Leaving the EU: Aviation Sector

Karl Turner Excerpts

Wednesday 31st October 2018 Westminster Hall

[Karl Turner (Kingston upon Hull East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, and I pay tribute to my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) for securing this important and timely debate. His excellent speech set out the current and future benefits of the aviation sector, as well as the possible risks. He said that more than 25,000 jobs—a staggering number—are directly supported by the Manchester Airport campus in his constituency. That is remarkable, and I pay tribute to Manchester Airports Group for its great work.

Labour believes that a strong aviation sector is crucial to the UK’s status as a global, outward-looking nation, and it is even more important following our decision to leave the European Union. As we have heard, Britain has the largest aviation network in Europe and the third largest in the world. It creates a million jobs, brings in tax revenues, and is vital for importing and exporting trade.

We are now just five months away from leaving the EU, and as the days pass, the risk of a no-deal Brexit becomes greater. Regrettably, it seems to be becoming more likely by the day that we might leave the European Union without a deal. Let us be clear: a no-deal Brexit would be a disaster for the UK aviation sector—indeed, the Government’s aviation technical notices relating to no deal confirmed that crashing out of the EU without a deal would be a total disaster for the UK’s aviation sector. It would have a serious impact, and that cannot be dismissed as scaremongering. It is crucial that the Government now prioritise securing a deal for the aviation sector, and provide the industry with the certainty it needs in the run-up to March 2019 and beyond.

Labour has always maintained that the aviation sector should have been the first priority for the Government in their negotiations with the EU. Despite that, when the Transport Secretary addressed the annual conference of the Airport Operators Association on Monday, we heard that the Government are still negotiating future arrangements for air services with the EU. Indeed, it is worse than that because, as I understand it, the Transport Secretary has not had a single meeting with one of his counterparts from the 27 European member states to discuss what would happen if we are in no-deal territory.

Ministers might like to boast that 95% of the Brexit withdrawal agreement is done, but that is completely irrelevant as there can be no agreement unless everything is agreed—a point reiterated time and again by the Prime Minister—and that includes reaching a suitable agreement on aviation. Consumers and businesses have benefited from the UK’s global connectivity and access to markets, and the Government must build on that as we leave the EU. I would be grateful if the Minister could set out what steps the Government are taking to improve our global connectivity through aviation, post Brexit.

Labour believes that any new service agreements for the aviation industry following Brexit should seek to replicate existing arrangements as much as possible. First, and foremost, we must retain access to the Single European Sky air traffic management system. Since 2007 we have enjoyed an open skies agreement with the United States of America which, as the hon. Member for Central Ayrshire (Dr Whitford) made clear, includes 16 other countries. That must also continue.

Through our membership of the EU we are members of the European single aviation market, which allows airlines based in Britain to operate throughout Europe. There is no World Trade Organisation fall-back for the aviation sector, which means that unless the Government negotiate a deal there will be no legal right to operate flights to Europe. It is no good saying continually that everything will be all right on the night. The sector is worried, and it is crucial that we retain our status as a full and engaged member of the European Aviation Safety Agency. Alongside France we have been a key contributor to the development of European safety regulations and rulemaking, and nobody wants the UK to lose that influence. UK air passenger rights following Brexit should not be fewer than they currently are, and that is particularly important for disabled travellers and passengers with reduced mobility.

The entire aviation sector in the UK has developed through EU law, and it has led to cheaper fares and greater choice for consumers. Our current deal has given us greater consumer rights, and passengers can claim compensation for delayed and cancelled flights. We are members of the European Aviation Safety Agency, which deals with the safe operation of aviation. All that could easily be put at risk if we leave the EU without a deal. Will the Minister say what steps the Government are taking to ensure that we will have the same air passenger rights once we have left the European Union? Overall, the Government’s shambolic handling of the Brexit negotiations could lead to thousands of skilled jobs being lost in the aviation sector unless they change tack and get a grip now.

[Mr Philip Hollobone (in the Chair)]

If the Minister could conclude his remarks no later than 3.57 pm, that will allow Mr Kane time to sum up the debate.

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

I am grateful to you, Mr Hollobone, and rejoice in your chairmanship of this debate. I am also grateful to the hon. Member for Wythenshawe and Sale East (Mike Kane)—an old and much-loved colleague of mine from the Treasury Committee—for securing this important debate on the effect of the UK leaving the EU on the aviation sector.

I need hardly say that this is a matter of great importance to the Government, and a topic on which there is a keen focus on achieving our desired outcome. The hon. Gentleman asked for reassurance, and I can tell him that aviation remains a high priority for the Government, just as it is for him. I point out to him and to the hon. Member for Kilmarnock and Loudoun (Alan Brown) that this country is far from not having an outward-looking industry—nothing could be further from the truth. We are proud of the aerospace companies. We know that, like all global businesses, they constantly have to manage change in their political circumstances, and we are pleased that there has been no shortage of capital investment in the UK.

The hon. Member for Strangford (Jim Shannon) is no longer in his place, but as he said, not only has there been new investment such as that in Bombardier but, as he put it, we can expect good times to be around the corner, based on the economic flows that he has observed. He is right about that, and we have projects such as the joint investment with the MOD and RAF Lossiemouth, and the Airbus Wing Integration Centre in Filton—my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) has worked closely on that, alongside his other work with Airbus—and the opening of Boeing’s first European manufacturing facility in Sheffield. Those are not the actions of companies that are worried about the UK, or about the safety of their investment and the possibility of it growing in the aviation sector—far from it—nor are they the actions of companies that are concerned that the UK might be, as the hon. Member for Kilmarnock and Loudoun suggested, turning in on itself. On the contrary, they show that the aviation industry is confident about Britain’s place in the world post Brexit, and rightly so.

This is a priority for us and, as the Government’s White Paper sets out, we are seeking to secure an agreement that maintains reciprocal and liberalised—I emphasise the word liberalised—aviation access between and within the territory of the UK and the EU, alongside UK participation in the EASA system. There is something of a contradiction among the things said by Opposition Members, in that they are perfectly happy to recognise that these things are matters that go down to the last minutes, because only when everything is agreed is anything agreed, but at the same time they are desperate for there to be more progress. In many cases it is the EU which is inhibiting progress on this for negotiating purposes.

[Karl Turner]

Considering that we are five months away from leaving the European Union, does the Minister think that everything is in place? Is he confident that there will not be any major problems, such as those that have been spoken about by hon. Members today?

[Jesse Norman]

I take all comments and points made by hon. Members across the House with great seriousness, but all I am doing is pointing out an inconsistency in the Opposition’s position. The Government remain confident that an agreement will be secured. Not only that, it is interesting to see that there appears to be increasing confidence of that within the private sector as well, as the remarks of several chief executives of airlines have recently made clear.