effective partnerships can work.
Partnerships may not be the best solution in all areas. The 2017 Act also gives local authorities the potential to use new powers to franchise bus services in their areas. Like the system in London, franchising will enable authorities to specify the services that passengers want and deliver an integrated network of services. Mayoral combined authorities such as Greater Manchester are provided with automatic access to franchising powers, reflecting the clear, centralised decision-making responsibility for transport they hold. All the powers needed for Greater Manchester to franchise its bus network are already in place. However, the Greater Manchester Mayor felt he needed additional powers to fully consider bus franchising for Greater Manchester. Buses fall under many Departments, so the order that will be debated in the House tomorrow to give the Mayor the additional powers he has requested is being managed by the Ministry of Housing, Communities and Local Government.
Jim McMahon
Just for the record, the additional powers the Mayor of Greater Manchester will receive through the statutory instrument tomorrow relate to precepting powers to pass the charge on. The Government have not provided the funding required to deliver bus franchising in Greater Manchester, so it now has to go on the council tax payers of Greater Manchester.
Ms Ghani
The hon. Gentleman makes a valid point about the statutory instrument tomorrow, but funding for buses, especially for Manchester, is particularly high compared with other parts of the country. It does very well for buses through different types of funding across the Government. For example, I sign off on budgets for low-emission buses. Manchester is always very good at putting together fantastic bids and securing funding, including, I believe, a section of the £2.5 billion transforming cities fund, which will again provide an opportunity to support buses and tackle congestion, thus bringing communities together.
The hon. Gentleman talked a lot about how services can improve, especially when more information is available on routes and ticketing, and accuracy and transparency on fares. That is why the open data part of the Bus Services Act is absolutely key. We know that passengers want to have good information and clarity not only about when they can get their bus but on how much their ticket is going to be. The bus open data powers in the 2017 Act will go further than the partnership provisions requiring all bus operators of local services in England to open up route and timetable, fares and tickets and real time information for passengers from 2020. Those improvements aim to remove uncertainty in bus journeys, improve journey planning and help passengers to secure best value tickets.
The hon. Gentleman touched on accessibility. We recently launched the inclusive transport strategy, which looked at how we can further reinforce the accessibility that buses have and remind drivers in particular which parts of the bus are available for wheelchair users. That work will continue.
I will touch on air quality because the hon. Gentleman raised that valid point. The environment is absolutely key for our constituents and buses across the UK are cleaner than ever, with 15% of the fleet now operating using low-emission technology. The ultra-low-emission bus scheme was announced in March 2018, making £48 million available for local authorities and operators. He will be pleased to be reminded that bus operators operating in Manchester and the Greater Manchester Combined Authority received £14.76 million, which will fund 70 electric buses and support infrastructure.
Debbie Abrahams
The Minister said that 15% of buses are low-emission buses. What timescale are we looking for to get to 100% of buses being low emission?
Ms Ghani
The Department is doing what it can through the money that it is making available—for example, the £48 million that I mentioned—and the assumption is that that will help not only to retrofit buses but to encourage bus operating companies to invest in their infrastructure. We know that one reason why people will jump on a bus is that they realise that it is a cleaner way to manage the environment.
I fear that I may be running out of time. We have to accept that there is no single solution that will work everywhere. I am confident that our commitment to local transport and the powers in the Bus Services Act will help to drive up bus numbers, as we would like to see across the country, but we must remember that buses are managed by local politicians, local authorities and bus operators. Only they can deliver better services by working together. I look forward to working with the hon. Member for Oldham West and Royton and anybody else who is passionate about buses to do what we can to improve bus numbers up and down the country.
Question put and agreed to.
Draft Merchant Shipping (Marine Equipment) (Amendment etc.) (EU Exit) Regulations 2019
Nusrat Ghani Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Merchant Shipping (Marine Equipment) (Amendment etc.) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Ms Buck, on this glorious February morning. Made under section 8 of the European Union (Withdrawal) Act 2018, the regulations correct deficiencies in the Merchant Shipping (Marine Equipment) Regulations 2016 and related legislation that arise from the UK’s withdrawal from the EU. “Marine equipment” is the collective term used to describe a ship’s safety and pollution prevention equipment. Examples include lifejackets, fire extinguishers and navigation lights. Marine equipment is regulated globally by the International Maritime Organisation under three international conventions.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I have served on many of these Committees—I will be on more, I would have thought, after yesterday’s events—and the fact is that we come in and every Minister stands up and gabbles right through as though the measure is not important. The rate of knots at which this Minister is speaking means that I cannot follow. Could she slow down and articulate better, so that we can all hear? I am not blaming the Minister; it is the procedure that has been adopted—gabbling through. Please do not gabble.
Ms Ghani
I apologise for my speed of speech; I would probably put that down to my passion for the subject. If the hon. Member for Huddersfield would like me to slow down and extend the sitting, I will do so. I hope that I can now be heard by the hon. Gentleman— I can project my voice more if he so wishes—and even by my own colleagues, if they are not yet awake.
The three international conventions require flag state administrations to ensure that marine equipment complies with safety requirements as regards design, construction and performance standards. The UK’s flag state administration for these purposes is the Maritime and Coastguard Agency. Historically, each EU maritime administration had its own systems for approving marine equipment, so the EU adopted legislation to harmonise the way in which EU member states implement International Maritime Organisation marine equipment requirements. That legislation allows member states to designate conformity assessment bodies to issue an EU-wide approval for marine equipment.
The MCA, on behalf of the Secretary of State, has designated 10 conformity assessment bodies for the EU. The MCA intends to convert those 10 bodies from EU notified bodies to UK approved bodies after the UK’s withdrawal from the EU. That will provide continuity in approval of marine equipment in the UK and ensure that the UK continues to meet its international obligations.
Mr Sheerman
We hear many Ministers telling us whom they have consulted. I chair the Transport Safety Commission, so I know a little about this area. The last time that I served on one of these Committees, it was about air safety, and I discovered that the Minister had met not one leader of note of an airline—a chairman or chief executive—and nor, he thought, had the Member of the House of Lords whom he said led on that territory. How many people in the industry—chairs and chief executives, even the ones who do not have any ships—has this Minister met?
Ms Ghani
I am grateful for the hon. Gentleman’s intervention, because it allows me to explain the number of organisations that I have indeed met. I chair an inter-ministerial group for maritime, which reflects not only the views of Maritime UK, the UK Chamber of Shipping and all the large maritime ports in our country but the views of shipowners. Regular meetings take place, across the country. Indeed, if the hon. Gentleman follows my Twitter feed, he will see all the meetings that I have had at ports with shipowners and with the organisations that represent these people.
Mr Sheerman
The Minister is very generous to give way again. I talk to the Yorkshire ports people, and they say that they have not met her. There will be tremendous stress on the regional ports, but they have not met her. Could we have a list of the people whom Ministers have actually met—the names and dates?
Ms Ghani
It is a fair offer.
The MCA regularly meets the 10 bodies—another bunch of meetings is reflected here—and it has kept them informed of the proposals, which they fully support. Similarly, the MCA regularly meets manufacturers of marine equipment and has received only positive feedback on the proposed regulations.
The regulations make changes that are essential to adapting the EU approval system to one that can function effectively as a UK system after exit. The regulations will allow ships to continue to use marine equipment that has been approved under the EU system. However, they also establish a new UK approval system, making simple changes that enable that system to work, for example by changing references to “member state” and “the Commission” to references to “Secretary of State” and “the United Kingdom”. The regulations establish a UK conformity mark for the UK system, and UK ships will carry equipment that bears either the EU’s wheel mark or that new UK mark.
The regulations also include important saving and transitional provisions. First, UK conformity assessment bodies that are, immediately before exit day, designated EU notified bodies will automatically be converted to UK approved bodies on and after exit day. Secondly, any application for conformity assessment lodged with a UK body before exit day for EU approval will be treated as an application for UK approval on and after exit day, so that a manufacturer will not need to make another application for conformity approval if it is not determined before exit day. Thirdly, existing conformity assessment certificates issued by EU notified bodies before exit day will be treated on and after exit day as if they had been issued by a UK approved body.
Importantly, and to clarify, the regulations do not change the design, construction and performance standards applicable to marine equipment, the methods for conformity assessment of that equipment, the requirements to become a designated conformity assessment body for that equipment, or the mechanisms for protecting the UK market against fraudulent or unsafe equipment. The only significant difference between the UK and EU approval systems is that the EU system requires a manufacturer established outside the EU to appoint an authorised representative in the EU and the UK system does not. An authorised representative fulfils responsibilities for the manufacturer in the EU—mainly those of retaining documents. The UK has made the appointment of an authorised representative voluntary to ensure that our system matures as quickly as possible. The EU took the same voluntary approach for nearly two decades to enable its system to mature.
Mr Sheerman
I have to say that the Minister is getting up her speed again. Does she agree that if something goes wrong in shipping after Brexit—if there is a cataclysmic collision or sinking and oil pollutes half of the coastal area of Britain—it will be a terrible environmental and human tragedy? Is she telling me that there has been no risk assessment of the transition and the equipment, which is so sensitive? Or is she telling me that a risk assessment by her highly paid officials has come to the conclusion that there is no risk?
Ms Ghani
The hon. Gentleman conflates many different scenarios. The MCA already undertakes work. All we are suggesting through the statutory instrument is that it will continue to do that, but it will work with UK bodies, as working with EU bodies will no longer be appropriate once we exit the EU. The MCA and the marine accident investigation branch are of world standard in their dealings with issues that arise on our waters.
The MCA has other mechanisms through which to obtain the same documents, either directly from the manufacturer or from the relevant approved body.
Ms Ghani
I will continue to conclude. Along with merchant shipping notice 1874, the regulations are supported by two user-friendly marine guidance notes on marine equipment market surveillance and procedures for designating UK approved bodies, and a plain English marine information note for industry stakeholders.
Ms Ghani
As has been noted, the regulations will ensure continuity on EU exit for UK conformity assessment bodies and manufacturers wishing to gain access to the UK market. They make no changes to how conformity assessment bodies conduct conformity assessment activities or to the underpinning standards that marine equipment must meet before it is accepted on the UK market or placed on board UK ships. Therefore, the assumption that standards are somehow being lowered is incorrect. The standards will continue to be kept as we leave the EU.
Toby Perkins (Chesterfield) (Lab)
I am grateful for the Minister’s reassurance. As regulations change in the EU after we have left, will we keep pace with those regulations or will we have to change our regulations off our own bat, alongside whatever the EU does?
Ms Ghani
The hon. Gentleman makes an important point. He will know that it is not just the EU that guides maritime. Maritime is a global sector, and the IMO, which has the highest standards, is just across the river from us. We are part of the high ambition coalition, so as a country we are a driving force on maritime regulations and standards. Given that we lead that group and are trying to bring the rest of the world up to our high standards, it would not make sense at any point to lower standards.
In response to another point about the reduction in standards, I mentioned in my opening statement that the regulations retain the existing international standards that apply to marine equipment. They in no way undermine, devalue or reduce standards, and I find it peculiar that the hon. Member for Huddersfield, who made a number of interventions, assumes that the act of Brexit alone will create a dire situation on our waters. I think he should come to terms with what we are trying to do.
Ms Ghani
I will just go a little bit further, thank you.
The hon. Member for Kingston upon Hull East asked whether the bodies had changed since 2018. The answer is no. He asked why MSN 1874 had not been published. MSN 1874 Amendment 3 was put to the House for sifting and will be published by the MCA on commencement. I will write to the hon. Gentleman to make him aware of the timeline.
Ms Ghani
The hon. Gentleman has got out of bed on the wrong side this morning. The IMO is indeed across the way, and the secretary-general and I meet regularly on a number of issues. This morning seems to be turning into a discussion about whether we should or should not be leaving the EU, but that decision has been made and this morning we are ensuring that standards continue.
Mr Mark Harper (Forest of Dean) (Con)
The Minister, as ever, is covering the regulations comprehensively. I have listened carefully to what the hon. Member for Huddersfield said about changes to the safety standards. My reading of the regulations is that they simply make sure that the existing standards and rules operate when we leave the EU. No one is changing or lowering safety standards. The hon. Gentleman says that he wants to scrutinise the regulations, but perhaps if he read them before asking his questions we would all be better informed.
Ms Ghani
It continues to be a glorious morning, as we can see by the amount of interventions that are being made. The regulations do indeed bring on board standards. We are one of the leading countries, helping the IMO to deliver even higher standards, and the hon. Gentleman will be pleased to know that ILO 188, which raises standards for seafarers and fishermen, was delivered by this country this year. We were the first country to deliver that ILO standard. Once again, the UK is the leading champion for our maritime sector.
The regulations make only necessary changes to adapt a system for marine equipment conformity assessments that was designed on behalf of the EU member states into a UK system. With your permission, Ms Buck, I commend the regulations.
Mr Sheerman
On a point of order, Ms Buck. The fact of the matter is that we are racing through this. There is almost resentment on the Government Benches; a feeling that we have to get through this, get out and get on with our day job. Our job as an Opposition is scrutiny, and I am not able as a Member of Parliament in this Committee to scrutinise the regulations sufficiently.
The Chair
Order. That is not a legitimate point of order. It was for the hon. Gentleman to make a speech if he wanted. We will move on. Has the Minister concluded her remarks?
Transport for Towns
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
It is a pleasure to serve under your chairmanship, Mr Austin.
I congratulate the right hon. Member for Don Valley (Caroline Flint) on securing the debate. There has been a wide-ranging discussion this afternoon. I am pleased to note that this debate was not just about a particular journey from A to B but about how transport can regenerate our communities and bind them together. This afternoon, we have all discussed the fact that transport is essential for opportunity, growth and the wellbeing of the whole nation, including the towns that represent the living souls of the UK.
My right hon. Friend the Secretary of State for Transport has set local transport as a key priority for the Department for Transport, recognising its vital role in achieving a prosperous and well balanced society. However, as has been noted this afternoon, most people say, if they are asked, that they just want their transport system to be local, convenient, clean, reliable and safe. They want to have less congested roads and better air quality. My Department is delivering on those expectations, but of course there is always more to do, and transport is a key driver for social and economic change.
I was pleased to note that the right hon. Lady spoke about technology. The 21st century is seeing rapid shifts in mobility, with the adoption of broader and more sustainable approaches. Social and economic trends are also changing people’s behaviour and attitudes. The digital revolution, the growing awareness about smart places, and the greater emphasis on sustainability and environmentally friendly ways to travel create new transport challenges and opportunities.
I would be pleased to respond to the right hon. Lady on the transport in towns conversation and the rebuilding Britain fund, but most hon. Members raised the issue of buses, so I will discuss them first. As I come fresh from the Select Committee on Transport session last week on buses, I hope that hon. Members will note that I am a particular advocate for them.
The right hon. Lady mentioned a quote from Bristol, is that correct?
Ms Ghani
I was just trying to find out the statistics for Bristol. The Member, or the resident, was obviously disturbed about how or when they could catch a bus, but if that Member was still around, the right hon. Lady could point out to them that 50% more people are using buses in Bristol compared with in 2009-10, as I saw on a visit last weekend.
No matter what happens with technology or how people change the way they want to travel, buses will still play a key part. More than 4 billion journeys take place on our buses and those who use buses have the highest satisfaction compared with all other modes of transport. Buses will continue to play a huge role in our transport system. They connect our communities to the workplace and to vital public services such as healthcare and education. They are the quickest and most effective way to deal with people’s desire to get to work and school.
Most importantly, the Bus Services Act 2017 gave local authorities the option to manage those relationships even better, including new and improved options to allow transport authorities to enter into partnerships with their local bus operators. As was noted by many hon. Members, Mayors have additional franchising powers, too.
I was interested to note which hon. Members’ constituencies were in mayoral authorities. The hon. Member for Heywood and Middleton (Liz McInnes) mentioned that her local authority was waiting for an update in the regulations, but those regulations are already in place under the 2017 Act. Her local authority just needs to contact the Department and it will have the opportunity to enter into a voluntary or statutory relationship.
Ms Ghani
The hon. Lady shakes her head. If she wishes to get in touch with the Department, we can lay out how the plans can work for her local authority so it can take the relationship forward.
I believe the constituency of the hon. Member for Barnsley East (Stephanie Peacock) sits under the mayoral authority of the hon. Member for Barnsley Central (Dan Jarvis). Through the powers in the 2017 Act, the Mayor has the opportunity to franchise bus services. I had that conversation with him in person when he met me about HS2.
The hon. Lady was also keen to make sure that the right investment was made in the rail network in her region. About £48 billion of rail investment is projected between 2019 and 2024. There has also been a substantial amount of infrastructure funding—about £300 million—to help with HS2.
The hon. Member for Stoke-on-Trent Central (Gareth Snell) was keen to understand how the 2017 Act could help his local authority. Local authorities can have a voluntary or statutory partnership with their bus companies. They just need to get in touch with the Department. We would welcome any interaction, because we are always delighted to enable local authorities to take that forward.
Gareth Snell
Having read the 2017 Act, I am acutely aware of what possibilities exist in it, but my specific question to the Minister is how many local authorities have taken up those powers outside mayoral combined authority areas. Simply having something on paper does not mean that local authorities are doing it. Can she give me a figure today of how many local authorities have taken up the powers that she references?
Ms Ghani
The hon. Gentleman raises a valuable point. Previously, the argument was that the powers were not available. The Department made those powers available in 2017—they have been in place for only a few years—and we are in conversation with a number of local authorities and Mayors. We need local authorities to put business cases together, come forward and be bold and responsible for the bus services that they should be making available to their local communities. The hon. Gentleman might also have noted his area has been shortlisted for a slice of the £1.28 billion transforming cities fund. I know that is a city and we are talking about towns, but we can ensure that buses are central to how that fund is allocated.
Tracy Brabin
Does the Minister accept that communities such as Kirklees, where we have had a 60% cut to our council funding since 2010 and where, since One Yorkshire has been kicked back, we cannot currently get a Mayor, are in a perfect storm where bus services are stagnating?
Ms Ghani
These are the choices that local authorities are making. They need to be aware that if they make changes to buses, they do more than just remove a mobility service; they affect people’s opportunities to access health, education and jobs. We all talk about devolution, but if we are going to talk about devolving these powers so that local authorities are responsible and in charge, they need to think about the impact of the choices they make on the communities they represent. The hon. Lady will be pleased to know that there should be more funding available for buses in her area, because West Yorkshire has also been shortlisted for a share of the £1.28 billion transforming cities fund. I am sure that she—
Ms Ghani
I agree, but buses and towns will also play a part in that fund. Most of us have spoken about buses. We all have a role in ensuring that buses are part of that project and that, when local communities put in plans to transform transport, buses are not seen as something to add on at the very end.
One of the issues raised was how people can access buses and get information about what tickets are available and when services are running. The 2017 Act puts in place bus open data. That will require bus services to make public information about timetables, fares and tickets, which at the moment are not that easy to understand, in real time so passengers can make decisions about how and when to get the bus. That information will be available from 2020. Those improvements aim to remove uncertainty about bus journeys, improve journey planning and help passengers secure the best value for money for their tickets.
The hon. Member for Batley and Spen was absolutely right to say that buses are the greenest option. That is why we recently announced a further £48 million for low emission buses, which means that catching a bus is also environmentally friendly. I believe there is also a discussion to be had about how buses are a way for people to communicate with each other. A huge amount of work was done on tackling loneliness on the back of the Jo Cox Commission on Loneliness. Once again, buses were seen as a service that some people take up just to have a conversation. I therefore urge all Members present to work with me to ensure that their local authorities understand how important bus services are.
I will touch on taxis for just a moment, because they are a key service in our towns. We recently responded to the taxi and private hire vehicle task and finish group, which put together proposals for ensuring that taxi and private hire vehicle passengers continue to be secure, on the back of the cases in Rotherham and Oxford. Only a few weeks ago, we announced that we will raise the basic threshold for drivers to secure a licence and will have a national database and national enforcement policies.
I was going to talk about walking and cycling, but I seem to have run out of time. I wanted to end with what the right hon. Member for Don Valley said about having a towns conversation and ensuring that we have a transport fund and strategy by touching on the future high streets fund and the transforming cities fund, but I believe she wants to respond, so I have run out of time—forgive me.
Flybmi
Nusrat Ghani Excerpts(5 years, 9 months ago)
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Andy McDonald (Middlesbrough) (Lab)(Urgent Question)
To ask the Secretary of State for Transport to make a statement on airline Flybmi going into administration.
The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
On 16 February British Midland Regional Limited, the east midlands-based airline which operates as Flybmi, announced that it had ceased operations from that date and filed for administration. The group has surrendered its licence to operate in the United Kingdom, which means that it is no longer able to operate flights.
There has already been significant speculation about the reasons behind Flybmi’s failure. Ultimately, this was a commercial matter for the airline. Flybmi operated in a very competitive industry and was exposed to wider pressures faced by the global aviation industry, such as increasing fuel prices. It is very disappointing that it has gone into administration, and we know that this will be a very difficult time for those who have lost their jobs as a result. Many of those affected are highly skilled. We are confident that they will find suitable employment opportunities, and we welcome the moves by the sector to offer such opportunities.
The Insolvency Service’s redundancy payments service is working with the administrators of Flybmi to ensure that former employees’ claims from the national insurance fund, which may include redundancy pay, holiday pay, arrears of pay and compensatory notice pay, are assessed as quickly as possible. However, given that the sector is ready to recruit, I hope that new jobs will be found soon.
I also recognise that this is a disruptive and distressing time for passengers, and the Government’s immediate priority is fully focused on supporting those affected. We are in active contact with airports, airlines and other transport providers to ensure that everything possible is being done to help them. We and the Civil Aviation Authority are working closely with the travel industry to ensure that the situation is managed with minimal impact to passengers.
There are enough spaces on other flights for passengers to return home on other airlines, and we welcome the sector’s move to offer rescue fares for affected passengers. For example, Flybmi has codeshares across the Lufthansa group and passengers on these flights will be subject to the EU passenger protection rules. They will be provided with assistance and rerouted to their final destination. Travel insurance and credit card bookings are worth noting here, and most passengers were business travellers so will be covered through their work. In addition, the Civil Aviation Authority is providing detailed information for affected passengers on its website, including how people can claim back money they have spent on tickets.
The Government recognise the importance of maintaining regional connectivity, which is why we fund a public service obligation route from Derry/Londonderry to London, which was recently extended from 1 April 2019 for a further two years, the norm for PSOs. The chief executive of Derry council has the power to transfer the PSO contract to another airline for up to seven months to allow for a new procurement process to be conducted. Subject to due diligence we expect the council to sign contracts and appoint an airline later this week, and we expect services to resume swiftly. Derry City and Strabane Council takes forward that part; it is its responsibility.
All affected regional airports have been contacted, and while they are disappointed, we are confident that this will not cause them significant issues. A number of airlines have already indicated that they will step in to replace routes previously served by Flybmi. For example, Loganair has publicly announced that it will cover routes from Aberdeen, Bristol and Newcastle. Our priority is to protect employees, passengers and local economies. We are fully focused on supporting those affected and remain in close contact with the industry and the CAA to ensure that everything possible is done to assist.
Andy McDonald
It will not have escaped anybody’s attention that the Transport Secretary is sitting on the Treasury Bench yet has not come to this House to make a statement. He seeks to hide behind his Minister; she has been dropped in it. Perhaps he has been dealing with the bombshell dropped by Honda this morning.
Eighteen months ago Monarch Airlines left taxpayers with a bill for more than £60 million. Clearly the Government have failed to learn the lessons from that disaster. In fact, the Transport Secretary has dithered and delayed for nearly a year, allowing Loganair to cherry-pick the profitable parts of Flybmi before putting it into administration. The Government have clearly done nothing to stop a repeat of Greybull’s asset-stripping of Monarch.
Flybmi has been in difficulty for some time, so what plans did the Department for Transport have for an airline’s collapse? Have not the Government left both Flybmi’s passengers and staff high and dry? Why was the airline allowed to sell tickets only hours before administration? Why are the Government not helping people get home this time?
On Thursday last week, the Government agreed to extend the subsidy for Flybmi’s London to Derry route. Was the DfT aware that the airline was about to collapse when it agreed this commitment of public money? What checks did Ministers do on the airline prior to agreeing this? The Government’s aviation Green Paper boasts of growth and connectivity; in reality, Flybmi is the second UK airline to fail within months, while the UK’s direct connectivity has declined.
The Government’s complacency is staggering. Flybmi has said that
“the challenges, particularly those created by Brexit, have proven to be insurmountable”,
and:
“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around Flybmi’s ability to continue flying between destinations in Europe.”
So when will this Government wake up to the undeniable truth that their shambolic handling of Brexit is leading our country into an economic disaster?
Ms Ghani
I have never been a woman who has been “dropped in it”; it is my job and I am disappointed that the shadow Transport Secretary wanted to see a he and not a she at the Dispatch Box, but hopefully I can respond to his questions in the best way I can. I am also a little disappointed that the shadow Front-Bench team are all in their seats today considering the bold decisions their colleagues have taken to leave the Labour party because of a number of issues, including leadership and institutionalised antisemitism. We are talking about disappointment, but we should focus on the passengers.
We were made aware of Flybmi going into administration at the weekend. A number of conversations have been taking place. The Aviation Minister has spoken to the Cabinet Secretary responsible for transport in Scotland.
The Secretary of State has spoken to the Northern Ireland Secretary and to the local MP, the hon. Member for East Londonderry (Mr Campbell). Information is being made available on the Civil Aviation Authority website to alert passengers about how they can get home. We must focus on the passengers who may be struggling to get home, but there are lots of alternative flights and that information is being made available. More than 300 staff have been impacted, but it is interesting to note that Loganair and Ryanair are making jobs available and recruiting heavily. The British Airline Pilots Association is also exploring options for pilots with partner airlines.
The hon. Gentleman noted the business case for Flybmi. It was possible to recognise, looking at its accounts, that it had been struggling for a while, including before Brexit and before the referendum. It is not an easy market for airlines to be in, especially regional and local airlines. He mentioned Brexit as a reason for Flybmi going into administration, but it is important to note that several other smaller airlines in Europe have also gone into administration, including Germania, VLM, Cobalt and Primera, and there are lots of different reasons why this takes place. We cannot always blame Brexit when we do not understand the business case.
The hon. Gentleman mentioned the public service obligation and wanted to put the blame at the door of the Department for Transport. In case I did not make myself clear in my opening statement, Derry and Strabane Council is responsible for maintaining and managing the contract. We of course support the route via the public service obligation because it is a lifeline route. I know that that reply must come as a disappointment to him, but that is where the responsibility lies. Derry and Strabane Council has made it clear to the press and to us that it is very positive that an alternative airline will be in place soon enough. It is important to note that the aviation sector in the UK is thriving and that passenger numbers have gone up by almost 60% compared with the numbers in 2000, but it is a very tricky sector to be in, especially for the small regional players in this very large market. I hope that those responses will not be too disappointing for the hon. Gentleman.
John Redwood (Wokingham) (Con)
Is there any known interest from other aviation companies or entrepreneurs in buying assets and taking over the staff in greater numbers, rather than in just cherry-picking the routes?
Ms Ghani
My right hon. Friend makes an important point. The staff are all highly skilled and very professional, and it is important to note that Loganair has already made it clear that it is keen to recruit. I also believe that Ryanair has set up a stall in some of the regional airports to try to bring some of those professional staff on board. We are very positive that they will be able to secure jobs, although this must be a very distressing time for them, as it must be for the passengers. A number of airlines are showing interest in the routes, and Derry Council has made it clear to us that it has some interested parties lined up to take on the route from Derry airport. It will make that information public as soon as it can.
Kirsty Blackman (Aberdeen North) (SNP)
Our thoughts at this time are with the staff, whose future is uncertain, and with those who have had their travel plans thrown into disarray, who are out of pocket or who are stranded as a result of the collapse of Flybmi. I am pleased that Loganair has announced that it is stepping in to cover the routes from Aberdeen to Bristol, Oslo and Esbjerg from 4 March. At a time when Aberdeen is feeling the impact of the loss of easyJet flights, the news of Flybmi going into administration is deeply worrying, particularly because it explicitly mentioned Brexit uncertainty as one of the reasons for this happening. Recent studies have shown that Aberdeen is set to be the UK city that will be the hardest hit by Brexit. It would be helpful if the Minister told us what the Government are doing to protect slots at Aberdeen and other regional airports after Brexit and what they are doing to ensure that airlines are encouraged to use those slots and that our regional airports have access not only to hub airports but to destinations.
Ms Ghani
The hon. Lady makes some important points, focusing on passengers and ensuring that they can continue their journeys and on the staff involved. One of Flybmi’s issues was that its flights were not always full, but the number of people who could have been impacted has been reduced as result. However, everyone whose journey home or to work has become difficult must be taken care of, and I ask them to pay attention to the CAA website for further information. Flybmi’s business model was just no longer working in a competitive market. Its public accounts show that it was in trouble before the referendum, so putting the blame on Brexit really does not wash. The hon. Lady makes a powerful point about Aberdeen, and we will do what we can to ensure that we support all our regional airports.
Andrew Bridgen (North West Leicestershire) (Con)
While the failure of Flybmi’s business model and the loss of 100 jobs in my constituency is a setback causing obvious distress for employees and disruption for passengers, it comes at a time of considerable growth and development in and around East Midlands airport, with over 7,000 new jobs being created over the next two years. Will the Government do all they can to ensure that Flybmi’s highly skilled employees are returned to employment as soon as possible, just as they did in 2012 when Flybmi’s parent company, British Midland, ceased trading with the loss of 1,100 jobs in my constituency?
Ms Ghani
My hon. Friend is a powerful advocate for his constituency and makes some valid points, particularly about the loss of skilled jobs. We were only made aware that Flybmi was going into administration over the weekend, and it is interesting to note the number of other airlines that have nipped in to see who they can recruit. I am confident that jobs will be found. My hon. Friend refers to passengers. The UK has a healthy aviation sector, and we must not dwell on undermining it. We had 284 million terminal passengers in 2017—an increase of 6% on 2016—so the market is healthy.
Paula Sherriff (Dewsbury) (Lab)
The Government have been consulting on arrangements for airline insolvencies for almost a year, so will the Minister explain how yet another UK airline can fail without the Government taking any action? Can I press the Minister to explain why the airline continued to sell tickets just hours before going into administration?
Ms Ghani
An independent review of airline insolvency by Peter Bucks is due to report, and it will make clear what happens to airlines when difficult decisions are made. There is an interesting point to note about how airlines can continue to sell tickets when they are struggling, which is one of the peculiar things that happens in the sector. If an airline were to stop selling tickets, that would make it clear that it was about to go into administration, so airlines do keep selling tickets quite close to the point at which they are about to go into administration. The Peter Bucks review will no doubt examine that point.
Dr Andrew Murrison (South West Wiltshire) (Con)
I welcome the Minister’s restated commitment to the PSO in relation to Derry and Stansted. Given this latest news, what further assessment is necessary of the long-term viability of Derry airport and of the welcome improvements to the A6 between Londonderry and Dungiven, which will increase connectivity to Belfast International airport? What further support does the Minister anticipate in the light of the Derry City and Strabane regional city deal?
Ms Ghani
It is good that my hon. Friend notes the importance of Derry City and Strabane District Council’s role in procuring and maintaining the contract, and it is interesting to note the council’s positivity about other airlines taking on the route. I noted over the weekend that Ryanair was offering flights for less than £10 for those who wished to travel from Belfast, although that means making another journey. We are obviously committed to supporting our regional airports, to holding the CAA to account so that it monitors what airlines are doing when they are struggling and to examining what we can do to help passengers to continue their journeys across the UK.
Mr Clive Betts (Sheffield South East) (Lab)
It is quite frankly astonishing that the Minister did not mention Brexit in her initial comments, because the company certainly did. Flybmi said that uncertainty around Brexit and the possible costs of needing both UK and EU licences in the event of a no-deal Brexit were factors in its decision to go out of business. Will the Minister now make it clear whether all airlines should be planning for a no-deal scenario and looking at how to get dual licences?
Ms Ghani
The EU has been very clear that the UK aviation industry can continue as it is. We have been having good conversations with the EU on this, and we have tabled a number of statutory instruments and regulations to make sure we can continue flying. I just do not buy the argument that planes will not fly.
Colin Clark (Gordon) (Con)
As the Minister mentioned, Loganair has picked up many of the routes from Aberdeen International and is owned by the same holding company as Flybmi, Airline Investments. Will she join me in encouraging Airline Investments to give regional flights priority at this time? Will she reaffirm her commitment to regional airports? And will she make sure the slots are not reassigned to other routes, so keeping these vital regional routes open?
Tom Brake (Carshalton and Wallington) (LD)
This is clearly very bad news for staff and passengers. I know the Minister does not like mentioning the B-word—Brexit—but the fact is that Flybmi has said that Brexit uncertainty was a factor. Not the total reason but a factor, as it was for Jaguar Land Rover, Ford and, as we will no doubt find out shortly, Honda. Is it not time for the Prime Minister to do two things: one, rule out no deal; and, two, establish a Brexit redundancy fund to support businesses that have been put out of business as a result of Brexit?
Kirstene Hair (Angus) (Con)
It is welcome news that Loganair is taking on some of Flybmi’s routes, but my constituents want assurances on their new nearest airport in Dundee. We do not want to see the airport taking on other routes and losing the vital routes from Dundee down to London.
Ian C. Lucas (Wrexham) (Lab)
Aerospace is one of the most important and successful of our sectors. Although the Minister may be having lots of good conversations with our friends in the European Union, there is no regulatory certainty. Does she think that is a good thing or a bad thing for our aerospace industry?
Mr Speaker
Order. The Minister is answering the question and there is quite a lot of sedentary chuntering on both sides, and no shortage of gesticulation, either. I am sure that Mr Knight will now behave with his usual statesmanlike reserve.
Julian Knight (Solihull) (Con)
Thank you, Mr Speaker. The Minister is clearly deeply concerned about this collapse and the wider issues affecting aviation across Europe. Will she assure the House that she will do everything she can to support our regional airports— Birmingham airport, despite its successes, is running at 35% capacity—because they are so important to our country and our regional economic diversity?
Ms Ghani
My hon. Friend has my assurance, and I would be at fault if I did not mention Birmingham airport, which I grew up very close to and to which we are obviously committed, as he can no doubt tell by our commitment to High Speed 2 stopping at the airport. We are committed to all our regional airports, which is why we have the “Aviation 2050” consultation under way to make sure we do all we can to ensure the sector continues to remain healthy.
Mike Kane (Wythenshawe and Sale East) (Lab)
In the event of a no-deal Brexit, there could be no expansion of airline routes from the UK to the EU. That is what is causing the huge uncertainty for operators in the UK. After two and a half years of negotiation, can the Minister not see the damage being done to the sector?
Ms Ghani
I believe the hon. Gentleman is mistaken, as we are working with the EU to deal with deal and no-deal scenarios: we have published no-deal technical notices; we have tabled a number of statutory instruments, which are progressing well; and the EU has confirmed that it will maintain the connection between the EU and the UK to allow flying to continue. But if he is concerned about a no-deal scenario, he should vote for the Prime Minister’s deal.
John Howell (Henley) (Con)
The collapse of Flybmi is to be very much regretted, but does the Minister accept that connectivity is about more than one airline and that she should continue to establish growth in airlines across the country?
Ms Ghani
Absolutely. Even though the airline sector is a tricky market to be in and it obviously favours larger airlines—for example, it is a little easier for them to buy fuel than it is for smaller airlines—my hon. Friend is right to say that competition is good and we should do what we can to support not only our airports, but our regional airlines.
Jim Shannon (Strangford) (DUP)
My hon. Friend the Member for East Londonderry (Mr Campbell) was in touch with the Minister to seek reassurances about this. Flybmi has said that its decision is predominantly an economic one; it was averaging only 19 people per flight, which is not sustainable for any company or business. The public service obligation air route, the first of its kind in Northern Ireland, has been in place since 2017, and the Minister has referred to it. I am thankful for the assurance that the Government will continue to subsidise the route until 2021. Will she please outline whether provision will be made to expand that commitment for a further two years beyond that to encourage other airlines to take on the contract and the route?
Ms Ghani
The hon. Gentleman makes an important point about the PSO, but it does run for this specific period, up to 2021. He noted that the Secretary of State has spoken to the local MP, the hon. Member for East Londonderry, and made a valuable point about the number of passengers per flight, which would have had an impact on the airline’s business model.
Henry Smith (Crawley) (Con)
Of course Brexit has been blamed for other ills. Will my hon. Friend confirm that in the three years leading up to the Brexit referendum in 2016, Flybmi was losing more than £25 million and that its failure has more to do with fuel costs, European regulation and market forces?
Ms Ghani
My hon. Friend makes a valuable point. If we look at Flybmi’s accounts, we see that they were not healthy for many years, even before the referendum. Smaller airlines across Europe are also struggling, and I mentioned some earlier: VLM in Belgium, Germania, Cobalt and Primera. So this is not a UK thing; it is tricky for small airlines to operate, especially if they are regional, in a global sector.
Kevin Hollinrake (Thirsk and Malton) (Con)
If I was the chief executive of a recently failed business, I would probably blame Brexit, too, but the reality is that Ryanair warned only last month of significant overcapacity in the budget airlines sector. Does my hon. Friend agree that this is far more about competitive markets than it is about Brexit?
Ms Ghani
Absolutely. The reason for Flybmi going into administration is that the business has just reached the end of its road. We have an overcapacity here and the power is with the passengers in the choices they make. Those passengers who are now struggling to get home and in distress must be recognised as well, but that is the market we are in.
Nigel Huddleston (Mid Worcestershire) (Con)
I thank the Minister for her statement and the reassurances she has given those who are directly impacted. Does she agree that the UK aviation industry is actually a success story? We have the third largest aviation sector in the world and we would like that to continue to be the case. Will she therefore assure me that she and her Department are working with the industry to make sure that it is planning effectively for all Brexit scenarios? Perhaps the Opposition would like to help out on this by reducing uncertainty by voting for the deal.
Ms Ghani
My hon. Friend makes a valuable point. People who are nervous about uncertainty need to vote for certainty, which would be the Prime Minister’s deal. We should not undermine the UK aviation sector. It is incredibly healthy, even though there are a number of challenges, especially in respect of how passenger numbers are going up. Interestingly, there is far more capacity than there are passengers, so shopping around for a good deal is important. What has come out of Flybmi going into administration over the weekend is that we should remember to make sure we are securing our tickets in a way that means they are insured, so that we can get compensation or refunds.
Mr Philip Hollobone (Kettering) (Con)
Flybmi’s 50-seater planes carried, on average, only 18 passengers per flight. No airline could carry on on that basis. Although Flybmi’s demise is regrettable and very sad, does the Minister agree that it is important to get it into context? East Midlands airport is a huge success story. It has an expansion programme, and passenger and cargo growth is 8% a year. The airport is located in north-west Leicestershire, which has the fastest economic growth of anywhere outside London and the south-east.
Ms Ghani
My hon. Friend makes a powerful point about his part of the world. He is absolutely right; East Midlands airport is thriving, competitive and nimble when it comes to the changes that passengers require and the kinds of services that they want. Even though it is regrettable that Flybmi went into administration over the weekend, it is important to note that the UK has a very healthy aviation sector.
Second Additional Provision to the High Speed Rail (West Midlands – Crewe) Bill
Nusrat Ghani Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I would like to inform the House about the introduction of a second additional provision to the High Speed Rail (West Midlands - Crewe) Bill, which is currently before a Select Committee.
As part of this Government’s industrial strategy we are investing in High Speed 2, a transformational infrastructure project that will improve people’s journeys, create jobs, generate economic growth and help to rebalance our country’s economy. HS2 is more than a railway and the project’s vision is to be a catalyst for economic growth. It has cross-party support and support from councils, local enterprise partnerships, metro Mayors and businesses who can see the transformational potential.
HS2 is making progress and the benefits are already being seen in towns and cities in advance of HS2 services. Around 2,000 businesses have been awarded HS2 contracts and over 7,000 jobs have been supported, a figure that will increase to around 30,000 at peak.
The additional provision proposes a number of changes to the powers in the Bill for the Select Committee’s consideration. These changes have arisen as a result of requests from petitioners, directions from the Select Committee currently considering the Bill, and further design development, principally in relation to utility works. Those directly and specially affected by these changes may petition against them, and once any petitioners have been heard, the Committee will decide whether the amendments to the Bill should be made. The main changes in the additional provision are as follows:
The lowering of the viaduct at Kings Bromley which reduces environmental effects such as visual impact;
a revised and more simple Handsacre junction layout, where phase one connects to the west coast main line;
a new traction power connection, requiring over 7 km of high voltage electricity lines, from the HS2 line at Newlands Lane to the east of the route. This change ensures the necessary resilience and redundancy required for traction power on a high-speed railway;
temporary and permanent power supply routes to the Whitmore and Madeley tunnels, to support the operation of the tunnel boring machines during construction and later, the operation of the tunnels;
a southward extension of the southern end of the tunnel at Whitmore, to avoid the need for complex surface works where the A53 crosses the route; and
works at and around Crewe station including the extension of platform 5 to accommodate 400-metre HS2 trains. These changes support the realisation of the Crewe hub vision.
The additional provision also includes works and powers related to utilities following detailed discussion with utility companies. Other changes relate to highway safety and capacity improvements.
All of these changes require additional land to be acquired, and/or works to be carried out. In some cases land now affected is at some distance from the line of route. Full details are shown in the plans and sections deposited alongside the additional provision. Affected landowners will receive notification this week, including information on how to petition against the changes, should they decide to do so.
The following amendments are also included in this additional provision:
An insertion to allow easements over land to be for the benefit of a third party (i.e. utility companies) rather than for the benefit of the Secretary of State;
dis-application of some sections of the Building Act 1984 in relation to demolitions which are already otherwise authorised by the Bill; and
increasing the controls on the nominated undertaker in relation to low-volume lorry movements.
I am also publishing an environmental statement setting out the significant effects and mitigation from the changes in the additional provision, alongside a supplementary environmental statement reporting new environmental information relating to the scheme. In accordance with Standing Orders, there is a public consultation on these documents which will run until 29 March 2019. The documents will be put in the Public Bill Office of the House, and will also be made available in locations open to the public in all local authorities and parishes affected by the changes.
In October 2018, I committed to updating the House regularly on the progress of HS2. I intend to make further statements to this House to update colleagues on HS2’s progress during the course of 2019.
[HCWS1324]
Taxi and Private Hire Vehicle Licensing
Nusrat Ghani Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I am today announcing to the House the launching of a consultation on statutory guidance to be issued to taxi and private hire vehicle (PHV) licensing authorities and that the Government have issued their response to the report of the task and finish group on taxi and private hire vehicle licensing.
The draft statutory guidance proposes a range of robust measures to protect taxi and PHV passengers, particularly those most vulnerable. Government and licensing authorities must work together to ensure that, above all else, the taxi and PHV services the public use are safe. The consultation on this guidance will run until 22 April 2019.
The taxi and PHV trade has experienced significant and rapid changes in recent years which have brought with them benefits but have exacerbated concerns over the existing structure of the industry and the environment in which it operates. In particular, many of these changes have highlighted inconsistencies in the licensing standards, and in the rigour with which these standards are applied by some licensing authorities.
The recommendations proposed in the draft statutory guidance are a result of extensive consultation, and in particular learning from the best practice of exemplary licensing authorities. Consulting on statutory guidance is an important first step to reforming the way the taxi and PHV sector is regulated.
In addition to the statutory guidance consultation, the Government are today publishing their response to the report of the chair of the task and finish group. The Government have set out their plans to introduce legislation and bring forward the urgent reforms necessary. I would like to take this opportunity to thank the Chair, Professor Mohammed Abdel-Haq, for his report, and the members of the group for their dedication in considering the issues facing the trade and their potential remedies.
The Government will, when time allows, bring forward legislation to introduce national minimum standards for taxi and PHV licensing, reinforcing the consistently high standards that the statutory guidance will bring to the sector. To ensure that drivers are under the same level of scrutiny when operating away from their licensing area we will legislate to enable enforcement and compliance checks to be conducted by any licensing officer against any vehicle regardless of where they have been licensed. Where drivers or vehicles fail to meet the national minimum standards, they will be able to take appropriate action to protect the public. Underpinning these measures will be the introduction of a national licensing database to assist the sharing of relevant information between licensing authorities and other bodies necessary to ensure that all those in the trade are “fit and proper” and warrant the trust that is placed in them by the public. This database will build on the work of the Local Government Association and the National Anti-Fraud Network in establishing the national register of revocation and refusals.
Taxis and PHVs provide a vital community service which is used by many people; helping them get to the shops, see their friends, or go to work or school. We will work with the trade, drivers and regulators as well as passenger groups to meet the challenges the sector is expected to face in the future and ensure that change is not at the expense of a safe and well-functioning market. This work is already under way through the future of mobility grand challenge and the Law Commission’s consideration on enabling autonomous vehicles. I would encourage all to engage on these issues and help shape a successful sector that all can be proud of.
[HCWS1323]
HS2 Construction Partner: Southern Stations
Nusrat Ghani Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I would like to update the House on the progress of High Speed 2.
As part of this Government’s industrial strategy we are investing in High Speed 2, a transformational infrastructure project that will improve people’s journeys, create jobs, generate economic growth and help to rebalance our country’s economy. HS2 is more than a railway and the project’s vision is to be a catalyst for economic growth. It has cross-party support and support from councils, LEPs, metro Mayors and businesses who can see the transformational potential.
HS2 is making progress and the benefits are already being seen, notably in the investment and job creation in the west midlands in advance of HS2 services, and around 7,000 jobs have been supported so far, rising to around 30,000 at peak.
Parliament has approved the powers to proceed with phase 1 of the railway, between London and the west midlands, and we are making significant progress. Early works are well under way: HS2 Ltd has revealed the designs for new stations in Old Oak Common, Birmingham Interchange and Birmingham Curzon Street; enabling works on the route are progressing; decommissioning and preparatory works are taking place.
As has been seen with Stratford station in east London, railway stations have enormous power to transform their local surroundings. It is why I approved the appointment of a master development partner (Lendlease) on 22 February 2018 to assist HS2 Ltd in delivering the new Euston station development. This will not only provide unparalleled levels of accessibility, ease and convenience for our passengers, but ensure work with local communities to help unlock wider regeneration, new jobs, homes and opportunities.
Last year, the tender shortlist for a construction partner for the two southern stations was released. In a clear signal of how work is progressing, this morning I am pleased to announce the intention to award these important positions to a joint venture between Mace Ltd and Dragados S.A. for Euston and a joint venture between Balfour Beatty Group Ltd, VINCI Construction UK Ltd, VINCI Construction Grands Projets SAS and SYSTRA Ltd for Old Oak Common. They will bring their global construction management expertise to these vitally important pieces of national infrastructure.
This demonstrates how progress is continuing at pace in order to deliver stations that will be embraced by their local communities, drive economic growth and improve rail journeys for passengers, while at the same time delivering this phase of the project to schedule and cost.
The progress we are making with HS2 is clear evidence that the Government are delivering the infrastructure our country needs to build a stronger, fairer, more prosperous Britain.
[HCWS1300]
Lighthouses: Light Dues 2019-2020
Nusrat Ghani Excerpts(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
A strong and growing maritime industry is vital to the economy of the United Kingdom and it is critical that we treasure and protect this vital artery if we are to remain a world-leading maritime centre.
The work of the general lighthouse authorities, which provide and maintain marine aids to navigation and respond to new wrecks and navigation dangers in some of the busiest waters in the world, is crucial to underpinning that vision while maintaining our vigorous safety record and continuously improving standards of safety.
Reductions in the three general lighthouse authorities’ running costs have enabled the UK to reduce light dues for four successive years. For 2019-20 intend to freeze light dues rates at 37½ pence per net registered tonne. This will mean that light dues will have fallen by 28% in real terms since 2010.
Light dues rates will continue to be reviewed on an annual basis to ensure that the general lighthouse authorities are challenged to provide an effective and efficient service which offers value for money to light dues payers.
[HCWS1296]