Civil Aviation Bill

Jim Fitzpatrick Excerpts

Tuesday 20th November 2012 Commons Chamber

[Mr Burns]

In an increasingly globalised world, air travel is fundamental to the long-term competitiveness of the United Kingdom. However, much of the legislation that governs aviation dates from the 1980s, and it is therefore imperative for the legislative framework to be brought up to date. The Civil Aviation Bill introduces, and makes possible, reform in four key areas: the economic regulation of airports, the legislative framework of the Civil Aviation Authority, the air travel organisers’ licence scheme, and aviation security. The Bill has secured wide support, and we have worked hard to address issues that have raised concern in this House, in another place, or in the industry.

The vast majority of the amendments made since the Bill was last in this House are minor and technical, including Lords amendments 23 to 27, 29 to 36 and 44 to 71. I shall refrain from entering too deeply into the details of those amendments at this stage; suffice it to say that they are predominantly concerned with improving the drafting, clarifying the wording, removing areas of ambiguity, or excluding doubt to ensure that our policy intentions are properly met and delivered in full.

Let me deal briefly with three notable issues on which amendments have been agreed in another place: the imposition of environmental duties on the CAA, the efficiency of the CAA, and the Secretary of State’s powers to make regulations relating to the ATOL scheme.

The environmental impact of aviation has been raised during the Bill’s passage through both Houses, and the Government take it very seriously. In particular, there has been a great deal of focus on giving the CAA additional duties to take account of it. Lords amendments 1 to 4 respond to that concern by giving the CAA a supplementary environmental duty to which it must have regard in performing its airport economic regulation functions. The amendments are intended to make it clear that in conducting those functions, the CAA must have regard to the ability of the regulated airport operator to take reasonable measures to reduce, control or mitigate adverse environmental effects that are generated by the activity of the airport—and aircraft using the airport—to which the licence relates. For example, a reasonable measure could be a cost-effective energy saving investment project, such as the installation of solar-powered lighting in terminal buildings, which would lower the airport’s future energy costs. Environmental issues in this context would include noise, vibration, emissions and the effects of works carried out at the airport. The amendments also provide clarity that reasonable costs of environmental measures undertaken by licence holders may continue to be taken into account in the regulatory settlement, where the measures are in the interests of passengers and owners of cargo and to do with the provision of airport operation services.

We have always been clear that airport operators, whether or not they are subject to economic regulation, should be able to invest in appropriate environmental measures. For example, if an unregulated airport undertakes investment in environmental measures that benefit passengers, the Civil Aviation Authority will be able to look to this and approve a reasonable similar investment in the regulatory settlement at a regulated airport.

The Government do not believe that the absence of an environmental supplementary duty would prevent the CAA from approving environmental investment where that is in passengers’ and cargo owners’ interests. However, following detailed consideration of the matter, the Government decided there is a benefit to making this clear in the Bill. Certainly, the Bill should not be seen as placing a restriction on investment in environmental measures at licensed airports where they benefit passengers and freight owners in the provision of airport operation services.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I am sure departmental officials will have briefed the Minister that we debated at length in Committee whether an environmental duty should be placed on the CAA in respect of the operation of airports. There was a subsequent debate about the suggestion of the Minister’s predecessor, the right hon. Member for Chipping Barnet (Mrs Villiers), that such a measure would apply only to Heathrow. There is therefore a debate to be had about whether the environmental duty should cover all airports, or just Heathrow. Will the Minister confirm that the proposed CAA environmental duty that the Government have accepted will operate across the entire aviation industry?

[Mr Burns]

The hon. Gentleman is right: I have been extremely well briefed by some excellent civil servants, who have had to play catch-up, because I am a Johnny-come-lately to this debate as a result of the events of 4 September this year. I confirm that this duty will apply not just to Heathrow, but also to the other regulated airports of Gatwick and Stansted. I hope that reassures him.

A regulated airport should not be required to spend on environmental measures where a competitive airport would not do so, because that could create market distortions by placing greater burdens on regulated airports than non-regulated airports. Furthermore, not only have the Government sought to address these concerns through their own amendments, but on Report in another place Opposition amendments to the proposed Government amendments strengthening the wording of this duty were also accepted. I hope the House will recognise that as a genuine effort to reach an agreed position on including appropriate environmental considerations in the Bill. We are confident that we have struck the right balance on the environment, and that the CAA will be better placed than ever before to take environmental matters seriously.

On CAA efficiency, we agree with industry stakeholders that it is important to hold the CAA to account. There are a number of provisions in existing legislation that require the CAA to carry out its activities efficiently. Lords amendment 22 inserts a new clause that will provide for greater transparency and accountability in the CAA’s efficiency measures. Section 21(3) of the Civil Aviation Act 1982 already requires the Secretary of State to lay before each House of Parliament a copy of the CAA’s annual report on its performance and its functions in that accounting year. If Lords amendment 22 is accepted, in future this annual report laid in each House will include an efficiency statement by the CAA and an assessment by the independent auditors of that efficiency statement. The provisions will give the CAA a further incentive to secure value for money and to be as efficient as possible in performing its functions. I am pleased to say that the amendment was welcomed in the other place, where the Opposition commended it, saying:

“This is an excellent proposal, which will guarantee that the efficiency of the CAA will be subject to scrutiny”.—[Official Report, House of Lords, 7 November 2012; Vol. 740, c. 1062.]

I hope that the new clause will enjoy a similar level of support in this House.

Lords amendments 17 to 20 provide the Secretary of State with further powers to close down potential ways around the ATOL scheme. The Secretary of State already has the power to regulate businesses that make available flight accommodation and, under clause 94 of the Bill as introduced, will have the power to regulate businesses acting as an agent for the consumer. However, after the Bill was introduced, the Government and the CAA found possible loopholes that needed to be addressed in further powers.

The first loophole concerns a potential business model whereby a business argues that it is neither making available flight accommodation nor acting for the consumer but is instead merely facilitating making available flight accommodation. That business could then argue that it is not in the scope of either the existing ATOL regulation-making power or those in the Bill as introduced. Lords amendments 17 and 18 address that loophole by giving the Secretary of State powers to include businesses that facilitate making available flight accommodation in the ATOL scheme.

Secondly, amendments 19 and 20 give further necessary clarity to the regulation-making power in instances where goods and services sold alongside flights, such as accommodation or car hire, can be protected under the ATOL scheme. By closing potential avoidance approaches, those four amendments will help the Government meet our stated objectives of providing greater clarity for consumers about what holidays and flights are included in the ATOL scheme as well as a more consistent regulatory framework for businesses.

I have dealt with the main substantive issues covered by the Lords amendments. The remaining amendments, as I alluded to, are the majority and are technical and drafting amendments that clarify issues so that there is no shadow of a doubt about the Bill’s intentions.

[Jim Fitzpatrick]

Like the Minister, we welcome the Bill and the Lords amendments. We supported much of the Bill in Committee and continue to do so today. This is my first opportunity to welcome the new Minister of State to his position and to face him across the Dispatch Box, so I wish him well in his new role. It is probably good to be meeting on relatively friendly terms on our first outing.

We are very pleased that the Government have accepted a number of amendments. In the other place, the noble Earl Attlee said:

“The noble Lord, Lord Davies of Oldham, is very insistent and persuasive. He is clearly convinced that his amendments will improve the Bill. My Bill team manager will probably kill me, but I can accept”.—[Official Report, House of Lords, 7 November 2012; Vol. 740, c. 1003.]

Clearly, I need to take advice and lessons from my noble Friend on how to be insistent and persuasive, because we tabled those amendments, a number of which were accepted in the other place, in Committee and raised the subject again on Third Reading. We were spectacularly unsuccessful in persuading the Government to accept a single amendment, so we obviously need to speak closely to our colleagues in the other place to see how they were able to secure agreement.

[Huw Irranca-Davies (Ogmore) (Lab)]

It might be some consolation to my hon. Friend if I say to him that it might not be his powers of persuasion. It sometimes takes time for things to sink in.

[Jim Fitzpatrick]

I am grateful to my hon. Friend for his understanding of the difficulties that the coalition sometimes has, and I am sure coalition Members are also grateful for that empathy.

I will not speak for long. I know that there is an important debate on autism to follow, and that a number of colleagues want to get in on this brief debate. I refer specifically to amendments 1 to 4 and 22, which cover the environmental issues and the CAA duty of efficiency. It is disappointing that the eloquent Lord Davies was unconvincing on the issue of emissions, especially as the European Union emission trading scheme has folded. We had a discussion in Committee about emission targets. In his closing remarks the Minister might want to comment on where we go on that. Aviation emission targets were a matter of some concern, but the amendments in the other place were not accepted. There is also nothing on passenger welfare, which we pressed in a number of ways.

On amendments 1 to 4, we spent considerable time in Committee, from column 112 onwards in the Official Report, trying to persuade the Government of the merits of the environmental duties. Fortunately, they have seen some of the light. On amendment 22, at columns 343 and 344, we argued the case, for the aviation industry, that the Civil Aviation Authority should have a duty to operate efficiently.

In response to our requests, the Minister’s predecessor said:

“Sadly, the shadow Minister will think me hard-hearted, because I cannot support new clause 2”.

She went on to say:

“I can only re-emphasise that my understanding and interpretation of the Bill is that it does indeed require the CAA to act in an efficient way.”––[Official Report, Civil Aviation Public Bill Committee, 13 March 2012; c. 343-44.]

Fortunately, it seems that she was wrong, and we welcome the Government’s change of heart.

We welcome the Government amendments on ATOL and the opportunity to debate the subject, and the Government’s intentions, more thoroughly in Westminster Hall on Thursday. As I said, this is essentially a good Bill. It could have been even better, but as a result of the good sense of our noble Friends in the other place, it is at least in better shape now than when it left here, and we support the amendments.

[Mr Alan Reid (Argyll and Bute) (LD)]

I welcome the Bill and the amendments before us today, particularly amendments 1 to 4, which deal with the protection of the environment. For the Liberal Democrats it is extremely important that a duty of care for the environment is written into the Bill, and the amendments achieve that. This was an issue that my hon. Friend the Member for Cambridge (Dr Huppert) raised on Second Reading and continued to raise as the Bill went through its Commons stages, so I am delighted that the Government have listened to him and to the Liberal Democrats and tabled their own amendments in the Lords.

[Jim Fitzpatrick]

I hate to disillusion the hon. Gentleman, but we had some good exchanges with his hon. Friend, who managed to wriggle out of supporting any of the environmental duty amendments that we tabled. I would have referred to him in my speech, but I had not given him advance notice and I would not do him the discourtesy. We give credit to the other place for the amendments, not to the hon. Member for Cambridge.

[Mr Reid]

An interesting intervention from the hon. Gentleman. I discussed the Bill with my hon. Friend the Member for Cambridge before today, and I understand that he felt there were some technical deficiencies in the amendments tabled by the hon. Gentleman in Committee. It is important to stress that Liberal Democrats are in government, and we are able to influence the Government because we are part of the Government. It was the Government who tabled the amendments in the Lords. Having spent nine years on the Opposition Benches, I can understand the hon. Gentleman’s frustration. Without civil service advice, it is difficult to get an amendment right. Being on the Government Benches, Liberal Democrats are achieving successes and this is one of them. As a result of our influence, care for the environment is now on the face of the Bill.

[Mr Reid]

The amendments in question are not on the amendment paper today. What we have before us today are the amendments made in the Lords, and I would probably be out of order if I spoke to amendments that have not been tabled. The hon. Gentleman could have tabled amendments to the Lords amendments, but chose not to do so, so we cannot discuss them.

[Jim Fitzpatrick]

I may be wrong, but I doubt I am. I quoted Earl Attlee accepting amendment 2 and adding:

“My Bill manager will probably kill me”.—[Official Report, House of Lords, 7 November 2012; Vol. 740, c. 1003.]

Amendment 2 was tabled by Lord Davies and accepted by the Government. We tabled that amendment in Committee and on Report. The hon. Member for Cambridge had ample opportunity to table his own amendment, but nothing was forthcoming.

--- Later in debate ---

The hon. Member for Poplar and Limehouse mentioned emissions and referred to what has happened in the past week or so with regard to the European dimension. The UK welcomes the Commission’s proposal to, in effect, stop the clock in return for progress on global agreement in the International Civil Aviation Organisation. We think that it is right that we give the United Nations process time to make progress on a global deal, and we look forward to receiving more detail on the substance of its proposal, and sight of the formal legislative proposal, which is due, I believe, later this month. We hope that the constructive atmosphere in which Friday’s international meeting took place can continue and that the UN is able to build on the current momentum to deliver a successful and ambitious outcome next year.

[Jim Fitzpatrick]

rose—

[Mr Burns]

I am beginning to regret giving such a detailed response because it has invited an intervention, to which I am more than happy to give way.

[Jim Fitzpatrick]

I am grateful to the Minister. In the absence of the European emissions trading scheme and of an international agreement in the ICAO, but with ongoing dialogue, will the Government engage with the Committee on Climate Change to look at aviation and, for that matter, shipping emissions, because they are not incorporated in UK targets although people naturally feel that they are significant?

[Mr Burns]

We will engage wherever necessary to seek to reach solutions that are viable and will achieve the objectives set out, provided that they are the right course of action and the correct way forward.

Let me pick up the points made by the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for Bury St Edmunds (Mr Ruffley), because I think that I dealt with the matter raised by the hon. Member for Hayes and Harlington (John McDonnell) in my intervention. [Interruption.] Well, I thought I did; I hope that he will be generous so that we can make progress. As the hon. Member for Strangford and my hon. Friend the Member for Bury St Edmunds will know, the context for dealing with the environmental issues surrounding Heathrow, Gatwick and Stansted, for example, are all fully dealt with in the Bill.

I felt at times that the hon. Member for Strangford was going a little further on to the wider issue of hub airport status. I have to say to him, in the nicest possible way, that that is obviously beyond the scope of this Bill. However, I hope that he will take reassurance from the fact that in order to look at the whole area of the future of aviation policy, to meet our commitments and to protect our position as the significant hub airport presence for western Europe, we have set up, under my right hon. Friend the Secretary of State, the Davies inquiry, which will look across the range at the best way forward on aviation policy, the best way to deal with capacity and connectivity issues—