Aviation, Travel and Tourism Industries

Baroness Laing of Elderslie Excerpts

Thursday 10th June 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I spoke to the Minister beforehand. The holiday and travel sector, in particular, has great uncertainty. What help can be given to businesses such as Laser Travel in my constituency that offer a tailored, top-to-bottom service? Existing furlough, self-employed support for international travel businesses for a further six months, retained business rates relief and a further tailored recovery grants regime for travel agents, tour operators—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Gentleman cannot make a speech at this point. Not everyone will get to speak in this debate who wants to do so, and interventions simply cannot be that long.

[Robert Courts]

I would be delighted to discuss this matter further with the hon. Gentleman. Later in my speech I will come to some of the factors that have been available to some of the wonderful travel and tourism businesses that we have all over the United Kingdom. That may give him the answer that he wants. If it does not, I am happy to discuss it further with him and I know that the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston)—the tourism Minister—would be happy to do so as well.

As I was saying, everybody can be reassured that the Government recognise the critical national importance of international travel. It connects families that have been kept apart, boosts businesses, brings in investment and underpins the UK economy. It is essential to the way that we see ourselves as a country: open, international and cosmopolitan. That is why it is essential that any steps that we take now lay the groundwork for a sustainable, safe and robust return to international travel.

In February 2021, the Prime Minister asked the Secretary of State for Transport to convene a successor to the Global Travel Taskforce, building on the recommendations set out in November 2020. The taskforce published that report in April 2021. I would like to offer my sincere thanks to the travel and tourism industry for its enormous contribution and close co-operation with Government in the development of the report and for its continued support in the ongoing efforts to successfully implement the report’s recommendations. The report set out a framework for a safe, sustainable, robust return to international travel, seeking input from across the transport industry.

The Secretary of State confirmed on 7 May that non-essential international travel would resume on 17 May, lifting the “stay in the UK” regulation and allowing international travel to recommence under the new traffic light system. The system cautiously balances the reopening of international travel with managing the risk posed by imported variants. It categorises countries based on risk, allowing us to protect public health, and particularly the roll-out of our world-beating vaccination programme, from variants of covid-19.

The Joint Biosecurity Centre produces risk assessments of countries and territories. Decisions on which list a country is assigned to and any associated border measures are then taken by Ministers, who take into account that JBC risk assessment alongside wider public health factors. The Government have had to make difficult decisions in the early stages of the return to international travel; however, they are necessary to ensure that we do not risk throwing away our hard-won achievements, which have been possible only through the hard work of the British people, and people coming forward for their vaccinations when called. However difficult these times are, and I am under no illusion that they are challenging, we must not risk having to go backwards.

To address the immediate impact of travel restrictions we have introduced an unprecedented package of financial support across the economy, totalling approximately £350 billion. By September 2021, the air transport sector alone will have benefited from around £7 billion of Government support, including accessing more than £2 billion through the Bank of England’s covid corporate financing facility and around £1 billion to £1.5 billion of support through the furlough scheme. That is the same job retention scheme that some Labour Front Benchers have criticised and called “money wasting”. I could not disagree more, and I am sure that the people whose jobs it has saved would disagree as well.

The extension of the furlough scheme to the end of September this year allows us to continue supporting businesses and protecting as many jobs as possible. As part of our economy-wide support we have provided over £25 billion to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks. We have extended business rates relief and introduced new restart grants of up to £18,000 for many in the sector. We have also extended the cut in VAT for tourism and hospitality activities to 5% until the end of September.

The levelling-up fund, the city and growth deals in Scotland and Wales, and the towns fund all show that the Government are investing in tourism infrastructure across our Union. This week, we announced town deals for a further 33 towns as part of the towns fund programme. Those places, which range from seaside towns such as Hastings and Hartlepool to the historic market towns of Bedford and Bishop Auckland, will share over £790 million to boost their local economies, create jobs and help them to build back better from the pandemic.

To date, we have announced town deals for 86 places across England worth over £2 billion in total. A new £56 million welcome back fund is helping councils to boost tourism, improve green spaces and provide more outdoor seating areas. Part of that funding will be specifically allocated to support coastal areas, with funding going to all coastal resorts across England to welcome back holidaymakers safely in the coming months.

On health certification and testing, the border requirements that international visitors will need to follow depend upon the risk rating of the locations that they have been in prior to arrival, as I referred to. As variants of concern still pose a significant risk, testing from a UK Government approved provider remains in place. We recognise that the cost of those tests is still too high. Although we have seen the price of post-arrival tests decrease from around £210 to around £170, we continue to explore options for lowering the cost of testing further, including cheaper tests being used when holidaymakers return home.

Passengers can now use the NHS app to demonstrate their covid-19 vaccination status or alternatively can request a letter that outlines proof of vaccination five days after they have received their second dose of a covid-19 vaccine. The ability to prove one’s vaccination status for outbound travel using the NHS app and an inclusive letter service means that several countries now accept vaccinated visitors from the UK with reduced or removed testing and health measures.

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[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.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It might be helpful for colleagues to know that I intend to run the debate until around 4 o’clock, because there is another debate after this, and therefore there has to be a very low time limit of three minutes, I am afraid, even at the beginning. I apologise to the right hon. Member for Maidenhead (Mrs May); I normally try to give her more than three minutes, but we are really under pressure this afternoon. I should point out that Members who are further down the list simply will not have a chance to speak today. They will be able to work out by the arithmetic whether or not they will have a chance to speak, so they do not have to come and ask me. It is a pleasure to call the shadow Minister, Alex Sobel.

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[Grahame Morris (Easington) (Lab)]

Quite unusually, I find myself agreeing with many contributions from both sides of the House today. I want particularly to concentrate on the aviation sector. Clearly, the aviation, travel and tourism sector is unique in this crisis. While other sectors are enjoying a cautious but steady recovery and reopening, the short-term and long-term future of this sector remains extremely uncertain. In addition, it is one of the only sectors whose recovery is not determined solely by the policies of the UK Government, but is highly dependent on the often rapidly changing policies of Governments abroad. However, given the ongoing restrictions that the UK Government are applying to the aviation sector, the sector requires a specifically tailored recovery plan, which this Government sadly have not yet afforded it. Not only is this lack of support putting employers and employees under extreme pressure; it is also putting the UK market at a competitive disadvantage, where European counterparts have provided that much needed support and comfort.

It goes without saying that the workers—almost 230,000 of them in the aviation industry—are highly skilled. They go through a complex process of training to gain qualifications, of checking and of certification. The industry is potentially facing an exodus of workers who are going to leave for more stable sectors with a more predictable recovery prognosis. Quite frankly, the industry cannot afford such skill leakages at this time. A further extension of the furlough scheme would afford employees the flexibility to be furloughed at short notice without the potentially devastating impact on their income, and would serve to protect the skillset that the sector desperately needs to retain during the recovery.



I am honoured to serve as a member of the Select Committee on Transport and as such I have become well-acquainted with the particular challenges facing the sector, and in my capacity as chair of the Unite the union parliamentary group I have closely followed the industrial disputes within the sector, including the disgraceful fire and rehire practices at British Airways and Heathrow airport and, as always, I commend Unite on its work in fighting on behalf of its members in these sectors and once again call on the Government to outlaw fire and rehire to prevent more of these cases and end this unacceptable practice.

The uncertainty that has characterised the Government’s pandemic response endures with the recent traffic light system for foreign travel. Minister, in the time I have left I want to urge you to extend the coronavirus job retention scheme to the sector; extend the furlough scheme and give this sector and the workforce the support and reassurance it so desperately needs.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I know the hon. Gentleman did not mean to say “Minister” like that; I know he meant to say “I would ask the Minister” rather than “Minister, I would ask you”, but I did not want to interrupt him because of lack of time.

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[John Nicolson (Ochil and South Perthshire) (SNP)]

Tourism is the very lifeblood of Scotland. It is no coincidence that our unofficial national motto is “Ceud mìle fàilte”—“A hundred thousand welcomes”. Scotland loves visitors and visitors love Scotland, so the covid pandemic and lockdown have been as painful for the tourism and hospitality sector as for any in Scotland—a country so geared up for them and reliant on them.

I noticed that the Prime Minister flew to Cornwall yesterday to talk to the G7 about upping its game on climate change. While I am sure the aviation industry welcomed his visual endorsement, it is yet another tourism sector that has suffered from a lack of targeted support. The French Government provided Air France-KLM with €7 billion-worth of support to help jobs. The German Government have gone way beyond the commitment level of the UK Government by also pledging €7 billion to their largest airline, Lufthansa, thus not just ensuring the survival of Lufthansa but allowing it to compete more effectively post pandemic with companies that may well be weaker as a result of the pandemic—alas, companies such as the UK airlines.

I mentioned the Prime Minister’s private jet trip to Cornwall, for which he has endured some ridicule. On the environment, as with so much else, he is a veritable geyser of hot air rather than substance. While we all recognise the importance of jobs in the aviation industry, we all recognise too the vital need for a greener transport future. The UK Government missed a major environment opportunity when they ignored the 167,000 people who signed a Greenpeace petition calling on the Chancellor to attach environmental conditions for airlines. Not only was the Chancellor’s help for UK airlines much more modest than their European rivals, but the essential environmental caveats all of us want to see for a greener future were not attached to the assistance given, nor indeed was a requirement to strengthen workers’ rights—although with the Conservatives that probably surprises no one.

Finally, I say to the Minister, and to you, Madam Deputy Speaker, that however you travel, if you are looking for a wonderful spot to go on holiday this autumn, I would recommend my constituency of Ochil and South Perthshire. I would challenge any Member to find a more beautiful piece of the world than picturesque Perthshire, glorious Kinross, and the stunning Ochil hills. Rocks, castles, whisky and extraordinary food: we have it all and you are more than welcome.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The hon. Gentleman is certainly right about beautiful Perthshire.

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[Andy Carter (Warrington South) (Con)]

As well as hospitality, leisure and tourism, the aviation sector has been one of the hardest hit industries—not just here, but across the entire globe. While we have clearly had to take tough measures on our international travel regime to stop the spread of the virus, it cannot be denied that businesses—both large and small—are being impacted as a consequence of these measures.

I thank colleagues in the Treasury and the Department for Transport for the work that they have done to support the sector to date, but the ongoing uncertainty means that there is a need for this support to continue. As has often been the case when making decisions throughout the pandemic, a balance needs to be struck. I therefore call on the Minister to continue his engagement with the aviation industry. I have spoken to him many times, and am particularly grateful to him for his work with Manchester airport, to ensure that the decisions that are taken are in conjunction with airport operators and are a reflection of the work that supply chains do with those airport operators, which rely very heavily on the involvement of that sector.

We must remind ourselves that this industry contributes billions of pounds to our economy, supports thousands of jobs, strengthens the Union and develops skills nationally. In my constituency of Warrington South, Manchester airport alone provides 3,500 jobs to local residents, and Liverpool airport, which is equally close, provides around 300 further jobs. This really is an important sector to my local economy. The airport provides those jobs directly and, through its supply chains, many businesses rely on the airport as a means of income.

I recently heard from my constituent Gaynor Welsby-West, who owns her own travel agency. She hires a number of people locally and has indeed been able to take advantage of measures such as the self-employed income support grant, but her message to me was that she needs more certainty and clarity, which will help to rebuild confidence across the travel sector. Most of us in this place understand that things can change very quickly and that we must be led by the data, but this industry needs to have an element of forward planning.

Restarting the aviation sector is a vital part of the UK’s economic recovery. Aviation, the facilities that it supports and the travel industry are crucial to the economic growth of our region: to the north, to the northern powerhouse and to Warrington. I urge the Government to take full steps to ensure that we can help this sector to recover as much as possible.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It might be helpful for the House to know that the hon. Member for Runnymede and Weybridge (Dr Spencer) will be the last speaker from the Back Benches, so anyone else who is waiting—which is not anybody in the Chamber—will, I am afraid, not be called. We now go by video link to Christine Jardine.

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[Robert Courts]

This has been a very thought-provoking and wide-ranging debate, in which many excellent points have been made. The importance to the whole country of aviation and travel was perhaps most beautifully expressed by my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), but we have heard all sorts of other points, from the importance of the supply chain, mentioned by my hon. Friend the Member for Warrington South (Andy Carter), through to the beauty of our constituencies, as stated by so many hon. Members that I dare not recount them all, although I do perhaps lean towards the points made by my constituency neighbour, my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), for fairly obvious reasons. We in this House are united, however, on the critical importance of tourism, travel and aviation, for all sorts of reasons: because of the jobs they support in our constituencies; because of the economic support they bring; because of culture; because of the businesses that operate; but above all because of people’s lives: because of the families, because of what this means to people on a real, everyday personal basis.

I thank my hon. Friend the Member for Crawley (Henry Smith) for his tireless advocacy for Gatwick airport and the sector and for his expertise. Similar points were made by my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady), the hon. Member for Luton North (Sarah Owen) and the hon. Member for Edinburgh West (Christine Jardine). My hon. Friend the Member for Crawley said that this is not just about two weeks in the sun, and I agree. Leisure is vital and travel broadens the mind of course—it increases understanding and culture—but it is also about jobs and people’s livelihoods and families. I agree with him that a safe reopening of aviation should very much be, and is, our aim.

A number of other points were made. I thank the hon. Member for Leeds North West (Alex Sobel) for his points. I had to disagree with him when he said that the Government’s response has been “lacklustre and patchy” given that Christine Lagarde of the International Monetary Fund said it has been extensive and “unprecedented” and

“one of the best examples of coordinated action globally”.

So, as he would expect, I do not agree with him about that. The tourism recovery plan is due soon, and we will be able to update him more on that when we get to that stage.

I am hugely grateful to my right hon. Friend the Member for Maidenhead (Mrs May) for her great expertise. She mentioned international standards and we continue to work with international partners such as the International Civil Aviation Organisation, the International Maritime Organisation and the World Health Organisation, as well as with bilateral partners. Of course, the announcement by the Secretary of State for Transport of the US-UK travel taskforce is hot off the press. My right hon. Friend asks why we are in the position that we are today as compared with where we were last year. Of course, there has been a change through the variants of concern and the huge success of the vaccine rollout, which we must protect. She says that we will not eradicate covid and she will remember that I referred to its being an endemic disease in my opening speech. As my right hon. Friend and others talk about the freedom that will be brought by vaccines, I can confirm that we are working to see what more we can do to open up international travel with the aid of vaccines.

I am conscious that I am very short of time, and that you are worried about the next debate, Madam Deputy Speaker. I apologise in advance to all right hon. and hon. Members. I have a detailed note of all the points they made and will write to them if there are any specific points that they wanted me to make. If I may trouble the House for 30 seconds more, I would like to say thank you to the Chairman of the Transport Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), who made a number of great points, as did my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) and my hon. Friend the Member for South West Bedfordshire (Andrew Selous). They talked about the vaccines and how they are the way out and our hope for the future.

Let me close by referring the House to my understanding and that of the Government of how difficult things are for the sector at the moment. We have a plan in place to restart tourism and aviation recovery in the short and long term. We are seeing the relaxation of restrictions as we are building out from covid. I shall end by quoting my right hon. Friend the Member for Staffordshire Moorlands. She says that life is about more than just eating and sleeping; it is about experiences and people. The hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), quoting Hans Christian Andersen, said:

“To travel is to live”.

Of course, I entirely agree with that. The tourism recovery plan, due to be published shortly, in conjunction with the forthcoming aviation strategy, will set out and reinforce the Government’s commitment to both sectors and help us to reconnect and see the world with the help of our world-beating vaccination programme.

Question put and agreed to.

Resolved,

That this House has considered the aviation, travel and tourism industries.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We almost made it by 4 o’clock. I will now suspend the House very briefly for two minutes so that arrangements can be made for the next debate.