Aviation Sector

Debate between Greg Clark and Huw Merriman

Thursday 10th September 2020 Commons Chamber

[Huw Merriman]

I will make a little more progress as I have only a few minutes left, and I might then take one or two more interventions. I wish, certainly from the Government Benches, to touch on the opportunity for more competition in the market. If airlines are not going to expand, and if they are to cut their workforce drastically, I would like the way that we allocate slots at our airports to be changed dramatically. If companies such as British Airways do not have the staff to continue to utilise the slots—hon. Members should bear in mind that from a legacy perspective BA has 51% of Heathrow slots—I would like those slots to be auctioned to new entrants to the market, so that we can make more money and see a bit more responsibility. Those are good free-market principles, and once we leave the European Union, we can start to make such changes. I know we are somewhat bound by IATA rules, but so is the US and it still makes its own rules. I urge the Government to look at the competition argument for slot reallocation.

Jobs and redundancies are a huge worry, and 30,000 jobs in the aviation sector have already been directly put at risk. Virgin and Ryanair have each suffered 3,500 job losses, and easyJet has lost 4,500. The Transport Committee report made clear that redundancies were inevitable with such a drop in passenger numbers, but I am afraid I must make a special mention of British Airways, our national flag carrier. Of its 42,000 staff, 12,000 jobs have been put at risk. Across the board, those members of staff were given the option of taking voluntary redundancy, and if they did not sign a settlement agreement they would lose their staff travel allowance, or they had effectively to reapply for their old jobs on terms that had not been set out. That was a big Russian roulette gamble for them and a big risk. If they did not agree to voluntary redundancy they could be looking at reductions in terms and conditions at more than 50%. For them not to even know those conditions when being given such a choice is, in my view, absolutely shoddy treatment, especially at a time when British Airways’ parent company, International Airlines Group, is looking to spend €1 billion on a new airliner, and 66% of its profits was put in by British Airways staff.

The reason there is so much suspicion about the behaviour of British Airways is because this restructuring has been tried before. This was dusted off, and there is a perception and a feeling, and I think the evidence, that the pandemic has provided the perfect backdrop for BA to start paying its staff on low-cost terms. If that is the case, why do I have pay premium for that to occur?

[Greg Clark (Tunbridge Wells) (Con)]

My hon. Friend is making a powerful speech. Does he agree that premium brands are built on people, and it is incumbent on companies that aspire to be a premium brand to treat their people in a way consistent with that?

[Huw Merriman]

My right hon. Friend is right. Across the House we expect the best from our premium brands if they are to be our flag carriers. If a company is saying to its staff, “You might be required to allow us to put you out of work for eight-weeks during the year without pay”—that is two months—“and at other times we might effectively put you on furlough without pay”, how on earth is a member of staff supposed to react?

What I would say before I take one more intervention—[Interruption.] I will not take another intervention, Madam Deputy Speaker. I see an opportunity for British Airways here. It is fair to say that the new chief executive, Luis Gallego, is a thoughtful and reasonable man who is two days into his job. I do not believe he will have the same scorched earth approach to industrial relations as his predecessor. There is still time, because these terms have not yet come out, for British Airways to do the right thing. Perhaps it will do what Ryanair has done and said, “There is a 20% pay cut across the board, for everybody. That pay will be returned when better times come.” We know that our aviation sector has better times to come. I say to IAG’s chief executive: it is not too late, you still have time to do the right thing and protect your workforce and your brand. On that note, Madam Deputy Speaker, I give way completely and allow the debate to continue.

Bombardier

Debate between Greg Clark and Huw Merriman

Tuesday 10th October 2017 Commons Chamber

[Greg Clark]

The right hon. Gentleman describes this as a tragedy; I am absolutely determined that these jobs will be saved, and I never give up. I am determined that this will not be a tragedy; indeed, as I said to my hon. Friend the Member for Lewes (Maria Caulfield), I am determined that Bombardier will go from strength to strength. On future free trade agreements, I repeat my earlier point: we want free trade agreements that provide for a rigorous dispute resolution mechanism on which we can rely. That is something we would hope to negotiate with the US. The credibility and rigour of that process is essential to our agreeing it.

[Huw Merriman (Bexhill and Battle) (Con)]

Many of my constituents, like those of the Secretary of State, work in Gatwick, and I am sure they would send their solidarity to the hon. Member for Belfast East (Gavin Robinson) for the work he is doing to support workers in his constituency. The Secretary of State mentioned that aerospace industry turnover has grown to £30 billion; with respect to Boeing’s position, can more be done to use financial leverage for the future?

[Greg Clark]

The aerospace sector is a good example of how taking a strategic approach, bringing together the industry firms with universities and research establishments, makes it attractive for small firms in the supply chain to establish themselves. That has been the basis of the aerospace sector’s success, and it is the approach we take in the industrial strategy. As the Minister of State, Department for Business, Energy and Industrial Strategy, my hon. Friend the Member for Devizes (Claire Perry) said in response to the urgent question earlier, an aerospace sector deal will build on that existing reputation and further advance the industry’s prospects.

Magnox: Early Contract Terminations

Debate between Greg Clark and Huw Merriman

Monday 27th March 2017 Commons Chamber

[Greg Clark]

This is about a procurement process that was mis-specified around decommissioning; it is not against the build costs of a future reactor. If Steve Holliday’s report includes wider lessons for the industry, we will be sure to take them.

[Huw Merriman (Bexhill and Battle) (Con)]

All public sector organisations can learn much from procurement processes and public-private initiatives, as the £3,700 a minute spent by the NHS on private finance initiatives would attest. Will the Secretary of State assure me that all public sector organisations will be given the opportunity to learn best practice from the Holliday review?

[Greg Clark]

I will. It is important when there is such a serious set of consequences for public money that the conclusions should be publicly available, and available to this House and to other Government Departments that may want to reflect on them.