Civil Aviation Bill

Jackie Doyle-Price Excerpts

Monday 30th January 2012 Commons Chamber

[Jackie Doyle-Price (Thurrock) (Con)]

I should like to associate myself with the comments made by colleagues following the maiden speech of the hon. Member for Feltham and Heston (Seema Malhotra). She gave the most powerful exposition of Heathrow’s economic contribution that I have ever heard. When so many people are calling for a brand new hub in the Thames estuary, it is worth bearing in mind that for every person who finds that overhead air traffic disturbs the ambience when they are enjoying a gin and tonic, there are many others, including her constituents, who depend on Heathrow for their livelihood. I hope that as we consider the future capacity of aviation, we will be able to have a mature debate on the economic consequences of moving an airport and of airport expansion, as well as on the environmental consequences.

The Bill has been a long time coming, and I was slightly amused by Opposition Members’ complaints about the so-called lack of scrutiny, given that it has had a gestation period of some six years. It contains some new measures, but we shall have plenty of time to consider them in detail during its passage through the House. They lend themselves to being added to the Bill, and many have already been fully considered by the previous Government as well as this one. It is also worth noting that although a number of airlines have raised concerns about the Bill, the industry generally supports this package of reforms.

The Bill will put the regulation of civil aviation on a modern footing. A great deal of effort is often put into drawing up systems of regulation that are fit for purpose at the time, but they generally get parked and are not looked at again until something goes wrong. In this case, nothing has gone wrong, but it has become patently obvious that this system of regulation is not fit for purpose, as it is the best part of 30 years old. It was drawn up at a time when the aviation industry was rather different from the one we have now. In the intervening period, we have witnessed massive growth in the number of airlines, a greater propensity to fly among business travellers and consumers alike, and the emergence of an industry characterised by much more aggressive competition. Those changes in the marketplace have created a need for a different kind of regulator from the one provided by the current regime.

A key aspect of the existing system is the duty to secure adequate provision of services, but that task is clearly redundant, given the amount of competition that now exists in the industry. Better and more efficient regulation means removing those responsibilities, which will not deliver the efficient marketplace that we need, and ensuring that the regulator focuses instead on those duties that will do so. Putting the interests of the air passenger first will achieve that, as it will ensure that the market works effectively and not to the disadvantage of consumers.

I welcome the fact that at the heart of the Bill are reforms of the duties of the Civil Aviation Authority to ensure that protecting the interests of the air passenger will become its primary purpose. This amounts to a simplification of the previous regulatory structure, which was much more about economic regulation. At the core of the new regulator’s functions is the need to ensure that the market works effectively and to the benefit of all passengers.

By focusing on outcomes for passengers, rather than on the provision of services, the Bill provides a framework that is more likely to deliver a better customer experience. I speak as someone with a background in regulation from a consumer perspective. Many other methods of regulation could learn from this model. It has always been my view that if we get the focus on the consumer right, many other benefits will follow. That is not to say that we should throw away all models of economic regulation, because the structure of the market must obviously be taken into account, and regulatory action is still required to ensure that providers do not act as cartels. However, we need to look at the consumer’s experience from start to finish.

Central to the Civil Aviation Authority’s new consumer focus will be its duty to promote better public information. I reiterate the point made by other colleagues that information is all, and that transparency is the best way to empower consumers to look after their own interests. The provisions will give consumers a one-stop shop where they can find information and compare airlines and airport providers, enabling them to make a more informed choice.

My hon. Friend the Member for Amber Valley (Nigel Mills) talked about booking his holidays, and I have to say that I have had similar experiences. People tend to look at the headline price, but that does not always tell us the whole story. The most obvious example of that is Ryanair, but of course we all know that we are going to get screwed over when we fly with Ryanair. The reality is, however, that we need to bear in mind the cost of parking the car, the cost of dropping off and the cost of travelling to the airport. When we do a straightforward search to book our airline tickets, we are never going to get the whole picture.

We need as much information as possible to be presented to us in a user-friendly way, although it will be a challenge for the CAA to provide it in as user-friendly and easily navigable a form as possible. A similar example is the Financial Services Authority, which draws up massive amounts of consumer information. It provides comparative tables allowing us to compare 400 types of mortgage or 1,000 insurance products, but almost no one knows that they exist, and very few people access them. The new duty on the regulator is welcome and will be valuable to consumers, but it will be of use only if consumers know how to access it and navigate their way round it.

Shifting the focus on to consumers will make the experience of passing through an airport much more enjoyable. The speed with which consumers can disembark, collect their baggage and get through passport control makes a great deal of difference, and I hope that that kind of information will also be properly communicated by the regulator. It goes without saying that if someone knows that their experience in a particular airport or with a particular airline will be easy, they are much more likely to choose that option. As the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) will know, using London City airport is a delightful experience. People can turn up within 10 minutes of their flight, get through the airport, get on the plane and take their baggage with them. It is a much more user-friendly experience than at any other airport. People will pay more for that advantage, even though they might not get the best quality aeroplanes. Information is very important for helping people to make an informed choice.

As for the tools and penalties the regulator will need to perform the job, we have already talked about information, but that will get us only so far. When the regulator has to intervene because the service is not good, it needs to have appropriate tools and penalties. I see that the Bill will mean the transfer of some powers from the Secretary of State and from the Competition Commission. That is welcome, but in this new system of regulation it is important that all players understand their own obligations.

As we have seen elsewhere, when multiple bodies are involved in regulation, there is often some overlap and, indeed, some underlap, as it is not quite clear where the buck stops. We saw that happen with catastrophic consequences in the financial services industry and in health. I hope that the Department for Transport will provide much more clarity on who should act, when, why and how so that it is absolutely clear where the buck stops for each part of the responsibility under the new system.

Serving the customer is central, and I have already mentioned information issues. I welcome the provisions for the CAA to produce more information about the environmental consequences of aviation. As I said, this will become more important as we look at the options for future airport capacity. It is clear that there is a need for expansion to serve London and the south-east. When so much noise is being made about the potential for a new hub airport in the Thames, I hope that the CAA will pay due regard to the environmental consequences of such a development, as well as to the economic consequences for airports such as Heathrow. I am glad to see the hon. Member for Feltham and Heston back in her place.

On behalf of colleagues in north Kent and south Essex, I have to say that the case made so far for a Thames estuary airport is weak. The only strong argument I have heard is that it is beyond the boundary of Greater London. For me, that is not sufficient justification for the creation of a new airport hub.

I am pleased that the new CAA will have to consider the health and safety impacts, as well as measures taken with a view to reducing, controlling and mitigating the adverse environmental effects of civil aviation across the UK. Once it takes forward these responsibilities, we may end up being able to have a much more mature debate about these issues than the present one, which frankly tends to bring out the worst nimbyish tendencies in all of us.

Finally, I would like to say something about the provisions that will transfer the security regulation powers from the Government to the CAA. I strongly believe that the CAA is better placed than the Department to ensure that airlines and airports are discharging their responsibilities effectively, although it is of course important that Ministers retain responsibility for overall policy. This move clearly makes financial sense, as I believe it will save the taxpayer some £25 million. That cost will ultimately be borne by consumers, but as it works out at 2p per user, I think it is one that the consumer can afford to absorb.

To summarise and conclude, aviation policy and provision are essential ingredients in the competitiveness of a 21st century economy, and it is clear that some of our competitors are making more progress than the UK in this regard. If we get our aviation policy right, there will be clear advantages for jobs and growth. An appropriate system of regulation fit for the 21st century is central, so I am pleased to support the Bill.