Flying Schools

Debate between Jesse Norman and Tim Loughton

Tuesday 12th September 2023 Westminster Hall

[The Minister of State, Department for Transport (Jesse Norman)]

It is a delight to see you in the Chair, Sir Robert. I thank everyone who has spoken in the debate, and I congratulate the hon. Member for Wythenshawe and Sale East (Mike Kane) on retaining his place in the shadow Transport team. It has been an interesting debate, and I am grateful to colleagues for their contributions. Aviation is a very important sector and is a matter of local importance in the constituencies involved.

Let me start by reiterating the apology that my noble Friend Baroness Vere gave to my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton). I know that she and he are to meet in a matter of days, and I look forward to that being a constructive and engaging conversation. I am delighted to respond to his concerns in this debate. As he will know, the Government regard the aviation sector as an important strategic asset. It contributes at least £14 billion to our GDP every year and supports some 230,000 jobs across all regions of the country. We recognise the sector’s importance both geographically and economically.

It is important to focus, as hon. Friends have done, on the dire impact of training operators’ failures on the students involved. There is a tremendous human cost, which has been brought out well during this debate. I have a particular sense of identification with it because I have a pilot’s licence myself, although tragically it has long since fallen out of use. It was paid for not by the bank of mum and dad but out of my own earnings, in case Opposition Members were wondering. I am the son of a pilot, the brother of pilots, the nephew of a pilot and the grandson of a pilot, so I have a very considerable personal understanding of the issues involved, as well as the ambition, inspiration and joy that flight gives young men and women across this country, as it has done for generations. I fully recognise the point that the hon. Member for Wythenshawe and Sale East made about the increasing importance of a relentless focus on improving diversity in the sector. He is absolutely right about that, in every dimension.

Having said that, what we have here, as far as I can tell, is the disorderly liquidation of three local aviation training operators. That carries with it tremendous disruption and difficulty, and it exacerbates the impact because an individual can literally turn up one day or—as colleagues’ constituents have done—receive an email saying that the institution to which they have confided their hopes, their dreams and a lot of money has gone, completely unexpectedly and without any notice, into liquidation. They may, and in many cases will, receive back none of the money that they have already contributed.

When we think about the wider picture, however, it is important to put things into perspective. May I offer the Chamber a correction to a number that has been used? In 2023—I am advised by civil servants that this is true—there were 11,675 applications for training across all licences in aviation. We are talking about terrible local impacts on a relatively small number of people so far and three failures of ATOs among some 270 registered flight schools across the UK. That is not to derogate for a second from the tremendous importance and extreme sadness and in some cases grief that has been inflicted; it is only to say that making general rules on the basis of a relatively small portion of the whole sector is something that one needs to bear in mind. When we think about the enormous sums that have been lost in some cases, we are talking about people who are in commercial licences at the very top of the pyramid and are therefore as close as one could be to potential long-term gainful employment.

I will come on later to what the CAA is doing and the suggestions that have been made, but let me just pick up on a couple of points that, rightly and importantly, have been made by my hon. Friend the Member for East Worthing and Shoreham. He is right that the pandemic had a difficult impact on the aviation industry generally and on the training sector. As he will recall, the Government made every effort, at considerable cost to the taxpayer, to support institutions, companies and individuals throughout the air transport sector. That amounted to something like £8 billion of pandemic-related support and included support through loan guarantees; support for exporters; the Bank of England’s covid corporate financing facility; the coronavirus job retention scheme, for which I was responsible; the Treasury’s furlough scheme; and the airport and ground operations support scheme. A tremendous amount of specific support for the sector was given during what was a completely unexpected and dramatic change in our business, social, personal and economic arrangements. My hon. Friend is absolutely right to focus on that; he is also right that fuel prices have gone up, which will have had the effect of driving prices upwards.

However, as a former Financial Secretary to the Treasury, I do not share my hon. Friend’s view that a cut to VAT would be the answer to the problem. There is a very simple reason for that. There are many cases of sectors in the UK economy that have called for VAT cuts. In a very small number of cases, because VAT is by design a broad-based tax, reductions have been made to levels of VAT. Very often, they have not been passed on as any kind of saving to the end user; they have gone to support the margins of the company. In the training operator business there may be some value in that, but it is the normal course of things that in a competitive private sector industry there will inevitably be organisations that for various reasons do not manage themselves effectively, or go bust for other reasons.

[Tim Loughton]

I am slightly disappointed by the Minister’s comment. This is not a huge mass industry; it is not beyond the wit of a regulator or of the Treasury to ensure that VAT savings are directly passed on, or else the companies would not be eligible. Even if the Minister will not consider this for the future, does he not think that there is a moral case for students who have lost their fees and are severely out of pocket at least to be refunded the VAT element that they paid, which has gone or may still go to the Treasury for a service that they have not received?

[Jesse Norman]

I am not making policy from where I stand; I was speaking as a former Treasury Minister about the general attitude towards VAT and the general problem that no Government of any stamp can compel a private company to pass a saving on to consumers. Indeed, whether or not savings are passed on is itself a function of the competitive conditions in the sector. I will come on to what the CAA can do later in my remarks, but although I understand my hon. Friend’s concern about the cost of VAT, let me remind him that the taxpayer will be a significant loser from the failure of these companies. I recognise a certain strength in his point about individual students being recognised; if he wishes to raise that point with the Treasury or with Baroness Vere, he is very welcome to do so. However, the general policy, as far as I am aware, is the one that I have enunciated for the Government.

--- Later in debate ---

[Tim Loughton]

I will not take up too much more of the Chamber’s time, because I spoke fairly extensively to start with, but I would certainly like to thank hon. colleagues who have brought to bear their own experiences and those of their families, particularly from the Northern Ireland angle, and from Dundee and the large and important training school that the hon. Member for Dundee West (Chris Law) spoke about in detail.

As I started by saying, this is not a localised issue; it is a UK-wide issue, and we have had three parts of the United Kingdom represented in contributions today, for which I am grateful. But I must say that I am disappointed by the Minister’s response. I fear that he spoke rather more with a Treasury hat on than with his more recent Transport Minister’s hat on. He does seem to be in a state of denial about a very real and serious problem, which is recognised by the industry. He just does not seem to acknowledge that flying schools are in a state of decline and the number of pilots that they have the capacity to produce is substantially declining.

I quoted, again at the outset, that around 2,500 pilot licences were granted in 2015, whereas this year, they are anticipated to be one fifth of that, at 500. That is not a healthy, vibrant business as it stands.

[Jesse Norman]

I do not think that that number is correct. Let me put that on the record.

[Tim Loughton]

Okay, well, those are the figures that have been provided by those in the industry. The three flying training schools that have gone under produced many hundreds of pilots a year. That represented a substantial part of the capacity within the United Kingdom. Therefore, I am afraid that this is not a localised problem, involving just a few individual schools. There are serious fears for the sustainability of many of the surviving large schools in particular.

I will not rerun all of the issues that we came up with earlier, but there are serious problems that I hope we will be able to air in more detail when we meet the Minister about the immediate problem of the hundreds of students who find themselves without a course, without the funds to find an alternative course, and without an awful lot from the CAA. I am afraid that that has been the experience, hence the request for the CAA to step up and step in rather more proactively than it has. We need an acknowledgment that students who pay fees up front are vulnerable to the flying schools going out of business, and are without the protections we take for granted when we buy goods and services or embark on educational courses elsewhere. Again, I take issue with the Minister’s challenging that this is some form of education. The clue is in the title: these are flying schools, which are training people, in the air rather than on the ground, to provide a vital public service on which this country relies.

It is not just the training schools and their immediate employees that will be suffering. It is the local economies—the economies of smaller regional airports that rely on the flying training schools for a great deal of their revenue, from touchdown fees or the purchase of kerosene. That is often the most profitable part of the business of those small airports and crucial to their survival, not least my own in Shoreham.

Contrary to what the Minister says, the implications go beyond just the three individual cases of flying training schools that have gone under in the last 10 months. I am grateful that we have had this airing of an issue that has not had a great deal of publicity but which has a great many implications, well beyond the constituencies represented today and the three specific training schools I have mentioned. I hope we can take those points further when we meet the noble Baroness, which I think is next week. I will be happy if any colleagues here wish to join me in that delegation along with BALPA. I am grateful for the time in the Chamber.

Question put and agreed to.

Resolved,

That this House has considered flying schools.

Chinese Consul General: Manchester Protest

Debate between Jesse Norman and Tim Loughton

Thursday 20th October 2022 Commons Chamber

[Jesse Norman]

I have set out the actions that we are proposing to take at the moment. Of course, as I have said in terms, we recognise the seriousness of this matter. We also recognise the seriousness with which the House takes the matter. As to the consul general’s remarks about it being his “duty”, I think they are sufficiently absurd not to require comment from the Dispatch Box.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Thank you, Mr Speaker, for the steadfast support that you have continued to show those of us sanctioned by China.

The consul general seems to have forgotten that he was in Manchester, where we allow free speech, rather than Lhasa, Hong Kong or Xinjiang, where peaceful demonstration is routinely met by violence from the authorities. This does not require “clear” messages “in due course” as the Minister has just said; it requires strong action now. That involves chucking out some of these people and posting additional police outside every Chinese Government establishment in this country to make sure that no more peaceful demonstrators are attacked in this way. Many Uyghur and Tibetan families already feel intimidated; now they can be dragged into Chinese premises and beaten up, or worse.

[Jesse Norman]

My hon. Friend is right to raise the contrast between our own rule of law and the deplorable, despicable experience that has been meted out to the Uyghurs in Xinjiang. He will know that only last week the UN Human Rights Council debated this matter on the back of an extraordinarily damning report by former President Bachelet of Chile, and that is now in the public domain.

As regards police support, I think it is a fact that the demonstration was notified to Greater Manchester police and it was on hand at the time, so it is not absolutely clear that police support, as such, is what is required. There clearly has been some kind of failure in this case, and we need to work out—if there was—what it was.

Oral Answers to Questions

Debate between Jesse Norman and Tim Loughton

Thursday 21st March 2019 Commons Chamber

[Tim Loughton (East Worthing and Shoreham) (Con)]

T2. An issue even more taxing than Brexit and the uselessness of Southern rail in Sussex is the continued congestion on the A27, and we are still to get a decision on whether the New Monks Farm development, which will include an IKEA that will attract 2 million passenger journeys a year on to that road, will go ahead. I met the Secretary of State a couple of months ago to ask for an update on further proposals to address the congestion, so when can I have it?

[The Minister of State, Department for Transport (Jesse Norman)]

As my hon. Friend will be entirely aware—he is a tireless campaigner on this issue, on which we have met—Highways England is reviewing plans for the A27 in light of feedback from the public consultation. We will hopefully have a chance to review and discuss it with Highways England and, in due course, with my hon. Friend. I look forward to it, but I cannot tell him exactly when it will be.

Oral Answers to Questions

Debate between Jesse Norman and Tim Loughton

Thursday 18th January 2018 Commons Chamber

[Jesse Norman]

I thank the hon. Gentleman for his comment. He will be aware that we have this matter closely under review, and we are continuing to discuss it with suppliers and forecourt operators. In some other EU countries, there has been no such mandate and there has nevertheless been significant take-up.

[Tim Loughton (East Worthing and Shoreham) (Con)]

11. What steps he is taking to ensure the provision of adequate compensation for passengers on Southern Rail as a result of poor service in the past 12 months.

Oral Answers to Questions

Debate between Jesse Norman and Tim Loughton

Thursday 13th July 2017 Commons Chamber

[Jesse Norman]

We got there, Mr Speaker. The £15 billion road investment strategy, published in December 2014, announced a scheme to improve the Lancing to Worthing section of the A27. Highways England has developed proposals and a public consultation will run from 19 July to 12 September 2017. From 19 July, Highways England’s website for the scheme will have key information about the proposals, including the brochure, online questionnaire, frequently asked questions, background reports and supporting information.

[Tim Loughton]

I am sorry to see that the Minister took the wrong turning, and I am pleased to see that, since I posed the question, we now have a timetable. The Minister knows how vital upgrading the A27 is to the whole of West Sussex, but there are serious concerns that the £80 million allocated to the Worthing-Lancing section—Worthing being a town of 100,000 people—will be inadequate compared with the £250 million to bypass Arundel, which has just 5,000 people. If the consultation shows that this is not satisfactory, will he, in order to come up with some really meaningful solutions, seriously consider looking at the more expensive options?

[Jesse Norman]

I am sure that my hon. Friend understands that we recognise the A27 as a strategically important corridor across the south coast, and we will look very closely at any further proposals that he wishes to make.

Oral Answers to Questions

Debate between Jesse Norman and Tim Loughton

Tuesday 31st January 2017 Commons Chamber

[Tim Loughton (East Worthing and Shoreham) (Con)]

8. What assessment he has made of the potential contribution of power generated by tidal lagoons to UK energy provision.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

The Hendry review published its report earlier this month. The Government are considering its recommendations and the issues that would arise from a broader lagoon programme, including the potential contribution of power generated by tidal lagoons. The Government will publish their response to the Hendry review in due course.

[Tim Loughton]

As an MP with a coastal constituency, I am a big fan of tidal power, and following the Hendry review it has been estimated that building some 10 tidal lagoon power stations by 2030 could generate 10% of our electricity requirements. So when considering the economics of the Swansea Bay scheme, will the Minister take into account the wider benefits for British manufacturing and technology of becoming a world leader in this clean technology?

[Jesse Norman]

My hon. Friend is absolutely right to recognise that the question must be considered in the round and not merely on the merits or no of the Swansea Bay scheme. It is the Government’s job to consider the advantages and disadvantages of tidal lagoons as a whole and to take a decision that includes not merely the financial elements, but also environmental elements, the capacity to generate power as part of a wider energy mix and ancillary elements.