Air Traffic Management and Unmanned Aircraft Bill [HL]

Baroness Vere of Norbiton Excerpts

Committee stage & Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting (Hansard)
Monday 10th February 2020 Lords Chamber

I remind noble Lords that this is not an issue only of enabling airspace to be, in some neutral manner, used to the maximum but of the convenience, comfort and environment of the people who live near airports. It is also very much an issue of safety. Oral Question 1 earlier today raised a number of loopholes and grey areas in relation to private and leisure pilots. The Minister, in her Answer, made it quite clear that the Government are looking at this whole area. Therefore, it is justifiable to ask what the Government have in mind in bringing this new, additional factor into airspace modernisation; it was not a factor when the consultation was done at the end of 2018. I beg to move.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, Amendment 1, moved by the noble Baroness, Lady Randerson, seeks to clarify the phrase in Clause 2(2)(c)

“another person with functions relating to air navigation.”

I shall start by addressing that phrase and then move on to the other parts of airspace modernisation and how the powers to which it refers might be used.

To give a little background, Clause 2 gives the Secretary of State the power to direct any person involved in airspace change, following consultation. Consultation will come up a number of times today; this is a very consultative process, as indeed it must be to work. After consultation with that person, the Secretary of State can direct them to do three things: first, to prepare or submit an airspace change proposal, an ACP, to the Civil Aviation Authority, the CAA; secondly, to take steps to obtain approval to an ACP that has already been submitted; and, thirdly, to review the operation of an ACP after it has been approved. Those are the three things that the Secretary of State can direct.

In Part 1 of the Bill, any

“person involved in airspace change”

is defined as, again, three things. First, they could be an airport operator, and one might expect that in most cases the airport operator would indeed be involved in putting forward the ACP or making sure that it progresses; secondly, they could perfectly well be an air navigation service provider; and then there is that third term to which this amendment relates—it is a probing amendment to understand what sort of person

“another person with functions relating to air navigation”

could be. For example, they could be part of an existing body such as an industry association or an airspace change consultancy brought in after the consultation, perhaps, to look at how the process of the ACP is working. Or they could be from a new body set up to deal with a specific ACP or a group of ACPs. One might imagine a circumstance in which a group of airports set up a new ACP in order to help another airport to deal with its airspace change.

The reason behind the third part of Clause 2(2) is to provide flexibility, because it may be—and one can imagine circumstances in which it would be—that the person involved who was the subject of the direction was not an airport operator or an air navigation service provider. In all this, though—and again I hope that noble Lords will recognise this today—these powers are to be used only as a last resort. We hope that the process will be collaborative and involve various elements working together in order to achieve the positive change that we need. I hope I have explained the reasons why this flexibility is needed. It is that that third person may not be one of the other two but may nevertheless be quite capable of taking forward an airspace change.

[Lord Berkeley (Lab)]

I am very interested in what the Minister said about who might be involved in seeking changes. Yes, it could be done to help a small airport to get better access to its flights or controls, but it could be done to keep someone away. In other words, it could be done to prevent competition. My worry would be how much it would cost for a small airport to oppose or indeed promote these things if those circumstances arose.

[Baroness Vere of Norbiton]

I think we will get into the detail of how airspace change proposals work in the next group of amendments. It is the case that there is a master plan that is overarching—I think hand gestures are needed to describe this—and covers the whole of the south of the country. Within that, there are then 17 airports that may need to make airspace change proposals to a greater or lesser extent in order to fit the master plan. When an airport, be it small or large, puts forward its airspace change proposals, those are considered by the CAA according to the criteria as set out in Section 66 of the Transport Act 2000.

[Lord Berkeley]

Section 70.

[Baroness Vere of Norbiton]

The noble Lord has just corrected me that it is Section 70, and he is absolutely right.

Within all this, it is the CAA that will ensure that airspace change proposals are appropriate. It is not the case that one airport will be capable of coming along to try to duff up another, because both airspace change proposals will be considered as they move through the system. The CAA will look at them, and equity between the two will be one of the important considerations that it will look at.

I turn back to the reasons why this change is possibly not needed. Airspace modernisation, as the noble Baroness, Lady Randerson, mentioned in her opening remarks, is a complex and multifaceted programme. There is the master plan, which will sit over the entire new airspace design, but that makes up just two of the initiatives out of the 15 that comprise the airspace modernisation strategy that has been set out by the CAA. For example, one of the initiatives, as is rightly also set out in the Transport Act, is that the use of airspace has to be equitable for all users. The Government are looking to ensure that airspace is not controlled—I do not want to say “unnecessarily” because I do not think it would be fair, but there might be controlled airspace that could become uncontrolled and therefore allow a greater number of users to use it. I am thinking particularly about the general aviation field, and I certainly know that gliders have sometimes had difficulties because for them uncontrolled airspace is much easier to use.

However, any change in airspace will always go through a process, and that process will have safety as its absolute priority. I think noble Lords will be aware that the number one thing that we have to do when we look at airspace is ensure that planes are safe to fly. It will also take into account the airport’s particular growth plans, so an airport could not turn around and say “No, I’m really sorry—I need that back”. These are fairly long-term decisions and, as I am sure the noble Baroness is aware, the process takes a significant time. However, it is also consultative so there will be a consultation process not only with the general aviation sector but with the airport itself; it will be able to give its reasons why it would like to maintain that airspace as controlled, if indeed that is what it wants to do.

The noble Baroness, Lady Randerson, also mentioned the costs of airspace change proposals. I believe that they can be quite costly, and we will come on to them in a later group so I probably will not address them now. However, I hope that on the basis of my explanation she will agree that Clause 2(2)(c) should remain part of the Bill and feel able to withdraw her amendment.

[Lord Trefgarne (Con)]

Can my noble friend confirm that the words of paragraph (c),

“another person with functions relating to air navigation”,

also include the Ministry of Defence?

[Baroness Vere of Norbiton]

My noble friend is right. It may well include the Ministry of Defence, although I would expect that department to fall under the airports section because if it was putting forward airspace changes, as I believe it will be doing for RAF Northolt, it will be the sponsor in that regard.

[Baroness Randerson]

I thank the Minister for that response, and I will read her words carefully before Report. I am of course aware that this kind of phrase is a delightful catch-all, which Governments like to put in legislation in case some organisation crops up at a later stage that they have not thought of now. However, there is an important argument to be made here about ensuring that we have clarity at this point on exactly what the structure is. That is partly because it is always a welcome situation but also because there is quite a lot of interlink between the Secretary of State, the Civil Aviation Authority, the airport operators and the aviation providers. It is important that people have their tree of command and its requirements pretty clear in their minds but, having said that, I am happy to withdraw the amendment at this stage.

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[Lord Craig of Radley (CB)]

My Lords, I first pick up the question that the noble Lord, Lord Tunnicliffe, started with, which is whether we shall end at the target of Amendment 23. My understanding is that we shall, because that has been agreed through the usual channels. Amendment 24 is in my name, so it is important that I can be confident that we will stop, if we get that far, at Amendment 23. I take the nodding to mean that that is the case and I appreciate it.

While I am on my feet, may I ask a more general question about all these amendments? There has been a great deal of talk about the interests of the civilian side of the aviation industry and how it interacts with the Department for Transport and the CAA, but I am not clear how the Ministry of Defence’s position will be properly safeguarded. The CAA has RAF representation, but I do not feel that that is at a high enough level and I would like to be reassured that the Department for Transport and the Ministry of Defence are in continuous contact, at the right level, on these points. The Ministry of Defence, and the Royal Air Force in particular, needs aviation space not only for getting in and out of airfields; they also have training needs and other areas that have to be safeguarded if the Royal Air Force is to continue to be effective in its training.

[Baroness Vere of Norbiton]

My Lords, I thank the noble Baroness, Lady Randerson, for introducing this group. I also thank my noble friend Lord Kirkhope of Harrogate. I note that he strayed into the area of costs, which is the subject of a later group, but I look forward to his later contribution. As many noble Lords have pointed out, it is important that the Secretary of State is given the powers required to deliver airspace modernisation, but also that these powers are proportionate and do not go further than needed.

Clauses 2 and 3 of Part 1 give the Secretary of State the power to direct a person involved in airspace change to progress an airspace change proposal as required, or direct a person to co-operate with somebody else who is progressing an airspace change proposal. This means that airspace change will not be held up. I think that is an established fact and all noble Lords can agree with it. Additionally, it ensures the delivery of the full range of airspace modernisation outcomes. Again, I have already mentioned that there are many important initiatives within airspace modernisation. These may be related to safety, capacity, noise, air quality, fuel efficiency, improving access to airspace for all users, military access or the introduction of new technology.

On improving access to airspace for all users, the issue of uncontrolled and controlled airspace has been rumbling along for a little while. It dates back to 2018, so airports have been aware that there was going to be a further look at airspace classification for quite some time. Initiative 10 of the airspace modernisation strategy was set out by the then Secretary of State and enhanced in October 2019, when the air navigation directives directed the CAA to progress the identification of airspace volumes. This is all about the balance between commercial aviation and general aviation. I do not believe that a single Member of your Lordships’ House believes that one necessarily has to have priority over the other. It is a question of proportionality and balance.

I want to mention military airspace at this point. We speak to the military all the time. When I was Aviation Minister, I used to chair the Airspace Strategy Board, the highest level of ministerial oversight over airspace modernisation, and somebody from the MoD was on the board. I forget what rank he was, but he made me feel quite small so he was quite senior, and he would contribute to our discussions. In my time on this Bill and in my previous life as Aviation Minister, I was not aware that people from the military had concerns about this process or the processes we oversee. We work well with them, ensuring that they have the access they need and know the processes for RAF Northolt to have the right routes to upper airspace, for example.

[Lord Trefgarne]

My Lords, I apologise for interrupting again. Is the Minister saying that the Secretary of State for Transport now has powers to direct the Ministry of Defence in these matters?

[Baroness Vere of Norbiton]

My noble friend asks a very interesting question. I will check with my lawyers and officials, but I believe that if a Ministry of Defence airfield was holding up airspace modernisation throughout the country by not getting its act together and progressing an airspace-change proposal, the Secretary of State would be able to direct the Ministry of Defence. What would be the alternative—the Ministry of Defence dragging its heels and not participating? Although one cannot imagine a time when the Ministry of Defence would do that, this is, as I will say many times today, a collaborative process. I have never heard of any examples where we have not collaborated well with the Ministry of Defence and all government departments.

Returning to these powers, they would be used by the Secretary of State only if it assisted delivery of the CAA’s strategy and plan. However, airspace modernisation is not just about the master plan. That is why the Government cannot accept the amendments tabled by the noble Baroness, Lady Randerson, and the noble Lords, Lord Rosser and Lord Tunnicliffe. Terminal airspace redesign is the master plan. At the moment we are considering the south, but we will move on to the north; these are only two of the initiatives to be delivered through the airspace modernisation strategy. As I have said, there are many others, including the airspace classification review and so on. The powers to direct relate only to airspace change proposals. They will stand as a last resort if airspace modernisation cannot be continued because an ACP sponsor is dragging its feet.

This goes back to the question of who airspace belongs to. It does not really belong to anybody. It is right that we encourage people to act collaboratively, so that we can all get the most out of our airspace. Coming down the track are the development of a solution for electronic conspicuity, the implementation of more precise and flexible satellite navigation-based arrival and departure routes—which, as noble Lords will know, will have positive implications for noise in some areas—and various international obligations which we have to comply with relating to air traffic management. Here again, these directions may be helpful, but as a last resort.

I cannot accept the amendments that would state that we were looking particularly at the master plan rather than at airspace modernisation as a whole. It is a much broader strategy, and certainly covers a wide range of things, although I would probably say that the master plan and the airspace modernisation from that master plan is one of the key elements of it.

It is worth mentioning that the two documents named in Amendment 2 and Amendment 8—CAP 1711 and CAP 1711b—cover only the period to the end of 2024, the first phase of airspace modernisation. The entire modernisation is due to run until 2040, so it is likely that these documents will be updated and ultimately replaced. Therefore, it is possible that having these specific documents in an amendment would not help the development or deliverability of airspace modernisation.

While I am on my feet, I will clarify something on the master plan. It is being developed by ACOG, which was set up to do so. It will need to be accepted by the CAA into the airspace modernisation strategy and plan. Of course, the CAA will do so only if it is consistent with the directions that it has been given and if it has been appropriately consulted on. The CAA is quite hot on this, actually. It rejected at least one airspace change proposal submitted in 2018, I think, because not enough consultation had gone on with communities. The CAA is clear that its role is very much as an honest broker and to make sure that people have been able to have their say.

When the master plan is complete, and with providing the benefits in mind, ACOG will look at the potential conflicts, trade-offs, interdependencies and the preferred implementation plan, but it will not look at individual airspace design solutions. Clearly, in the lower airspace, that is up to the airports to figure out. It is an extraordinarily iterative process, necessarily so, and enormous engagement is already happening as the master plan goes through its stages.

I hope I have been able to reassure noble Lords, particularly on the inclusion of “master plan” rather than mentioning the airspace modernisation strategy and plan. Also, it is not really appropriate to mention particular documents if we are to give the Bill the longevity that it needs. As I explained, the master plan will already have had regulatory acceptance into the strategy by the CAA, which will assess whether stakeholders have been spoken to. That will include airports, air navigation service providers, and many more people involved in the process.

We believe that there are sufficient avenues of challenge from airport operators and ANSPs. Resolution of conflicts in airspace change proposals already happens, of course, usually through a collaborative process mediated by the CAA. If any airspace change sponsor is still not happy, they can submit an application for judicial review.

I hope that I have been able to convince noble Lords that the powers are appropriate and will enable the Government to take forward airspace modernisation over a matter of decades rather than just in the short term. I also assure them that concerns are heard at every step of the way and are usually resolved collaboratively. That is a process between Her Majesty’s Government, the CAA, the airports and all their stakeholders.

[Lord Tunnicliffe]

Will the Minister be kind enough to formally affirm that we will not take Amendment 24 today?

[Baroness Vere of Norbiton]

I am absolutely delighted to stand at the Dispatch Box and reassure all noble Lords that I really am not on top of my speaking notes for Amendment 24, so we will not take it today.

[Baroness Randerson]

I thank the Minister for that reply. She said something very interesting early in that response, which was that she had to balance the interests of commercial and general aviation, and that she does not feel that one should have priority over the other. First, “general aviation” is a very broad term. A lot of planes with transponders that would be classed as general aviation are able to fly perfectly safely in regulated airspace. However, there are also a lot of leisure pilots with small private planes who have a great deal of fun but do not have sophisticated equipment for flying in that airspace.

With all due respect to the Minister, commercial aviation is worth many billions of pounds to this country. It carries many billions of pounds’ worth of freight and is of huge importance to our business and tourism industries. It is essential that the safety and efficiency of commercial aviation are maintained as a result of this legislation. Anything which complicates that process and makes it more difficult would strike at the importance of our aviation industry at this moment.

I will read the Minister’s words very carefully and invite her to look again at the amendments and what we have said on them to reassure people—airlines, airports and others involved with a key interest in commercial aviation—that their interests remain at the heart of this.

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[Baroness Vere of Norbiton]

I again thank the noble Lord, Lord Tunnicliffe, for introducing this group. I shall start with Amendment 12 and then move on to matters relating to Clause 5 stand part.

As noble Lords have already noted, airspace modernisation is complex: it is a long-term programme and will require close oversight from the CAA in its co-sponsor role and the expert capability of its regulatory teams to assess airspace change proposals. These will be submitted by sponsors under the master plan which is being produced by the Airspace Change Organising Group, ACOG. That all makes sense but it is complicated.

It is crucial that the CAA has the resources to carry out these important functions. I can reassure the Committee that the CAA already reports on its resourcing through multiple channels and these reports are in the public domain. In December 2019 the CAA published its annual report on progress against the airspace modernisation strategy. The CAA is required to produce this report every year through the directions made by the Secretary of State. This report includes an overview of CAA’s resourcing position against the strategy. The next one will be published towards the end of this year. The CAA also produces an annual report covering all of its activity, including its resourcing position and its top-level risks to the organisation. Again, this information is available publicly and is provided as part of its annual consultation on its charging scheme.

On the timing of the report specified in Amendment 12, it is unlikely that the Government, or indeed the CAA, would know within six months of the Bill coming into force whether it will be necessary to use any of powers in the Bill, when it might be necessary to do so and how many airspace change sponsors may need to be directed. Therefore, in addition to those already produced, a report on a specified day would probably not add much to what is already in the public domain. However, I will share the most recent CAA report on airspace modernisation of December 2019 after the debate.

On Clause 5 stand part—this is an important consideration which is worth time—the clause gives the Secretary of State powers to delegate the Secretary of State’s functions under Clauses 2 to 4 to the Civil Aviation Authority and for a notice in writing of this to be published by the CAA. It would provide another means for the airspace changes identified to help deliver the strategy to be delivered, but only if it appeared desirable for this to do so in the future. The CAA is the nation’s airspace regulator and has the expertise to take on this role if required. Given that both the Secretary of State and the CAA have various roles in relation to airspace change, appropriate internal governance structures would need to be put in place, an issue mentioned by a number of noble Lords, including my noble friend Lord Goschen.

This is important because the CAA carries out many different functions—it is a policymaker, a policy implementer, a regulator and a decision-maker—and, as noted by my noble friend, it is able to manage these kinds of conflicts of interest. I frowned earlier when the noble Lord, Lord Tunnicliffe, tried to liken the CAA to an investment bank, but the comparison is not a valid one.

The CAA is an entirely different sort of organisation. The incentives for going against what would be put in place are simply not the same. For example—again, it is not proposed that this would be done, but it is to provide flexibility—if the Secretary of State decided to delegate these powers to the CAA, the Secretary of State and the CAA would need to put in internal governance structures. For example, the DfT would need to make internal governance arrangements to separate the teams for discharging the new powers of direction, deciding on whether to call in an ACP and making recommendations to Ministers on that called-in ACP. This is rather like what the DfT does already on decisions on DCOs where one Minister decides and another Minister is kept well out of the process, and it works. The CAA would make similar internal governance arrangements to separate the CAA teams tracking ACPs, advising on when to use the power, deciding on an ACP and discharging any new powers to direct ACPs if delegated to the CAA. The CAA has already created the internal governance structure that separates the first and second items there because that happens already.

One of the things I wish to press home to your Lordships today is that ACPs are already being considered and are successfully reaching the other side. So when the noble Baroness, Lady Randerson, was talking on the previous group about possible challenges that will occur between airports and asking how they are going to be resolved, we are already resolving them. This process has been going on for quite some time. It is only because of the new aviation modernisation strategy and its requirement to do it on a much more complex area, according to the master plan, that we have decided to take these powers. However, in normal circumstances without these powers airports are perfectly capable of sitting down, talking to each other and coming up with an equitable agreement. In this case, a CAA team would be tracking and advising an ACP, and another team would be making the decision. I believe that the CAA is well used to making these sorts of decisions, if it were to need to do so in future, and to creating those Chinese walls between the different functions it is expected to carry out.

[Lord Tunnicliffe]

The assurances the Minister has just provided are clearly useful. Will they be formally published in any way, in an appropriate document—a CAP or something like that—so that the industry can see what is happening, what governance structures are being put in place and the extent to which there might be physical separation?

[Baroness Vere of Norbiton]

That is a very good suggestion from the noble Lord. I will certainly take it back to the officials and consider how that might be taken forward. I agree that it certainly would provide reassurance to all stakeholders involved in this process to know that in circumstances where the powers were delegated it was clear what was going to happen. I will be in touch with the noble Lord with more information.

Skills are very important because airspace change requires specific skills. The CAA’s annual progress report includes details specifically covering the resourcing plan for the oversight function, which is the high-level function to make sure that airspace modernisation is happening, and the technical expertise which is required to assess the airspace change proposals. I know that the CAA has a medium-term recruitment plan. Last year it was successful in recruiting the people that it needed. It is early days to speak about this year, but it has a plan in place and it knows how many people it will need as ACPs start coming down the track. Although such circumstances are not currently foreseen, we would like to have the flexibility to allow the CAA to take over these powers if deemed appropriate, or if circumstances arise in the future where the Secretary of State feels that it is the best way to go forward. I hope that, based on my explanation, the noble Lord will feel able to withdraw his amendment.

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[Lord Davies of Gower]

I am disagreeing.

[Baroness Vere of Norbiton]

My Lords, as I have said and will probably say many times during the passage of this Bill, airspace modernisation is incredibly complex. A wide range of organisations are responsible for delivering it, and it will be for the benefit of the community as a whole. I understand noble Lords’ concerns about who is ultimately responsible for delivering it. I hope I may be able to add some clarity on the exact responsibilities of the Secretary of State, the Department for Transport and the CAA with regard to airspace modernisation, because it is far from straightforward.

Under Section 66 of the Transport Act, the Secretary of State may give directions to the CAA imposing duties, conferring powers or both with regard to air navigation in a managed area. That is our first stage: the Secretary of State giving instructions or directions to the CAA. In those directions given by the Secretary of State to the CAA, the Secretary of State directed it to prepare and maintain a co-ordinated strategy and plan for UK airspace up to 2040, including modernising the use of such airspace. Again, I believe that all noble Lords will be in agreement with that, which is what has happened.

The CAA is therefore responsible for preparing the strategy, as set out in Clause 8(1), by reference to the directions. If the directions change, the strategy would then change. This is consistent with the CAA’s role as a specialist aviation regulator and its broader statutory responsibilities. The CAA meets this requirement through its airspace modernisation strategy, CAP 1711, and of course the governance of that, as mentioned by the noble Lord, Lord Tunnicliffe, in CAP 1711b.

It is envisaged that the master plan currently being developed to identify in more detail the sort of changes that we will look for will become part of the CAA’s airspace modernisation strategy, which it has been asked to prepare by the Secretary of State. The legislation therefore makes it clear that the CAA is required by the Secretary of State to prepare and maintain the airspace strategy and to publish a report on it, and that the Secretary of State will hold the CAA accountable for this, while Parliament will hold the Secretary of State to account.

However, although that stands in all circumstances, it is not quite so straightforward, because there are responsibilities that lie elsewhere. It is important that we recognise that so, alongside the CAA and the DfT having responsibilities to co-sponsor the framework, the actual delivery cannot take place without the active participation of the industry. This precisely makes the case for the powers that we seek to take in the Bill that the Committee is discussing. We hope for the wonderful carrot world of active participation by the industry, and we have the stick of a potential direction if that does not happen. The noble Lord mentioned the previous attempt at airspace modernisation; he is absolutely right that it did not work because there were no sticks. It was therefore difficult to focus minds on reaching an agreement without the need to use a stick. It would not be beneficial for our relationship with the industry, or indeed stakeholders, to utilise the stick too readily—but, as a last resort, we would.

On the amendment’s requirement to lay a Statement in Parliament on progress against the strategy, I think I mentioned that the CAA already provides an annual report on the progress against the modernisation strategy. I therefore feel that that is probably not warranted. I hope I have clearly explained where the current roles and responsibilities lie so that there is no confusion and that, on the basis of this explanation, the noble Lord might—no, he might not.

[Lord Tunnicliffe]

The Minister says that the Secretary of State now has a stick—great. It is a very blunt stick, if I may say so. Nevertheless, does that mean she accepts that if this goes wrong, and an effective airspace strategy does not emerge from the process, the Secretary of State will be responsible for that failure?

[Baroness Vere of Norbiton]

At the end of the day, in maybe a decade’s time—I do not know how long this will take but it may well be in a decade’s time—I suspect that if this is not going according to plan, there will be questions in this House and in the other House. It will then be for the Secretary of State to answer those questions; in that respect, he has responsibility for making sure that this programme proceeds. However, as in many areas of the world that we live in, there may be circumstances that are beyond his control and are the responsibilities of others. Essentially, however, the responsibility for directing the programme lies with the Secretary of State.

[Lord Tunnicliffe]

I thank the Minister for that response and, while I will consider her words with care, I beg leave to withdraw the amendment.

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[Lord Berkeley]

My Lords, I support the views of my noble friend Lord Tunnicliffe and the noble Baroness, Lady Randerson, on this amendment. It is extraordinary that the air sector is the only one that does not pay any kind of fuel duty. I think that goes back to the Chicago convention a very long time ago. Air passenger duty was introduced as a way of trying to compensate. We can see how important the Government think that is, because they have given Flybe—which I keep going on about—a holiday from it, to enable it to survive. For me, the policy implications of this are all wrong. The Government do not really care about the environment. They want to keep this company alive because Virgin would not be able to save it and it would be a disaster. This might not be the right place to cover this important issue, but this is an aviation Bill and we need to see it addressed on a consistent basis, so I support the amendment.

[Baroness Vere of Norbiton]

My Lords, I thank the noble Lord, Lord Tunnicliffe, for tabling the amendment. I agree with him—and, I am sure, with all Members of your Lordships’ House—that the fight against climate change is one of the most pressing issues of our time. It is absolutely right that we continue to highlight emissions, to publish data on them and to plan for their ongoing reduction. The Government already publish emissions data for domestic and international flights. The Department for Business, Energy and Industrial Strategy reports annually on these greenhouse gas emission statistics. The statistics cover all sectors of the economy, including transport. Those for 2018 were published just last week and are readily available online. I will happily share a link so that all noble Lords can see them.

Within the statistics, individual transport modes—including aviation—can be identified. Domestic aviation is reported on separately from international aviation, because the methodologies used are different. The data is obtained from the National Atmospheric Emissions Inventory, produced by Ricardo Energy and Environment. It is also available online. The amendment referred to the 1998 Aarhus convention, the three pillars of which are already implemented in domestic legislation. Article 5, which relates to access to information, has been implemented through a number of measures, including legislation such as the Environmental Information Regulations 2004.

Measures in the Bill, as many noble Lords have noted, can help tackle emissions by reducing the amount of fuel burn that will come from aircraft, because they will be making more efficient journeys into airports. We are also moving into circumstances now where new technologies will allow for steeper climbs and steeper descents into an airport: again, this reduces the amount of fuel needed. It will also reduce the need for holding stacks, a big user of fuel. Early analysis suggests that modernisation in the south-east could reduce the amount of fuel burn by 20%, which would be a 20% reduction in carbon.

However, I will go away and look at the data. I am as interested as anybody in making sure that the data is correct, that it is published correctly and that it is available for all to see, because only then will we be able to really see the impact of our actions. If the noble Lord has any further details of the sort of data he would like to see, I cannot guarantee to put it the Bill but I may be able to make sure that it is published by colleagues.

[Lord Tunnicliffe]

Will the noble Baroness be good enough to include in that information, which will be very welcome, the methodology behind the figure of 20%?

[Baroness Vere of Norbiton]

I will certainly look to see how that figure was calculated and write to the noble Lord. I am fairly sure that there is a robust methodology behind it.

[Lord Tunnicliffe]

I beg leave to withdraw the amendment.

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[Lord Bradshaw]

I have some experience of the matters in this clause, although not in respect of the air transport industry. As an academic I was involved, over the period of regulation and deregulation, in the activities of the Competition and Markets Authority.

The Bill is about efficiency, and what I am proposing is an improvement in efficiency. I presume that any appeal referred to in new Section 19A should be about competition matters only—I do not see any purpose in referring it to the CMA if it is about anything else—but the Bill allows it 24 weeks to consider the appeal. As I understand it, it has a very small panel of its members that considers aviation matters. These people ought to be known and put to work quickly. The pace of work of the CMA in some cases is such that a snail would be envious that it can go so slowly. I believe there is a strong case for saying that it should come to a decision within 12 weeks of a matter being referred to it. It should have its members, of whom there are a large number, at the ready. There are usually three or four of its members that consider a case and they should give it immediate attention. These people are drawn mostly from the academic community, for which time is something that can be spent lavishly, shall I say? I think this matter demands immediate action. The Bill is about efficiency; let us impart a little efficiency to this. I beg to move.

[Baroness Vere of Norbiton]

I thank the noble Lord, Lord Bradshaw, for introducing this amendment.

Schedule 3 introduces the new process by which the Competition and Markets Authority—CMA—may consider appeals against decisions by the CAA to modify conditions in the licence to provide air traffic services. The provisions in this schedule enable the licence holder, airlines and certain airports that are materially affected by the CAA’s decision to modify a licence condition to appeal that decision. The provisions also deal with matters including who may appeal, the grounds on which appeal may be allowed, what steps the CMA may take when it determines an appeal, the time limits for determination of appeal, and the publication of the appeal determination.

These appeal rights are essential to ensure that the CAA is accountable for its decisions and to safeguard the interests of the licence holder and others whose interests are materially affected by the CAA’s decision-making. As set out in the Bill, the CMA is required to determine an appeal within 24 weeks of the day the CAA publishes a notice of the decision that is subject to the appeal. This is in line with appeals relating to licences covering the economic regulation of airports in the Civil Aviation Act 2012. That is why we selected 24 weeks as a guide. The CAA may extend the appeal period, up to a maximum of a further 12 weeks, but only if there are good reasons. The CAA may also extend the appeal if there is a parallel appeal in the Competition Appeal Tribunal which the CMA considers to be relevant. Again, this is the same as under the Civil Aviation Act 2012.

I point out that the 24 weeks is already a shorter timescale than the CMA usually operates when it is dealing with price-control appeals from other sectors. I feel that we have settled on a good middle ground with 24 weeks. The Electricity Act 1989 allows the CMA six months to determine an appeal, and that is from the date that the permission to appeal is granted, not the original publication of the decision itself.

Permission to appeal to the CMA must be given within six weeks. If it were to be made at the latter end of that six weeks, and there was then an appeal, in the worst-case scenario the CMA would have only 18 weeks to grant permission, consider and determine an appeal, and so we feel that 24 weeks is entirely appropriate. However, if, in due course, we feel that the CMA is being a bit tardy, as the noble Lord suspects it might be, the Government are able to change the time limits for appeals and for the processes within the appeals. These can be made at a later date, perhaps once some appeals have been considered under the powers in new Section 19A(1) and paragraph 25 of new Schedule A1. I hope that, based on my explanation, the noble Lord feels able to withdraw his amendment.

[Lord Berkeley]

The Minister will be aware that one of the consequences of Brexit is a lot more work heading towards the CMA, something that our EU Internal Market Sub-Committee, chaired by my noble friend Lady Donaghy, is looking at. Is the Minister happy that the CMA will be able to recruit more people to cover the civil aviation issues as well as everything else, or will they be constrained by the usual Treasury financial limits?

[Baroness Vere of Norbiton]

We have been discussing the Bill with the CMA. We are talking about appeals to modify the conditions in the licence of the single air navigation service provider which is dealing with the upper airspace. Therefore, we do not expect to keep the CMA particularly busy and are not aware that it would have a shortage of resources.

[Lord Bradshaw]

I thank the Minister for that reply. I was suggesting simply that there were areas where economy was possible. The Government say that they are committed to economy. I suggest that they look at this very seriously. I beg leave to withdraw the amendment.

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Moved by

[Baroness Vere of Norbiton]

16: Schedule 5, page 48, line 27, leave out “relevant Chapter 1 requirement” and insert “requirement that the CAA has determined is being or has been contravened”
Member’s explanatory statement
This amendment clarifies that where a penalty is to be imposed for contravening a requirement in an enforcement (or urgent enforcement) order, the penalty notice given by the Civil Aviation Authority must specify that requirement.

[Baroness Vere of Norbiton]

My Lords, I come to a series of government amendments that are minor and technical, slightly improving the Bill. I hope that noble Lords will agree with them.

Schedule 5 gives the Civil Aviation Authority the tools that it needs to act in the most effective and proportionate way in response to contraventions by the licence holder of licence conditions or statutory duties. Those duties are otherwise known in the Bill as Chapter 1 requirements. The licence holder may also contravene orders, which may be enforced under these provisions.

The amendments concerning new paragraphs 11, 12 and 13 of new Schedule B1 to the Transport Act 2000, which is in Schedule 5 to the Bill, are technical and relate to the procedure associated with the giving of a notification of penalties. They will ensure that the reason for imposing a penalty on an affected licence holder is made clear, and ensure alignment with equivalent provisions in the Civil Aviation Act 2012 so far as is practicable. The Government gave notice of the amendments on Second Reading.

The first amendment clarifies that, where a penalty is imposed for contravening a requirement in an enforcement or urgent enforcement order, the penalty notice given by the CAA must specify that requirement. The next amendment, to line 29 of page 48, inserts wording at the end and provides that, where a penalty notice is given by the CAA specifying a requirement of an enforcement or urgent enforcement order, that penalty notice must specify the Chapter 1 requirement in respect of which the order was originally given.

The next amendment is to line 44 of page 49, and replaces “relevant Chapter 1 requirement” with

“requirement that the CAA has determined is being or has been contravened”.

It clarifies that, where a penalty has been imposed for contravening a requirement in an enforcement order, the penalty notice given by the CAA must specify that requirement. The amendment at line 46 of page 49 inserts wording towards the end that provides that, where a penalty notice has been given by the CAA specifying the requirement of enforcement, that penalty notice must specify the Chapter 1 requirement in respect of which the order was originally given. The amendment at line 37 of page 50 leaves out from “with” and inserts further wording. It provides that, in determining the amount of a penalty, the CAA must where relevant have regard to the steps taken by a person towards complying with both the requirement of an order and the Chapter 1 requirement in respect of which the order was originally given.

The amendment at line 40 of page 50 inserts some wording at the end and provides that, in determining the amount of the penalty, the CAA must where relevant have regard to the steps taken by a person towards remedying the consequences of both the requirement of enforcement and the Chapter 1 requirement in respect of which the order was originally given. The amendment on line 41 of page 54 provides that a reference in new Schedule B1 to the Transport Act 2000 to remedying the consequences of a contravention of a requirement of an enforcement order includes paying certain amounts to a person by way of compensation or in respect of annoyance, inconvenience or anxiety.

Overall, the amendments will enable the CAA to issue effective notices and ensure that the licence holder is treated fairly when the amount of a penalty is determined, therefore reducing the likelihood of challenge and allowing the Bill to function as intended. I beg to move.

[Lord Tunnicliffe]

It seems to me that the key words in that presentation were “minor” and “technical”. They had better be.

[Baroness Vere of Norbiton]

I thank the noble Lord for his contribution.

Amendment 16 agreed.

--- Later in debate ---

Moved by

[Baroness Vere of Norbiton]

17: Schedule 5, page 48, line 29, at end insert—
“(e) where the penalty would be imposed under paragraph 10, specify the Chapter 1 requirement in respect of which the enforcement order or urgent enforcement order (as the case may be) was given.”Member’s explanatory statement
This amendment provides that where a penalty notice is to be given by the Civil Aviation Authority specifying a requirement of an enforcement (or urgent enforcement) order, that penalty notice must also specify the Chapter 1 requirement in respect of which the order was originally given.

--- Later in debate ---

[Lord Trefgarne]

My Lords, I likewise thank the noble Baroness. I must declare an interest. The Light Aircraft Association referred to in the amendment was once the Popular Flying Association, of which I had the honour of being president for a number of years, although I have long since ceased to do that.

There is some merit in concentrating the Secretary of State’s mind on these matters from time to time. I am therefore not unsympathetic to the amendment moved by the noble Lord, Lord Tunnicliffe—although hopefully today’s exchanges will serve the same purpose.

[Baroness Vere of Norbiton]

I thank all noble Lords who have contributed to a nice, uplifting debate on the final group of amendments in today’s Committee.

This Government, and in particular the current Secretary of State, are big fans of general aviation. We recognise completely that it is a key part of the aviation sector. It is an important source of pilots, engineers and technicians who may in future, in their turn, contribute to the success of commercial aviation; of course, they may instead stay in the general aviation sector and also be successful in its growth. So the Government support general aviation and will continue to ensure that its needs are not overlooked at both the local and national level when it comes to airspace modernisation. I assure noble Lords that we have taken steps to ensure that general aviation is represented at every single level of the airspace modernisation governance structure.

CAP1711b, the Government’s annexe to the airspace modernisation strategy, lists all the organisations that must be engaged. For example, the Airspace Change Organising Group, which is charged with creating the master plan, is required to demonstrate that it has engaged with GA bodies, including Airspace4All and the General and Business Aviation Strategic Forum, which is a much broader forum consisting of lots of different stakeholders from the general aviation sector. It must have carried out that engagement for the master plan to be accepted by the CAA. There are also two general aviation representatives on ACOG’s steering committee. The Airspace Strategy Board was discussed earlier. It is chaired by the Aviation Minister and meets regularly, and it too always has at least two representatives from GA, namely the GA advocate and a representative from, again, the General and Business Aviation Strategic Forum.

Furthermore, under CAP1616, the regulatory process that governs airspace change proposals, there must be consultation with local stakeholders, including general aviation, at many stages.

We are also aware that volumes of controlled airspace are underused. This has been a focus for the Secretary of State, who recently directed the CAA to carry out an airspace classification review to identify volumes of controlled airspace where classification could be amended. This is being done because we feel that we have a good relationship with general aviation and that we understand its needs.

The Secretary of State has also directed the CAA to prioritise airspace change proposals from GA aerodromes relating to global navigation satellite systems—a satnav-type approach. The DfT has provided the CAA with funding to set up a facilitation team to advise and support these small aerodromes in progressing these critical ACPs, and has provided it with financial assistance as well. So I hope that this reassures the noble Lord that we take the contribution of GA very seriously.

Turning to the timing of the proposed report, the amendment states that the Government must assess the impact of airspace modernisation on general aviation within 12 months of the Bill becoming an Act. I am sure that noble Lords will agree—and, indeed, have heard many times today—that this is quite a complex and time-consuming undertaking. Therefore, I do not believe that much airspace change would happen in 12 months, as most of the sponsors would be in a consultation phase for their ACP, and it would certainly be wrong for the Government at that stage to prejudge the outcome of those processes, which are of course independent.

I hope that noble Lords accept my assurances about the importance that the Government attach to general aviation and the measures that we are taking to ensure that all types of aircraft in the general aviation sector are heard, not only in airspace modernisation but far beyond that and within the strategy for the aviation sector as a whole.

I have just realised that I forgot about unmanned aircraft. Of course, airspace for unmanned aircraft will be a very important consideration. At the moment, it is envisaged that they will not fly in controlled airspace, so this is not therefore a matter for consideration today, but in future we will have to consider drones and what used to be called “unmanned traffic management”; I believe that it is now called “unified traffic management”. That is a whole new world of pain that perhaps we will return to in future legislation.

I hope that, based on these assurances, the noble Lord will feel able to withdraw his amendment.

[Lord Trefgarne]

I need to apologise once again to your Lordships, I am afraid. There is an interest I forgot to declare earlier: I am president of the British Association of Aviation Consultants. That is in the register, of course.

[Lord Tunnicliffe]

My Lords, I thank all noble Lords who have taken part in this debate; I have rarely had so much support. The noble Viscount, Lord Goschen, hit the nail on the head. Let us go back to the bigger picture. I take the point that this Government probably take general aviation more seriously than any recent Government, and that is a good thing. The problem is that it may well depend on the particular Secretary of State.

The beautiful thing about a regular reporting process is that it concentrates the mind. Anybody who has worked in a large organisation in which several work streams are going along knows that if a work stream is picked out by the chief executive, the board or whoever for regular reports, it sits there in the minds of the officials, operatives, project managers or whoever is trying to do it. They think: “We’ve got to produce this report, and because it will become public we’d better make sure that our reasons for our various actions are well explained.”

On the point about timing, as the Minister knows, it is entirely up to government to bring along amendments to suggest more appropriate timings. This is just an amendment to get the idea off the ground. I think that it is a pretty reasonable idea, and I hope the Government give it some more consideration. Of course, I will look at this debate with great care and decide whether to bring it back on Report. I think it will push things.

[Baroness Vere of Norbiton]

I would like to reassure the noble Lord that we will certainly give great consideration to what he has said today, and perhaps after Committee we might have further discussions about what this report might look like.