European Union (Withdrawal) Bill

Lord Balfe Excerpts

Committee: 6th sitting (Hansard - continued): House of Lords
Monday 12th March 2018 Lords Chamber

[Baroness Randerson]

My Lords, I first raised this issue in the autumn of 2016 and have done so repeatedly since then, even in a Private Member’s Bill on the Single European Sky. It is important because there is no fallback position for aviation; there are no WTO rules that we can rely on. If things do not go right, there is simply a blank in which planes will be grounded. Along with them will be the passengers and very high-value freight which goes by air.

I do not mention these concerns on my own initiative; they have been put to me by people in the aviation industry from across the world, because our whole economy stands on the shoulders of our air transport industry.

All along, the Government have expressed confidence that this will all work out fine on the night, but there has not been any official commitment either to remaining in EASA or the Single European Sky. Despite the commitment made by the Prime Minister last week there has been no official commitment, so these amendments give the opportunity to provide that. With the best of intentions, we could find ourselves at an impasse, and this is not just a little local difficulty between the UK and the EU; it is also very much about the US. We rely on the EU/US open skies agreement as a member of the EU, and we will cease to be a member of it when we cease to be a member of the EU. It cannot just slot into place later because airlines sell tickets a year in advance. Indeed, they are already selling tickets for a period of time when they cannot be absolutely sure that the planes are going to fly. There will be an awful lot of airline tickets on sale from next month for a year hence—some have already been sold, as I say.

There are already stories—for example, in the Financial Times last week—that early talks have not gone well. The Minister denied that and I am very pleased to hear those words, but in the past the United States has not been easy to make aviation agreements with. Opening up US aviation to both EU and UK flights has been a problem in the past. There are potential issues over the continuation of anti-trust exemptions, which allow airline alliances to set fares and share revenue. Any new deal has to allow for the pattern of ownership of our own major airlines, which have very big foreign shareholdings, especially IAG, of course. In the short term it is important that we remain in the open skies agreement during transition, or at least that we are treated as if we are within that agreement. In the longer term it is clearly best if this continues beyond transition.

Briefly on EASA, at any one time half the aircraft in the skies above Britain are not UK registered, so we need to remain the dominant influence over aviation security and safety in the EU and beyond. We have been a major force so the Prime Minister’s words, as I said earlier, were welcome last week. We need full, official government commitment here in legislation: not just to being associate members of the EASA or observers, but to being full members because there is consensus in the sector that it makes no sense to create a national regulator. It is essential that we remain fully integrated with EU rules and systems. The EU has brought huge benefits to passengers—lower fares, more destinations and greater passenger rights and compensation. We must remain part of that scheme. We must also maintain the environmental benefits it has brought.

[Lord Balfe (Con)]

My Lords, I shall make a brief intervention and ask a couple of questions. I realise that it is the Minister for DExEU replying to the debate rather than the Minister for Aviation and I declare my interest as vice-president of BALPA, the pilots’ union. There is a lot of concern and it is felt that it would be helpful if we could have a clear commitment to retain membership of the single sky agreement and the aviation safety agency. I ask the Minister, possibly through his colleague, to write to those of us who are taking part in this debate to tell us whether it is government policy to continue with this membership. If it is, what steps have they taken up to now and can they arrange some way of keeping those of us who are interested abreast of the issue, other than by intervening on Bills? I know that this issue moves ahead. We have had very good relations with the Minister. This is in no way a criticism but rather a request for dialogue to be opened, possibly in writing and possibly with the letters to be deposited in the Library for anyone else who is interested.