Aviation: Regulatory Burden

Viscount Goschen Excerpts

Tuesday 21st January 2014 Grand Committee

[Viscount Goschen (Con)]

My Lords, I, too, congratulate my noble friend Lord Rotherwick on bringing forward this short debate today. There cannot be anyone better qualified in Parliament to discuss the concerns of general aviation. It may not be broadly known that not only is my noble friend a pilot, a board member of the LAA and a vice-president of the General Aviation Alliance but he also builds aeroplanes with his bare hands and then flies them to the ends of the earth. This is adventurous stuff, and we are very lucky to have his wise counsel and guidance this afternoon.

I make a short declaration. I have a UK private pilot’s licence and I operate a vintage aircraft that comes under the Light Aircraft Association permit to fly regime. About a hundred years ago, I had some responsibility for aviation policy in the UK, and I am very pleased to see that considerable progress has been made on the issues that we were grappling with in the mid-1990s.

It is a privilege to be able to fly in the UK and internationally. We talk of the privileges of our licence, and I think that the general aviation community is always aware of that fact. It is a very law-abiding community. The initiative that we have been talking about this afternoon is really about aligning regulation with the safety-critical issues that the GA faces and making sure that there is a proper match.

The CAA has been criticised in the past by the GA community for taking perhaps a too heavy-handed and too costly approach to issues such as airfield regulation. However, the initiative that we are discussing today represents a profound change in approach. While we recognise that the detail of general aviation is of interest to some noble Lords, a real success story in terms of a deregulation initiative—a partnership between the industry, participants, the Department for Transport, the CAA and other areas of government—is really to be highly commended.

All those who have participated and who take an interest in this sphere will feel that real progress has been made, and this is a good news story. We can always guarantee that it will get very little promotion and broader discussion because it is a good news story rather than a bad news story. But the Government say that they are committed to deregulation—Governments have said that for a long time—and will actually bring forward sensible, carefully and clearly thought through proposals that demonstrate that, and they are to be commended. Mr Haines at the CAA is to be commended, too, and the LAA itself, which is a major player in this environment, also needs to take some of the credit. There are lessons to be learnt more broadly, way outside of aviation, for areas where the burden of regulation can be carefully considered and stepped back from in certain areas where there is no loss to safety.

It is well worth reading the documents produced by the Government and the CAA. I shall read a short quote from the foreword to the government document, which says:

“Regulation often appears too prescriptive, impractical and inappropriate for the general aviation sector … Safety regulation should therefore impose the minimum necessary burden and empower individuals to make responsible decisions … The package of measures we have agreed will overhaul the GA regulatory framework, moving it from a prescriptive, bureaucratic regime to a light-touch, proportionate system”.

That is a major change, and I believe that it represents major progress.

The CAA’s initiative of bringing forward its own specialist GA unit is an important one. I was drawn to one sentence that features in Mr Haines’s introduction to the CAA’s document. At the end of the third paragraph, he says that it wants to,

“help create a vibrant and dynamic GA sector in the UK”,

and that it will,

“work with other Government Departments to identify the potential for funding to develop new technology”.

I believe that that represents a significant change as well, in that it takes the CAA’s declared remit more into the promotion of general aviation than the mere observing and regulating of it.

There is also a commitment in the CAA’s document to use the legal process as a “last resort”. I welcome that approach as well. It must be sensible in a detailed technical environment such as this to use regulation when it is really required but in other cases pursue the guiding principles that have been established. Principle one is to deregulate wherever possible. This means that there should be removal of CAA oversight where not required, and that we should,

“identify what within the GA sector might be removed from EASA oversight”—

that is, European oversight—as well as easing,

“the definition of ‘commercial activity’”.

The second guiding principle is to maximise delegations, which have worked very well in the past with the LAA and the BMAA, and I believe will continue to do so.

In the final analysis, this is an ongoing process. It is not a one-off deregulation report saying, “Let’s get on with it”. The Government have set up the CAA and its own panel to prompt it to continue and keep the pressure on, examining everything that comes forward. There is a significant European aspect to this with EASA; it is a highly complex field. We do not have time to talk about it today.

I conclude with genuine congratulations to all those who have been involved. I hope that we can learn broader lessons for regulation in other spheres.

Civil Aviation Bill

Viscount Goschen Excerpts

Wednesday 27th June 2012 Grand Committee

[Lord Trefgarne]

My Lords, I strongly support Amendments 3 and 9, and perhaps Amendment 11 as well. Like my noble friend Lord Rotherwick, I have a connection with what used to be called the Popular Flying Association, of which I was once the president. Indeed, in that capacity, on one famous occasion, I was lucky enough to fly the then Aviation Minister to open the PFA annual rally. Who was the Aviation Minister? He was none other than my noble friend Lord Goschen, and I am glad to say that we were met with tumultuous applause. As I recall, the only problem was some very nasty weather, about which I had to go to see the noble Lord, Lord Hunt, at the Met Office because we felt that we had not really had proper warning. Happily, all the matters were properly resolved eventually.

General aviation is a very important part of the aviation industry and of aviation activity as a whole. It is quite properly regulated by the Civil Aviation Authority, including the hot air balloons to which the noble Lord, Lord Berkeley, referred. Indeed, a few months ago, I had the privilege of flying in one. I must warn your Lordships that it is very exciting and great fun, except the landing. You usually end up in a heap on the grass, but that is for another time. However, general aviation is crucial. Amendments 3 and 9, which were tabled by my noble friend Lord Rotherwick, are important and relevant, and I hope the Minister will be sympathetic, at least, to the aspirations of those amendments, or perhaps will even agree to them.

[Viscount Goschen]

My Lords, I support the thrust of the amendments tabled by my noble friend Lord Rotherwick. I should also make a mildly spurious declaration that I hold a private pilot’s licence and am the operator of an aircraft, although I can assure the Committee, much to its relief, that I have no intention of going near an economic regulated airport, any more than a hot air balloon would.

My noble friend is right to draw attention to the economic importance of the heavier end of general business aviation. A great deal of economic value is tied up with the importance of being able to move business leaders around the country quickly and, indeed, between countries. To do that, access to major airports is required. My noble friend also drew the Committee’s attention to important areas, such as medevac or ambulance flights. One can also think of traffic monitoring flights, the importance of the maintenance sector and so forth. It is true that general aviation, in particular, business aviation, has been squeezed out of the major airports.

My noble friend is not trying to do anything prescriptive. He is not trying to ensure that a certain share of slots or capacity is accounted for by business aviation. That would not be appropriate. All he is trying to do in his carefully worded amendments and in his remarks in support of them is to draw the Government’s attention to the economic importance of this specialist field. It is easily overlooked. It is not a populous field. Most members of the general public are not going to come across general business aviation flights, but that is not to say that they are not extremely important. My noble friend was right to draw the Committee’s attention to its notable scale. I think he said that this sector is worth £3.7 billion to the economy and employs 50,000 people, so it is important that in determining its regulation the CAA should at least take account of the important interests of this field. It is very easy to portray it as cigar-smoking fat cats coming to appear on television game shows including, perhaps, Members of your Lordships’ House, but in fact we are really talking about the ability for business investment to be drawn into the country. Many business leaders travel by executive aircraft to access our centres of commerce around the country as efficiently as possible. I support my noble friend’s amendments, and I look forward to hearing the Minister’s response.

[Lord Jenkin of Roding]

My Lords, I am astonished that there is no regulation of general aviation of the sort that is covered by my noble friend’s amendment. If that is right, I cannot understand why the CAA should not have some general role. Air taxis are presumably within the definition that he encounters. There was a time when I had to fly from my home in Essex to Liverpool several times a month, and much the easiest way was to take an air taxi from Stansted Airport, which we used frequently. On one occasion, the pilot suggested that I take over the controls, which lasted for about 10 seconds because I did not have a clue. I look forward to hearing my noble friend’s response to the amendment.

Turning to the question of the noble Lord, Lord Berkeley, I, too, have had one or two very interesting trips in a hot air balloon. As Secretary of State for the Environment, I had to decide on the planning requirements for tethered balloons, which are often used for advertising. I was confronted by two very strong opposing views. Some people said, “These are perfectly horrible and should be strictly controlled”, while others said that it was a harmless form of advertising. I split the difference and said that no planning permission was needed if the balloon would be there for only 14 days or fewer. Everybody seemed satisfied with that and I have never heard any more about it.

Landing in a hot air balloon is very exciting. The important thing is not to get off too quickly or it will disappear up into the air again, which can be very disconcerting. However, it is a splendid sport and I have never forgotten the occasion when I was staying officially at Leeds Castle. Very early one still morning, there was a rally of hot air balloons. I was invited to it by American Express, which had a very large balloon. We took off and had the most marvellous flight. However, before we left, we carefully and quietly climbed up the side of Leeds Castle, where my wife was leaning out of the window in her nightgown. I was able to bid her farewell, almost touching but not quite. We had a very skilful pilot and I hugely admired how he managed the hot air balloon. Again, it seems that the CAA should have some regulatory role in this.

Olympic Games 2012: Disruption to Businesses

Viscount Goschen Excerpts

Monday 26th March 2012 Lords Chamber

Asked by

[Viscount Goschen]

To ask Her Majesty’s Government what action they are taking to ensure that disruption to businesses in London caused by the 2012 Olympic Games is minimised.

[Earl Attlee]

My Lords, London will be open for business this summer. Everyone involved in planning for the Games is focused on delivering a great Games while keeping London and the UK moving. Since November 2010, Transport for London has been working with businesses of all sizes in the capital to help them plan ahead for the impact that the Games might have on their staff travel, their deliveries and other aspects of their operations.

[Viscount Goschen]

My Lords, I thank my noble friend for that helpful Answer. Given that businesses in central London—here I have an interest of sorts to declare—have been officially advised to plan for severe disruption to their operations because of traffic congestion as a result of the Olympic route network and the congested public transport system, can he assure the House that everything possible will be done to ensure that, while the Olympic Games are a great success, the normal commercial business of London is kept moving as far as possible?

[Earl Attlee]

My Lords, we recognise the importance of this issue. We accept that there will be serious consequences if we get the planning wrong. There may be some severe disruption to a few businesses in certain locations, but the overall policy objective is business as usual. There will be impacts on businesses, most of which, overall, will be positive. However, there are potential adverse impacts. They can be mitigated by timely information and good planning. The website, Get Ahead of the Games, provides both the necessary information and the planning tools.

Aviation

Viscount Goschen Excerpts

Thursday 13th October 2011 Lords Chamber

[Viscount Goschen]

My Lords, I too declare an interest as a private pilot and aircraft owner. I do not have quite the degree of technical or operational skill as my noble friend Lord Rotherwick, whom I thank for bringing the debate forward this afternoon. Noble Lords should know that not only is his Lordship a distinguished pilot, but he also creates aeroplanes with his bare hands: a lot of clinking and clanking comes from the shed and a couple of years later a sleek aeroplane emerges, which shows a degree of hands-on knowledge that this House clearly urgently needs in so many fields.

Today we are considering the importance of maintaining the infrastructure necessary to support general aviation in this country. Once facilities are lost, they very rarely come back. An airfield can very quickly become a housing estate, and given the difficulty and expense involved in establishing new airfields, these facilities are very unlikely to be replaced. General aviation—everything apart from airline and military flying—is important. My noble friend Lord Sharkey gave clear indications of the value to the economy of maintaining this sector.

It is also important that we have a large flying training industry in the UK, supplying pilots into the commercial sphere. Despite the weather that we enjoy, as it were, in this country, pilots and would-be pilots come from all over the world, sent here by airlines and governments for the very high quality of training that exists in the UK. The UK is still the gold standard for aviation training, arguably the best in the world. We have that reputation and we must keep it that way if at all possible.

Light aviation in this country depends as much on small, grass airfields as on large facilities. Many long-established operations, some hailing from shortly after the dawn of flying, operate from what to the untutored eye would look like a farmer’s field with perhaps a few nissen huts or hangars. The development value of this land is out of all proportion to the activity and viability of the businesses that exist on it. If it were to be considered to be brownfield land and therefore open for development, the consequences would be very serious. The value of a large acreage of a grass field that is suddenly considered appropriate for development would be very substantial. It is highly likely in that circumstance that the landlords—some of them may be local councils, for example—may choose to do away with the aviation facilities and replace them with housing or a supermarket development, leading to an irreplaceable loss of facilities.

With the degree of regulation in this industry, an area that has been touched on, and the high cost of fuel, these businesses are sometimes only marginally profitable, yet they sit on substantial areas of open space. It is worth remembering that if these businesses did not exist as they do now, they would almost certainly be converted into intensive development if planning regulations allowed that to happen. While some people may have legitimate concerns about living in proximity to airfields, they would be wise to consider the alternative and be careful what they wish for. However, the great majority of airfields go to huge lengths to engage with their local populace and neighbours, and to build good relationships.

We have heard today that it is important for the country to retain a healthy general aviation sector in order to generate employment, training and transport links, and recreation to those who fly for pleasure. But these airfields are under constant threat and speakers have given specific examples of where that has been the case. In a way, there is also threat from the cost of regulation and from the Civil Aviation Authority. The CAA is alive to these general aviation concerns and has shown itself to be keen to listen. In recent years, it has put through an increase in charging for inspection for smaller airfields, which has shown rapid growth in the fees charged. The CAA operates on something of a cost-plus basis. That cost of course is determined by the organisation. The plus is its requirement to generate a return on the capital deployed. From memory, I think that it is 8 per cent, although I am sure that the Minister can correct me if I am wrong. It is, perhaps, even 6 per cent.

European regulation is also important. When we look at the strength or fragility of the airport and GA infrastructure, we should consider the effects that regulation, which often these days comes from Europe, can have. I would be the first to say that we are fortunate in this country in terms of our regulatory regime. The CAA knows a great deal about the field and has shown itself willing to engage in the issues. We have a deregulated regime for vintage and home-built aircraft in the form of the Light Aircraft Association, which is a tremendous privilege. It is a high-quality organisation like the CAA. This regime works very well.

However, we need to be vigilant. This may sound like an esoteric subject for the House of Lords to discuss on a Thursday afternoon but it is important. We have heard from noble Lords who have spoken of much greater figures in terms of the economic scale of the industry—more than £3.5 billion—and the employment that it supports. There are strategic and tactical implications, and it is vital that we maintain this infrastructure.