Aviation, Travel and Tourism Industries

Chris Grayling Excerpts

Thursday 10th June 2021 Commons Chamber

[Robert Courts]

I am grateful to my right hon. Friend for raising that point and appreciate that it is one on which many hon. Members will want an answer. We have always been clear that we could use the green watch list where we were able to do so. We have equally always been clear that when the evidence requires us to take swift action, we will do that, because the public would expect us to take action to protect public health, which is what we did in that instance.

As recommended in the Global Travel Taskforce report, the Government’s approach will be assessed on 28 June, 31 July and 1 October. This is to ensure that the measures and the approach in place are still adequate, that they are relevant, and that they are efficient. Of course, the first of those review points comes up at the end of this month.

The GTT report included a commitment for the Government to produce a tourism recovery plan, as was reiterated in the 22 February road map. That tourism recovery plan will set out the transformation and growth of the sector over the next five years as part of our economic recovery. The plan will address both the short-term and medium-term issues affecting the sector, such as bringing back consumer demand and supporting businesses as they reopen. We also wanted to set the sector on a long-term path to support delivery of the Government’s wider objectives, such as levelling up, strengthening our Union, and enhancing growth and productivity. We want to future-proof the tourism sector. We are determined to see the development of a more sustainable, innovative and data-driven tourism industry.

As we return to travelling, building consumer confidence is key. On 17 May, we published a passenger covid-19 charter that sets out consumer rights and responsibilities while restrictions are still in place, alongside the Government’s expectations of the businesses in the sector. In the meantime, we will be regularly reviewing travel measures, taking into account the latest domestic and international data. The system we have designed will be adaptable to the evolving epidemiological picture, and the Government must of course be prepared to take action at any time to protect public health.

[Chris Grayling (Epsom and Ewell) (Con)]

My hon. Friend mentioned that the Government plan two or three further checkpoints during the summer. Is he actually saying, as he talks about consumers and recovery, that if a destination is not placed on the green list or the amber list by 31 July, it cannot be reopened to travel before 31 October?

[Robert Courts]

If I have understood my right hon. Friend’s question correctly, the position is that we continue to assess all the measures that apply in terms of policy at the checkpoint reviews. Similarly, we look approximately every three weeks at which countries fall into which list. When I talked about consumer confidence in the charter, I was referring to the rights that consumers have and the responsibilities of those in the industry. I hope that I understood his question correctly; if not, I will come back to it later.

In the last couple of minutes, I would like to say a little bit about our priorities for the future of aviation. The UK has a proud history at the forefront of global aviation. It provides hundreds of thousands of jobs and billions of pounds to the UK’s GDP and tax revenues—money that is invested back into our vital national services. We are working on a strategic framework that will focus on building back better and ensure a successful UK aviation sector for the future. That framework will set out a plan for a return to growth of the aviation sector, and it will include consideration of workforce and skills, Union connectivity, noise, innovation, regulation and consumer issues. The strategy will complement the Government’s net zero aviation strategy. It will consider the critical role that aviation plays in growing the UK’s global reach and we will publish it by the end of the year.

The measures I have outlined demonstrate how determined the Government are to support this vital industry as we start to rebuild the economy. I am a Minister in the Department for Transport. By definition, I want to see people travelling, and I want to see people flying. I want a thriving aviation industry. I want to welcome people back to our shores to enjoy the delights our country has to offer, and I want our people to be able to explore the wonders of the world. But we cannot and will not rush this, and we cannot and will not undermine our hard-won progress. If we move too quickly—recklessly, even—we could throw away our progress and take us all, including the travel, tourism and aviation industries, back to square one. The best way to support our aviation, travel and tourism industries is to resolutely follow the vaccine roll-out, return life to normality and allow these industries once again to soar.

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[Chris Grayling]

Will the hon. Gentleman give way?

[Gavin Newlands]

I would love to, but I am extremely pressed for time so I will crack on.

Given the time constraints I just mentioned, my hon. Friend the Member for Ochil and South Perthshire (John Nicolson) will make more comment on the tourism sector in his speech.

I think we all accept that the very nature of the pandemic has meant that reaction to events has had to be quick, changing in some cases day to day based on epidemiological evidence. Believe it or not from my tone sometimes, I am sympathetic to the pressures on Ministers and officials who have had to deal with the pandemic day to day and hour by hour, taking decisions with massive consequences for our economy and society. It has to be said though that the Government’s conduct in preventing the further importation of the delta variant was nothing short of a disgrace.

It is difficult to work out whether irresponsible delays in reintroducing travel restrictions to and from India while case numbers were surging were down to governmental desperation and self-interest while trying to set up a trade deal that would not be necessary if the kamikaze mission of Brexit had not been set in motion, or just sheer incompetence. Whatever the real reason, the result has been the importation of delta cases that could have been prevented had timeous action been taken or, indeed, had the UK Government just followed the advice provided on hotel quarantine, as the Scottish Government did. The UK Government even refused to help identify passengers in England travelling on to Scotland so that they could also be required to enter quarantine hotels. We can see the result of that approach right now in the rising delta caseload.

Although some restrictions on air travel are still necessary, aviation more than any other sector needs help and support from the state at this time of emergency. Unbelievably, we are still waiting for the type of sector-specific support promised by the Chancellor right at the start of the pandemic. Even with the limited fiscal and constitution levers at their disposal, the Scottish Government stepped up immediately and provided more targeted support to aviation businesses than the UK through extending 100% business rates relief for the whole of last year, and now for this financial year, too. In contrast, when the UK Government finally followed suit, they did so in a much more limited way when it came to eligibility and capping that support. They have also failed to match the additional year’s support, extending the limited scheme by only six months, a position that will surely have to change should their policies continue.

In a coup de grâce, the Government also saw fit to remove the extra statutory concession that had provided vital retail revenue for airports across the country and that was of particular importance outside London and the south-east. That decision has already resulted in dozens of retail outlets closing and hundreds of jobs going from airport retail in Scotland alone. The impact of that lost revenue will not only be felt in retail operations; the income was used to cross-subsidise a huge amount of airport operations, including attracting new routes and retaining old ones. In short, the decision is a hugely myopic one that I hope the Treasury will reverse.

We might think that that was plenty for the industry to be dealing with, but there is always one more thing with this Government, particularly if it involves Brexit. UK airlines have been put at a competitive disadvantage versus their EU counterparts when it comes to cargo and chartered routes. In terms of traffic rights, we—in the form of the Civil Aviation Authority—are very quick to grant rights to other European airlines, but the same reciprocity does not occur in many European countries. That clearly makes it much more difficult for UK-based airlines to secure contracts. Indeed, nothing makes that point more starkly than the fact that the Ministry of Defence has given a contract to transport UK armed forces personnel to a Polish airline, bailed out by a Polish Government, which we have quickly given rights to fly. All the while, UK aircraft remain grounded and the air crews and associated personnel remain furloughed at the taxpayer’s expense.

So much for taking back control. This is yet another Brexit dividend from people who brought us the sunny uplands—the same uplands our hill farmers are currently wrestling with. This is no way to secure an aviation sector, or the hundreds of thousands of jobs that directly and indirectly rely on it in the short or long term. Building capacity and sustainability in the long term has to be the priority for Government and the industry once the worst of the pandemic is over.

I have lost count of the number of times that regional connectivity has been raised with Ministers in this place. Our economies and wider communities are being held back and damaged by the UK’s over-centralising, decades-old policy of reliance on London and the south-east as gateways to the rest of Europe and the world. Regional connectivity is needed if we are to attract visitors and tourists over the coming months as restrictions are lifted. Although VisitScotland, the Scottish Government and the tourism and hospitality industries are all working hard to restart the sector, the fact is that visitors need to be able to get here in the first place.

We have now been waiting 17 months for the regional connectivity review. Local economies need that review to report, and to report now. There is no time to lose for communities that stand to be frozen out of recovery and see jobs and prosperity disappear for want of any strategy or plan from the Government. It must be remembered that for regional airports, Flybe’s collapse was a hammer-blow that preceded the pandemic. Even without covid-19, we would still be facing the same substantial challenges and, I rather suspect, the same lack of action from the Government.

I must make an uncharacteristically positive point. With the demise of Flybe, Loganair is now the UK’s largest regional airline. The airline is based in my constituency, and I was very proud to see the announcement this morning that it was the UK’s first regional airline to become carbon-neutral. I congratulate it on that initiative.

In conclusion, I go back to the gravity of the situation. The lack of action that I have spoken of has extended to sector-specific support, business rates relief and airport retail. Even at this stage, I still urge the Government belatedly to follow up on their promises with action. As the Minister himself has said, pre pandemic the country’s aviation sector was the third biggest. The Government’s inaction has ensured that it will not be, as we move out of the situation. It is time to listen to the industry and our aviation communities and map a future that ensures sustainability, economic growth and job security.

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[Chris Grayling (Epsom and Ewell) (Con)]

I listened carefully to the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts). He is a good man and a good minister. I know he does not share the Government’s universal view, but today we need him, and his colleagues in the Department and elsewhere across Government, really to step up the pressure on the places where the problems really are.

People in the Department of Health and in the public health world have done a fantastic job in many respects in the past 12 months—the vaccination programme is something of which we should all be proud—but they do not understand the business model of the travel sector, and the decisions they are taking are going to cost hundreds of thousands of jobs, put businesses out of business and leave the sector decimated. The Minister talked about the future of the aviation sector. Well, there is not going to be one if we do not get this resolved pretty quickly.

I was disturbed to hear the Health Secretary talk about getting international travel back up and running in the medium term. That is not good enough. We had an approach. We had a green list. The Joint Biosecurity Centre recommended putting Malta, for example, on the green list. Are we flying to Malta? No. That is inexplicable and indefensible, and it has got to stop. If a country is recommended as safe to fly to, we should be able to travel to it.

We also have an amber list. We are told that we can fly to countries on the amber list, but we have to quarantine when we get back, but we are also told that we should not go on holiday to them. Well, I am afraid that I simply disagree with that. My view is very clear: if people are willing to travel to a country on the amber list, for whatever reason, and if they are willing to follow the rules on self-isolation when they get back, they should be free to travel there. I simply disagree with Ministers who say, “We don’t want you to travel to an amber list country for a holiday.” We want the industry to recover. If people are willing to follow the rules around quarantining, they should be free to travel wherever they wish, and I think they should do so.

If we do not take steps as quickly as possible—the default really has to be that we open up places as soon as they are safe—we are going to see this industry decimated. We now need a much, much, much less risk-averse approach to international travel. We need a proper road map back into operation for the sector. What are the milestones? When can we open up amber countries to the green list? When can people start travelling freely without quarantining? What are the milestones that have to be reached to achieve that? We have done that domestically; let us now do it internationally and let us do it pretty quickly.

If we do not, the situation is very clear. We had a lively debate in this place on Monday about whether we could afford an extra aid budget. The argument the Government put forward is that the public finances are under huge pressure, and they are right. But they are going to be under even bigger pressure if we do not sort this sector out, because it will make no money until 2022 and we will have a straight choice: either we bail it out to the tune of billions of pounds more, or next year we will have no airlines, closed airports, and lots of little businesses like the one we just heard about in north London will have disappeared. That is not what I want, so my message to Ministers is: get this done; sort it out; get that road map in place; and start to take a less risk-averse approach.