Aviation Sector

Jim Shannon Excerpts

Thursday 10th September 2020 Commons Chamber

[Huw Merriman]

My fellow member of the Transport Committee is absolutely right. We should bear in mind what has happened to passenger numbers. Numbers in April this year compared with April last year were down by 97%. To put that in focus, that means 5,800 flights whereas we previously had 201,000. It has been an absolute collapse. The hon. Lady is absolutely right to highlight not just the impact on aviation but on communities that work in it or indeed support it from a retail perspective.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this debate forward and for giving me the chance to ask a question as well. The sector is worth some £1.9 billion to the economy of Northern Ireland. It is also very important strategically for the jobs it creates, and equally relevant to the other regions. Does he agree that there must be a meaningful sector-specific programme for aerospace from 1 November this year that recognises not only the centrality of technology and development in terms of the upcoming comprehensive spending review, but the decades-long challenge we have in improving productivity and skills retention and development. All the areas—Northern Ireland, Scotland, Wales and parts of England—must work together and focus on the Minister to get the help that we need, for all those reasons.

[Huw Merriman]

I thank the hon. Gentleman, as ever, for his contribution. He is absolutely right. Perhaps this is where I should put in my asks with the new Minister, who I absolutely welcome to the Dispatch Box. Yesterday was his first day in front of the Transport Committee and today is his first day at the Dispatch Box. It has been a busy week for him already, with more to come.

--- Later in debate ---

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare) on securing this debate and the Chair of the Transport Committee on his work, his support and his Committee’s excellent report.

My remarks today reflect the situation around Heathrow, but are not limited to it. I thank and commend the local authorities around west London, and also west London business, Brunel University and others, for their remarkable efforts to come together for local rescue and recovery plans. I also welcome the call for an aviation communities fund from local authorities, particularly to support re-skilling, business growth and infrastructure.

This is a national emergency and the impact of not acting now to secure an aviation deal and to support businesses and aviation communities in the next few weeks will be devastating. The cost to the state will be far greater than the cost of measures to get us through even to the spring, when many companies expect to see demand grow. The message from employers is clear: aviation is much more than airports and airlines. It is the aviation fuel companies, retail, baggage handling, hospitality, security, logistics, facilities management, engineering, airline catering and much, much more. Their needs are different—some are paid for each flight, some are paid per passenger, and some are paid for services such as meals on flights—but their sustained success depends on each other. It is urgent to act now, because section 188 notices are being issued as companies plan for what they expect to be the end of furlough at the end of October.

[Jim Shannon]

One of the suggestions that the unions and others have put forward is that Her Majesty’s Government could mitigate the level of redundancies to recognise that those the hon. Lady has referred to, who could be made redundant, will have been paying national insurance of some 14% and their pensions as employees, while also saving the UK benefits and redundancy payments. Her Majesty’s Government could provide some funding—perhaps 25% funding—for each employee’s wages to retain the skills and, at the same time, ensure that the business can get to January and November next year where it needs to get to.

[Seema Malhotra]

The hon. Member makes a very important point. Indeed, may I put on record my thanks to Unite, GMB and the other unions that I have been working with for all that they have done, day in, day out, to support workers and their businesses? He also makes a very important point about the retention of skills. Airport businesses have said to me that it takes six to nine months to train somebody to work in such a complex environment. Even cleaning an aircraft is as much about understanding security and counter-terrorism as it is about being able to serve all those passengers and the company. I thank him for making that point, because it links to the issue that this is about not just individual employees, but our readiness to recover when the time comes and keeping our businesses in place.

It is important to act now. Tens of thousands of jobs could be saved by a flexible extension to furlough, allowing employers to have employees on reduced hours perhaps, which will mean that families are supported to pay their bills and to stay in work. If the Chancellor and the Transport Secretary do not do this, they are simply passing a preventable problem over to an already stretched Department for Work and Pensions. In Feltham and Heston alone, there has been a 74% increase—to more than 19,000 people— in the number of people on universal credit. The local citizens advice bureau has talked about the level of inquiries it has had on debt. People are now being forced to borrow from loan sharks to pay one bill as another red letter looms.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

May I start by congratulating the Chair of the Transport Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), and other hon. Members, including the hon. Member for Erith and Thamesmead (Abena Oppong-Asare), on securing this debate on the unprecedented challenges that the aviation sector faces as a result of the covid-19 pandemic? I also wish to thank everyone in the sector who has worked so hard to keep vital services running throughout—a sentiment that I am sure is shared by all Members across the House.

          I hope that the House will indulge me if I say what an honour it is to represent the aviation and maritime sectors in government. Both sectors have a long and proud history, demonstrating the strength of the UK at home and abroad. It is also somewhat intimidating, and perhaps a little impertinent, as a new Minister with one complete day’s experience in office, to respond to a debate of such knowledge and passion. We have heard from a former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May); a former Secretary of State for Transport, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling); a former Aviation Minister, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard); a former Maritime Minister, my hon. Friend the Member for Wealden (Ms Ghani); a former Health Minister; no fewer than two Transport Committee Chairs, my hon. Friend the Member for Bexhill and Battle and the hon. Member for Nottingham South (Lilian Greenwood); and a great number of right hon. and hon. Members who have strong constituency interests and expertise. I am conscious that not all of those Members could be called to speak today, but they bring vast experience.

Heathrow alone has mobilised a large cadre of support from my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), the hon. Members for Brentford and Isleworth (Ruth Cadbury), for Twickenham (Munira Wilson), for Ealing Central and Acton (Dr Huq), for Richmond Park (Sarah Olney) and for Feltham and Heston (Seema Malhotra), and my hon. Friend the Member for Beaconsfield (Joy Morrissey).

My hon. Friend the Member for Buckingham (Greg Smith) represents three airports. He also made a very good point about veterans, which I have heard. We also have the huge experience of my deeply respected hon. Friend the Member for Crawley (Henry Smith), who spoke on behalf of Gatwick. Southampton airport has been represented by my hon. Friends the Members for Eastleigh (Paul Holmes) and for Winchester (Steve Brine). Exeter airport was ably represented by my hon. Friend the Member for East Devon (Simon Jupp), who has made a huge impact in a short time. Luton airport was represented by the hon. Member for Luton North (Sarah Owen). Newquay airport was represented by my hon. Friend the Member for St Austell and Newquay (Steve Double). Southend airport and Birmingham airport would have been spoken about, had time allowed, as would Glasgow airport, by the hon. Members for Glasgow South West (Chris Stephens) and for Paisley and Renfrewshire North (Gavin Newlands).

An enormous amount of regional expertise has been brought to the House today. In fact, the House even managed to bring a pilot into the debate, in the shape of my hon. Friend the Member for Sedgefield (Paul Howell), who brings even more expertise. The House has brought out the big guns today, as we heard in powerful speeches as we considered the importance of aviation to the UK.

[Jim Shannon]

rose—

[Robert Courts]

I will give way to the hon. Gentleman, but I hope the House will understand that I have a great deal to get through and will not be able to give way many times.

[Jim Shannon]

I congratulate the Minister and am pleased to see him in his place; I know that he has the experience and interest to take things forward in the way that we need. This might be the first request he has heard, but would he be prepared to meet my hon. Friend the Member for Belfast East (Gavin Robinson) and myself as soon as possible to discuss the importance of the aerospace industry in Northern Ireland?

[Robert Courts]

Yes, I am very happy to meet the hon. Gentleman and other honourable colleagues. Indeed, I look forward to engaging with Members from across the House on this vital sector. He does very well to remind me of the importance of the aerospace sector, which hopefully I will come to in a moment, and regional connectivity, which I will also comment on.

As Members are aware, this is an incredibly challenging time for the crucial aviation sector. It underpins our economy by unlocking trade, investment and tourism, and it provides regional connectivity, but it has been badly impacted by covid. The Government are clear that aviation will recover and will play a crucial role in driving our economy forward. We are helping it to do that by supporting it through the crisis.

The steps that the Government have taken have been truly unprecedented and have enabled airlines, airports and ground handlers to benefit from a very significant amount of taxpayer support. These measures include the Bank of England’s covid corporate financing facility, which has enabled the sector to draw down £1.8 billion in support, helping airlines’ liquidity, and the coronavirus job retention scheme, which has seen the passenger and air freight transport sectors benefiting from £283 million of support, with 56,400 staff furloughed. These support measures, as well as the coronavirus business interruption loan scheme, have all been available to the sector. Members will be mindful that I cannot comment on any commercially confidential matters relating to individual companies, but I can remind the House that the Government have been clear that we have always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future and whose failure or distress would cause disproportionate harm to the UK economy or society.

The support that the Government have provided has gone long beyond financial. In addition to the unprecedented cross-economy package of support that the aviation sector has utilised extensively, we have put in place several other practical measures to help the sector. In June, we published safer air travel guidance for passengers and operators, providing information that enables passengers to travel confidently by following the recommended measures to keep themselves and others safe. We have ensured connectivity between Northern Ireland and the rest of the United Kingdom. We have protected consumers and supported the sector by confirming that we will stand behind the air travel trust fund.

The hon. Member for Feltham and Heston asked what the engagement unit has done. Well, I will tell her: we were the first country to produce safer travel guidelines for passengers and operators; we have introduced a unique travel corridor system to support the reopening of the sector while other countries kept their borders closed; we and the unit are continuing to work to establish options for possible testing approaches, ensuring that the health of the country is protected while supporting the sector’s recovery; and we have continued to work with the Civil Aviation Authority on regulatory easing during this unprecedented situation.

As we have heard from my hon. Friends the Members for Arundel and South Downs (Andrew Griffith) and for North West Durham (Mr Holden) and the hon. Member for Caerphilly (Wayne David), these are also challenging times for the aerospace sector. The Government will be providing the sector with over £8.5 billion of support over the next three years through the covid corporate financing facility. I am particularly aware of the concerns of my hon. Friend the Member for Pendle (Andrew Stephenson) and the hon. Member for Birkenhead (Mick Whitley) about job losses from Rolls-Royce in their constituencies. We have heard a great deal about job losses and redundancies.