Air Travel Organisers’ Licensing Bill

Debate between Gavin Shuker and John Hayes

2nd reading: House of Commons
Monday 3rd July 2017 Commons Chamber

[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

The Minister looks delighted to give way on that specific point; I am sure he will want to say more about it. First, a correction—Luton airport is in the constituency of Luton South. My hon. Friend the Member for Luton North (Kelvin Hopkins) and I have many a competitive conversation about it. On the £2.50 levy, I understand that there is a significant surplus in the fund now. Is the Minister confident that, under the new arrangements, where airlines may look around European member states in considering the best regime into which to pay, £2.50 is competitive and the right figure to charge?

[Mr Hayes]

First, I apologise for ascribing Luton airport to the constituency neighbour of the hon. Gentleman, and not to him. As he will know, in a previous ministerial job, I was able to visit Luton South and to enjoy his hospitality there alongside the local authority. Luton is playing a bigger part in this debate than we may have expected; both Luton Members have contributed to it. As he will know, the fund is administered by the CAA, with trustees appointed by the Secretary of State. It builds up and is invested accordingly.

As we speak, there is about £140 million in the fund. If a major holiday company collapsed, it would be essential that there were sufficient moneys in the fund to cover that collapse. That could happen more than once in a short period; that is not inconceivable. The critical thing is that the fund is never short of money. The guarantee is that we will protect consumers and get people home safely from perhaps far-flung destinations and that they will not lose out as a result of things that they could not have anticipated or affected.

If it is helpful, I will be more than happy to provide the whole House with a further note on how the fund has changed and grown over time. I have mentioned what it is comprised of. I think it would be helpful for me to make available to the Library, and therefore to the House, more details of the kind the hon. Gentleman has asked about. It will help to inform further consideration of these matters as we move from Second Reading.