Exiting the EU and Transport
Debate between Drew Hendry and Callum McCaig(8 years ago)
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Drew Hendry
I am happy to answer that. When I was a retailer many years ago, the UK Government introduced an increase in VAT. Before that VAT increase hit, there was a rush to the shops to buy goods. After that increase hit, things fell through the floor, and I think we will see a similar effect.
Scotland has a large number of regional airports, many of which are reliant on low-cost airlines and outbound tourism to survive and to be an economic success. As I have said, the International Air Transport Association predicts a reduction in outbound travel. Since the EU referendum, sterling is down 25%. For airports such as Prestwick, it is even more vital that we continue the open skies agreement to maintain the number of outbound passengers, so it is incumbent on the UK Government to give an unequivocal guarantee that the UK will stay in the single aviation market after we are taken out of the EU. With 76% of UK holidays abroad being taken in the EU, outbound tourism is key for the industry. Outbound tourism employs more than 215,000 people across the UK, and it is a key driver in ensuring that our regional airports are successful. Remaining in the open skies single aviation market is vital to ensure that our airports remain economically viable, and low-cost airlines are vital if regional airports are to be a commercial success.
Callum McCaig (Aberdeen South) (SNP)
My hon. Friend has talked about airports relying on bringing in tourists. Aberdeen airport is heavily reliant on business traffic, but with the difficulties that the oil and gas industry has faced, the airport has redirected its efforts towards sun destinations in the likes of Spain and towards eastern Europe. What kind of message does the lack of clarity about the plans send to an airport that is looking to diversify its offering?
Drew Hendry
My hon. Friend makes a good point, and he underlines the theme that I am working on just now. This uncertainty is bad not only for business, but for consumers, passengers and everybody involved.
Energy Network Charges
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Callum McCaig (Aberdeen South) (SNP)
It is a pleasure to serve under your chairmanship, Mrs Main.
My hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) has said most of what is required and he said it in his usual passionate way. It is right that he should feel passionate about this, because there is a clear sense of injustice—one that, as he rightly pointed out, the Minister has acknowledged in the past. To quote her again for the record:
“It is not right that people face higher electricity costs just because of where they live”.
We have heard that that applies not just to the north of Scotland but to Northern Ireland and other regions of the UK. Nobody is asking for special treatment. We are asking for a level playing field, and I do not understand how that cannot be justified. Perhaps it is possible to hide behind what Ofgem has said, but this is a Government who purport to be a one nation Government. How can you be a one nation Government when, just because you live in a different part of the country, you have to pay more for your electricity? That cannot follow from the Government’s rhetoric.
The Ofgem report states:
“There does not appear to be any clear justification for a national charge in terms of the regional concentration of vulnerability. Distribution regions represent large areas and the socio-demographics of the population in each region tend towards the Great Britain average.”
The justification is fairness. Just because you may have average distributions of poverty and wealth in the north of Scotland and the south of Scotland—which, to be fair, is highly debatable—does not mean that if you are rich or poor in the north of Scotland, you should pay more than anyone in the south of Scotland. If you are disadvantaged in the north of Scotland, it is no consolation to you that you are part of a national average and you fit neatly into a demographic box, so that Ofgem can dismiss your legitimate concerns about additional costs plunging you further into fuel poverty.
Drew Hendry
On the point about additional costs, there are many off-grid users in the highlands and islands, for whom costs are 100% more than they are for on-grid consumers. That adds to the problem.