Debates between Baroness Foster of Oxton and Lord Empey during the 2024 Parliament

Baroness Foster of Oxton Portrait Baroness Foster of Oxton (Con)
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My Lords, I support the comments made by my noble friend Lord Grayling. I reiterate, as we had a very good debate in Committee, that, when the slot regulations were going through the European Parliament, even the Commission at that time, which liked to be involved in all sorts of things, acknowledged that it would not be involved in decisions about slots.

Slots are key to the value of any airline company, and they are regulated by the independent airport slots co-ordinator. We do not want to have, and we do not support, political and other influences that might not work to the benefit of the carriers and, subsequently, the passengers. As I mentioned, I therefore support the comments of my noble friend Lord Grayling.

Lord Empey Portrait Lord Empey (UUP)
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My Lords, I thank the noble Lord, Lord Grayling, for his amendments, some of which are entirely complementary to what I want to achieve. I have been battling on this for a long number of years. I fully understand the point made by the noble Baroness, Lady Foster, about the value of an airline and how the slots are worth a lot of money—many millions of pounds, in many cases, depending on the time, and I can only see those values rising in the short term.

It is not that I would want the Minister to use hobnail boots to interfere with the slots regime, but there could be circumstances where—it is not impossible—given that we are in an international market and most of the airlines with slots at, say, Heathrow, are in effect international, the shareholdings of those could change. Let us suppose, for example, that a group such as IAG was purchased by a Middle East consortium; it might seek to maximise its profits from the use of the slots.

Let us take another example: regional airports. It is not a Northern Ireland issue. Let us suppose that that consortium decides, “We don’t need flights from Manchester to Heathrow; we could get rid of those”. Then the question would be: how would people get to the Cabinet? Would they have to take the bus? This is an extreme example, but the point is that a future shareholder could decide either to stop using a regional airport or to reduce the service to the point that it creates economic difficulties for a region. That requires a certain degree of interference by the state, because having inadequate regional connectivity is not simply a commercial matter. It is a matter that can affect regions. It can affect business. It could make regions less competitive, which has an impact on jobs and quality of life.

I got a Private Member’s Bill through this House twice, but we were then part of the European Union and the Minister said, “It’s a European competence; therefore, there is nothing I can do”, so that was that. But now we are in a different situation; we can do something. All I want the Minister to be able to say is that, in extremis, sufficient power exists—or that we will make sure that sufficient power exists—to ensure that the regions are not disadvantaged as a result of slots being removed from them and given to transatlantic or worldwide routes. This is not a difficult problem. Amendment 67 from the noble Lord, Lord Grayling, would give the Secretary of State a power to intervene, taking certain things into account. Therefore, I would have thought that it would be perfectly possible to have consensus on this, because nobody wants to see regions isolated or disadvantaged.

We have an opportunity now; it is within our own power. I accept entirely that we do not want to be messing around with the economics of a particular airline, but there could be circumstances in which the regions are put at risk. I hope the Minister will be able to satisfy me, the noble Lord, Lord Grayling, and others that this is not going to happen, and that he and the Secretary of State will have the powers to intervene if necessary.