Aviation Sector

Jim McMahon Excerpts

Thursday 10th September 2020 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Before I address the debate, and with Mr Speaker’s permission, in my capacity as chair of the Co-operative party parliamentary group, I want to place on record my sincere condolences to the family and friends of Chris Herries, who passed away during the recess. She served the Co-operative movement with dedication for many years, most recently as chair of the Co-operative party. She was a woman of great character and strength who made a huge contribution, and she will be hugely missed by all in the movement.

I welcome the new Minister to his place, and wish him every success in his endeavours for the industry. I thank Members across the Chamber for what has been a good debate. It has probably been a long time coming, but nevertheless the volume of interest—59 Members, many of whom did not have the chance to speak—shows the strength of feeling about the impact of this issue on local communities.

I thank my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare), the Chair of the Transport Committee, the hon. Member for Bexhill and Battle (Huw Merriman), and the Backbench Business Committee for allowing this debate to take place—part of me wonders why the Government did not use their own time to allow it to take place a little sooner. I also thank the trade union movement—Unite, GMB, the British Airline Pilots’ Association, and others—for giving a voice to workers in the industry during a difficult time. Finally, I thank my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) for his leadership in giving detailed support to the sector on our behalf.

We have heard a number of concerns that the Government need to address. First, the impact on jobs has been significant. We heard about that impact in the opening speeches, and from my hon. Friend the Member for Feltham and Heston (Seema Malhotra). We heard about it from the former Prime Minister, the right hon. Member for Maidenhead (Mrs May), and the former Transport Secretary, the right hon. Member for Epsom and Ewell (Chris Grayling). I hope he takes this in a good spirit, but if the current Transport Secretary is being given advice on performance from the former Transport Secretary, I would say we are in pretty grim territory. With respect, the issue of literally ordering ferries that did not exist gives me a bit of room to say that.

This is a serious issue, and for so long, Members have been crying out for concerted Government action to ensure that further job losses do not take hold. I am afraid, however, that the Government have been found wanting, because a lot of this was entirely avoidable. We heard in a powerful way about the impact on our regional economies if action is not taken. My hon. Friends the Members for Caerphilly (Wayne David), for South Shields (Mrs Lewell-Buck), for Garston and Halewood (Maria Eagle), for Birkenhead (Mick Whitley) and for Luton North (Sarah Owen) are all profoundly rooted in their communities, and they fully understand the impact of these job cuts.

We heard from Members across the House the strength of feeling about British Airways and the way it is treating its workforce. I wondered whether some Government Members were becoming trade union officials at some points during the debate, and it was a pleasure to hear that unity. Such behaviour has been outrageous, with loyal staff with decades of service being treated in such a way—that point was made powerfully by my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) and the hon. Member for Winchester (Steve Brine).

It stands out that England and Wales have not been given the resource to provide business rates relief to airports, as has happened in Scotland and Northern Ireland. The Government should consider that—they should consider all options—and we must ensure that local authorities in those areas, particularly where there are rates retention schemes, are fully compensated for any intervention that may follow. That is critical.

Why is this sector important? It brings £22 billion a year into the economy. It is a critical part of the fabric of our economy. It supports 1.6 million jobs. We have all seen the impact of the cuts and what they have meant for staff: 4,500 jobs at easyJet; bases closing at Newcastle, Stansted and Southend; 12,000 jobs at British Airways; 3,000 jobs at Ryanair; and 4,500 jobs at Virgin Atlantic. The list goes on, including through the supply chain at Airbus and GE in south Wales. How many more? The warning signs are there.

We all knew that aviation would be profoundly affected, particularly because of its high operating costs and seasonality—and, of course, the quarantine measures that have been brought in. It will take longer to recover as a result, so in that context, why not extend the support? It makes complete sense, not least because the sector will be critical to our recovery. This country cannot get back to economic health if we erode the foundations of our economy. It is not that difficult to understand: we need action and certainty.

I do wonder: in respect of those who have already been given notice of redundancy, had the Chancellor given more confidence by declaring much earlier that he would extend the furlough scheme, would fewer people have been made redundant? A lot of this is about confidence and how long it can be sustained, given the quarantine uncertainty and the lack of sustained financial support. And it could get worse: some estimates put the potential job losses at 124,000. That is a significant impact.

It appears that everybody is calling for a sector deal for aviation—including, by the way, the Chancellor. It was not that long ago that the Chancellor reflected that the Government would have to make such an intervention. I am sure the conversation was had around the Cabinet table. So, where is the plan that we all—including the industry— were expecting, to capture all this into a sector deal?

On the funding that has been given to airline operators, why has there not been the conditionality to protect the loyal workforce? It is on the record, in the response to my written question that was published on 3 September: there was no protection for the workforce.

Why have the Government not done more to protect the staff at British Airways? Significant public money has gone into BA, but there is silence on the Government Benches. Why did the Government give £600 million to easyJet while turning a blind eye to £174 million being paid out in shareholder dividends—and when? When the virus was at its peak. Imagine saying there is no money and coming cap in hand, but paying out that amount in dividends. Where were the conditions to protect our environment and lead the charge to reduce carbon emissions? None of this is good enough. We need better and more concerted action from the Government.

And all that comes before we get on to quarantine. Before quarantine was introduced, more than 20 million passengers came into this country without any restrictions in place whatsoever. We were one of the last countries in the world to introduce either partial or full restrictions. Then, almost as a knee-jerk action, we saw the introduction of a 14-day, blunt-tool quarantine with almost no notice, causing absolute devastation to an industry already on its knees.

We were then promised air bridges. The idea of an air bridge is that two countries have an agreement about passenger transfer from one to the other. We did not get that: half the countries on the list had restrictions on British passengers on arrival. That is not an air bridge. This is why there was confusion: people were literally booking holidays only to discover that they would have to quarantine in the other country, potentially for 14 days.

There is now a refusal to take action on a pragmatic suggestion to have testing at airports, obviously with a test five days afterwards to make sure that the risk is captured. It will never be about one intervention by itself, so it is not good enough to say, “Well, you’ll only capture this percentage at the airport, and that wouldn’t be enough”; it is about the range of interventions that, taken together, put this country in the best possible position.

The Government need to do more. There will be more job losses if they do not take concerted action and have a coherent plan. A new Minister is in place now—step up to the plate, please.