Thomas Cook

Debate between Grant Shapps and Vicky Ford

Wednesday 25th September 2019 Commons Chamber

[Grant Shapps]

I am very sorry to hear about his constituent’s situation. No airlines should be trying to profit out of this situation. As I have mentioned, the UK airlines in particular have really tried to assist once we got over this issue of some initial surge pricing that seemed to kick in. For the most part, they have been extraordinarily helpful, lending aircraft and cutting some of their prices. I am very concerned to hear about this KLM case.

[Vicky Ford (Chelmsford) (Con)]

We are living through a digital age, and businesses that do not adapt will struggle, but may I thank the Government for thinking about the people who have been affected here? What assistance is there likely to be for people who have bought flights or holidays that have not yet started?

[Grant Shapps]

A large number of people have bought holidays that are yet to start. If they were package holidays, they are ATOL-protected and people will simply get their money back. Those who have bought flights-only will not automatically get that money back, and will want to refer to their credit cards, debit cards, holiday insurance and, sometimes, an alternate travel agents from whom they have booked.

Finance (No. 3) Bill

Debate between Grant Shapps and Vicky Ford

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Grant Shapps]

My hon. Friend is absolutely right. This is a crazy situation. We are driving pilot training out of the UK, but English is the language of the air and should be our natural advantage. Our ambassador for the all-party group Carol Vorderman regularly reminds us that she wanted to go into the Air Force but was rejected, not through any lack of knowledge, STEM education or mathematical ability, but because she was a woman. It cannot be right that our Government are not able to address this.

I am very hopeful that the Minister will take on board clause 89, which will allow the amendment to tax legislation in consequence of leaving the EU, to do what other EU countries have somehow already managed to do—such as Spain, which does not charge VAT on pilot training. This gives us an enormous opportunity as a country to take a big chunk out of the global pilot training market, which should be, in effect, a massive export for the UK.

While we are on the VAT issue, I have one other point. This country has the ability to lead aviation into a much quieter, cleaner and more environmentally friendly future. The future of aviation eventually is to have electricity in planes—electric planes—but that will not happen without having the same dedication and enthusiasm that this Government and the previous one showed towards electric vehicles transferred to electric aviation.

This is a revolution in aviation that is coming, but it would be very encouraging if we saw the UK lead the way, and, again, this is in no small part down to how VAT is treated, in terms of not only pilot training but the inquiry, investigation, research and development that goes into electric aircraft.

The all-party group is starting a STEM aviation working group headed by a fantastic woman called Karen Spencer from Harlow College. It has the aviation STEM college at Stansted airport, where it is training 294 youngsters this year and over 500 young people next year in STEM aviation qualifications. I encourage the Minister to go and see it for himself. I believe that if we work together on this we can make aviation a much more inclusive profession, and it starts with clause 89 and what can be done under these amendments to tax legislation in consequence of EU withdrawal.

[Vicky Ford]

I too wish to speak about clause 89, which allows the Treasury to make minor amendments to tax legislation after we have left the EU.

EU tax issues are often extremely controversial. I think back to EU tax decisions I have seen in the past, such as the decision not to introduce a financial transaction tax, which this side of the House always strongly objected to but the other side would strongly have proposed at a European level. We objected to it because we felt it would have unintended economic consequences. Then there were the changes to the VAT MOSS—mini one-stop shop—situation for digital tax for small businesses. These decisions were taken without deep consultation or deep impact assessments, but were then found to have a huge number of unintended consequences. There were also the controversial issues to do with VAT on tampon taxes that sometimes came back.