Amy Callaghan
Main Page: Amy Callaghan (Scottish National Party - East Dunbartonshire)Department Debates - View all Amy Callaghan's debates with the Department for Transport
(4 years, 3 months ago)
Commons ChamberIt is precisely because of the time it takes for businesses to ramp up that last week, I announced an extension to the furlough scheme all the way through to October, to provide that runway for growth—in particular, for those who will open later in tourism and hospitality. As I said, we will introduce flexible furloughing in the extension period of that scheme.
Those on fixed-term contracts are in a particularly difficult situation where employers have placed them on furlough but are unwilling to extend it past their contract end date. One employer highlighted to me that that is because they are concerned that if they continue to furlough an employee without formally extending the contract, Her Majesty’s Revenue and Customs will deem the furlough frivolous and seek reimbursement. Can the Chancellor confirm that employers can continue to furlough those whose fixed-term contracts have ended without any financial repercussion?
I am happy to look at the specific example mentioned. It is important for us—and to protect the taxpayer—that we are paying furlough payments to those who are genuinely in employment and have a formal employment contract, but I am happy to look at that example.
I thank the hon. Gentleman for his question, although I missed his last point. Absolutely, the Gosport ferry provides an important service for the local community to navigate their way around the peninsula. That is why my right hon. Friend the Secretary of State and I met the council leaders. We have spoken to the organisation, and my officials are working with the councils to find a suitable support package for the operator in order to maintain that service.
We are working across Government and closely with the sector on establishing a clear vision and objectives for the recovery of the sector.
The day prior to the announcement of BA CityFlyer redundancies at Edinburgh airport, Willie Walsh gave evidence to the Transport Committee in which he did not mention that once. It is inconceivable that he was not aware of the announcement. Does the Minister share my frustration that that lack of transparency simply prevents Parliament from performing effective scrutiny?
The aviation sector is so important for the UK economy, which is why it has been able to draw down on an unprecedented support package. The Department and I have set up a restart and recovery unit to work with industry, including unions, ground handlers, airlines and airports, in order to come up strong measures to aid the recovery and restart of the aviation sector.