Oral Answers to Questions

Amy Callaghan Excerpts
Monday 18th May 2020

(3 years, 10 months ago)

Commons Chamber
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Owen Thompson Portrait Owen Thompson (Midlothian) (SNP)
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What steps he is taking to support the economy during the covid-19 outbreak.

Amy Callaghan Portrait Amy Callaghan (East Dunbartonshire) (SNP)
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What steps he is taking to support the economy during the covid-19 outbreak.

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Rishi Sunak Portrait Rishi Sunak
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It 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.

Amy Callaghan Portrait Amy Callaghan [V]
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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?

Rishi Sunak Portrait Rishi Sunak
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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.

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Kelly Tolhurst Portrait Kelly Tolhurst
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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.

Amy Callaghan Portrait Amy Callaghan (East Dunbartonshire) (SNP)
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What discussions he has had with Cabinet colleagues on the future of the UK aviation sector.

Kelly Tolhurst Portrait The Parliamentary Under-Secretary of State for Transport (Kelly Tolhurst) [V]
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We are working across Government and closely with the sector on establishing a clear vision and objectives for the recovery of the sector.

Amy Callaghan Portrait Amy Callaghan [V]
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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?

Kelly Tolhurst Portrait Kelly Tolhurst
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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.