Air Traffic Management and Unmanned Aircraft Bill [HL]

Lord Berkeley Excerpts

Committee stage & Committee: 1st sitting (Hansard): House of Lords & Committee: 1st sitting (Hansard)
Monday 10th February 2020 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, Amendment 1, moved by the noble Baroness, Lady Randerson, seeks to clarify the phrase in Clause 2(2)(c)

“another person with functions relating to air navigation.”

I shall start by addressing that phrase and then move on to the other parts of airspace modernisation and how the powers to which it refers might be used.

To give a little background, Clause 2 gives the Secretary of State the power to direct any person involved in airspace change, following consultation. Consultation will come up a number of times today; this is a very consultative process, as indeed it must be to work. After consultation with that person, the Secretary of State can direct them to do three things: first, to prepare or submit an airspace change proposal, an ACP, to the Civil Aviation Authority, the CAA; secondly, to take steps to obtain approval to an ACP that has already been submitted; and, thirdly, to review the operation of an ACP after it has been approved. Those are the three things that the Secretary of State can direct.

In Part 1 of the Bill, any

“person involved in airspace change”

is defined as, again, three things. First, they could be an airport operator, and one might expect that in most cases the airport operator would indeed be involved in putting forward the ACP or making sure that it progresses; secondly, they could perfectly well be an air navigation service provider; and then there is that third term to which this amendment relates—it is a probing amendment to understand what sort of person

“another person with functions relating to air navigation”

could be. For example, they could be part of an existing body such as an industry association or an airspace change consultancy brought in after the consultation, perhaps, to look at how the process of the ACP is working. Or they could be from a new body set up to deal with a specific ACP or a group of ACPs. One might imagine a circumstance in which a group of airports set up a new ACP in order to help another airport to deal with its airspace change.

The reason behind the third part of Clause 2(2) is to provide flexibility, because it may be—and one can imagine circumstances in which it would be—that the person involved who was the subject of the direction was not an airport operator or an air navigation service provider. In all this, though—and again I hope that noble Lords will recognise this today—these powers are to be used only as a last resort. We hope that the process will be collaborative and involve various elements working together in order to achieve the positive change that we need. I hope I have explained the reasons why this flexibility is needed. It is that that third person may not be one of the other two but may nevertheless be quite capable of taking forward an airspace change.

[Lord Berkeley (Lab)]

I am very interested in what the Minister said about who might be involved in seeking changes. Yes, it could be done to help a small airport to get better access to its flights or controls, but it could be done to keep someone away. In other words, it could be done to prevent competition. My worry would be how much it would cost for a small airport to oppose or indeed promote these things if those circumstances arose.

[Baroness Vere of Norbiton]

I think we will get into the detail of how airspace change proposals work in the next group of amendments. It is the case that there is a master plan that is overarching—I think hand gestures are needed to describe this—and covers the whole of the south of the country. Within that, there are then 17 airports that may need to make airspace change proposals to a greater or lesser extent in order to fit the master plan. When an airport, be it small or large, puts forward its airspace change proposals, those are considered by the CAA according to the criteria as set out in Section 66 of the Transport Act 2000.

[Lord Berkeley]

Section 70.

[Baroness Vere of Norbiton]

The noble Lord has just corrected me that it is Section 70, and he is absolutely right.

Within all this, it is the CAA that will ensure that airspace change proposals are appropriate. It is not the case that one airport will be capable of coming along to try to duff up another, because both airspace change proposals will be considered as they move through the system. The CAA will look at them, and equity between the two will be one of the important considerations that it will look at.

I turn back to the reasons why this change is possibly not needed. Airspace modernisation, as the noble Baroness, Lady Randerson, mentioned in her opening remarks, is a complex and multifaceted programme. There is the master plan, which will sit over the entire new airspace design, but that makes up just two of the initiatives out of the 15 that comprise the airspace modernisation strategy that has been set out by the CAA. For example, one of the initiatives, as is rightly also set out in the Transport Act, is that the use of airspace has to be equitable for all users. The Government are looking to ensure that airspace is not controlled—I do not want to say “unnecessarily” because I do not think it would be fair, but there might be controlled airspace that could become uncontrolled and therefore allow a greater number of users to use it. I am thinking particularly about the general aviation field, and I certainly know that gliders have sometimes had difficulties because for them uncontrolled airspace is much easier to use.

However, any change in airspace will always go through a process, and that process will have safety as its absolute priority. I think noble Lords will be aware that the number one thing that we have to do when we look at airspace is ensure that planes are safe to fly. It will also take into account the airport’s particular growth plans, so an airport could not turn around and say “No, I’m really sorry—I need that back”. These are fairly long-term decisions and, as I am sure the noble Baroness is aware, the process takes a significant time. However, it is also consultative so there will be a consultation process not only with the general aviation sector but with the airport itself; it will be able to give its reasons why it would like to maintain that airspace as controlled, if indeed that is what it wants to do.

The noble Baroness, Lady Randerson, also mentioned the costs of airspace change proposals. I believe that they can be quite costly, and we will come on to them in a later group so I probably will not address them now. However, I hope that on the basis of my explanation she will agree that Clause 2(2)(c) should remain part of the Bill and feel able to withdraw her amendment.

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[Lord Kirkhope of Harrogate]

My Lords, I apologise for misreading my Order Paper and trying to head into areas of amendments before I should be allowed to: I thank my noble friend for correcting me. However, on this amendment, there is a strong case for some compensation to be allowed for smaller airports—in particular, those that are compelled to make changes. The amendment is unclear on whether this covers just the cost of making the change, however that is defined, or the negative commercial impact as a result. That is a totally different area but one that I know is of great concern to smaller airports.

Amendment 10 awards compensation for an excessively high financial burden, as the noble Baroness just said. That is also extremely difficult to assess. I think one would have to be more specific than a “high financial burden”, because there is a lot of argument there. The principle, however, seems right, because whatever we decide to do or is decided, smaller businesses should not be forced to foot large bills for airspace changes forced on them by the Government and may be forced on them through government as a result of pressures from those who can better afford the costs associated with such changes.

[Lord Berkeley]

My Lords, the two points raised by the noble Lord, Lord Kirkhope, and the noble Baroness are well illustrated by Newquay Airport in Cornwall, where I live. I use the airport occasionally. It is subject to a public service obligation which the county council has negotiated to ensure four return flights a day between Newquay and a London airport. It has been very successful. There has been recent discussion, as noble Lords will know, to change the London location from Heathrow back to Gatwick, for reasons we do not need to go into today. The point is that Newquay has a few flights going to other places in the UK, on the continent and in Ireland. It is also the base for Richard Branson’s latest idea of getting to the moon—taking passengers there, or something—which may be the subject of a government grant. It is odd, but if it was required to make changes to its airspace because of some other reason, the airport would be in severe financial difficulties. That is why it has been given a PSO: because it is an important part of improving the transport between Cornwall and London.

One can challenge or disagree with some of the text of the amendment, but the principle is there. If, when she comes to respond, the Minister does not like the wording, perhaps she can go away, have some discussions about it and come back with more acceptable wording. We should hold on to the principle of a small airport not being put to severe financial difficulty because of something over which it has no control.

[Lord Craig of Radley]

I have no particular difficulty with the idea of compensating somebody who is being adversely affected by a decision for larger national reasons, but going back to the concern about the Ministry of Defence interests, let us suppose that a Ministry of Defence interest is such that it needs to be accepted. Looking ahead, the Armed Forces will have drones as well as manned airframes. Their needs may be quite unusual compared with the normal. In those circumstances, a decision would have to be taken either in the interests of the Ministry of Defence or the commercial civilian operator concerned. I am not clear how such a decision would be arrived at. Perhaps, once again, the Minister will be able to make it clearer to us all where the Ministry of Defence fits into this type of decision.

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[Baroness Bloomfield of Hinton Waldrist]

I acknowledge the noble Lord’s point. This argument is not all about efficiency. I will finish my points.

At this early stage, if the airport operator expressed concerns that it did not have sufficient funding to proceed with a particular ACP, we would expect the oversight team to work with the operator to suggest alternative solutions. We expect that this could include an alternative sponsor paying for the changes. The CAA oversight team could help identify and seek support from another ACP sponsor—most likely to its benefit—whose own ACP plans depend on the change in question. An example of this is Heathrow Airport, which currently provides assistance to various smaller airports to bring forward their ACPs in order to ensure that its own ACP can be developed, due to the interdependence of their airspace.

As for alternative funding support, the CAA has created from its determined costs an airspace modernisation support fund of £10 million for the 2020-25 regulatory period. The airspace modernisation support fund, ASF, is intended to be utilised to address projects that are important to the success of the airspace modernisation strategy where there are no other appropriate mechanisms for the recovery of these costs. It should support AMS deployment, including activity critical to the implementation of the airspace master plan that ACOG has been commissioned to deliver under the AMS. There is therefore the potential to apply for funding support, which would need to be considered alongside other funding bids.

As a last resort the Government could consider, on a case-by-case basis only, whether grant funding under Section 34(1)(b) of the Civil Aviation Act could be provided to an airport directed to bring forward an ACP that resulted in adverse financial impacts. This funding would be subject to Treasury approval and offered only if it proved absolutely necessary. We consider that offering government funding on a wider basis would go against the “user pays” principle.

I assure noble Lords that, due to the steps I have outlined, we do not expect a situation to arise in which an airport operator would be put in financial difficulty by being directed to progress an ACP where there is no positive business case for one. In extremis, if this were to happen, under Section 34(1)(b) of the Civil Aviation Act 1982 the Government would be able to provide compensation to an airport for the losses it has incurred, but this would still be considered on a case-by-case basis.

[Lord Berkeley]

I was interested when the Minister gave the example of Heathrow Airport being prepared to provide the funding necessary for a small airport to propose changes. Heathrow Airport does it not exactly on a charitable basis but for its own benefit. It is a commercial outfit. It tried to do this in the last year with the flight I spoke about earlier from Newquay to Heathrow. The county council said: “We don’t want that. We’d rather stay at Heathrow than be transferred to Gatwick.”

The Minister is looking a bit bemused. My point is that Heathrow offering somebody else the funding to help make these changes is not exactly independent. It will be in its commercial interests, so it should probably be ignored.

[Baroness Bloomfield of Hinton Waldrist]

I thank the noble Lord, Lord Berkeley, for his intervention. I think he was talking about aircraft slots in that instance, which is not the subject of this debate. Also, Newquay is not subject to the ACP in the same way as other airports; it is outside the master plan.

I hope I have been able to reassure noble Lords that this amendment is unnecessary. We do not anticipate that a situation of loss will arise. Based on these points, I therefore hope that the noble Baroness feels able to withdraw the amendment.

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[Lord Berkeley]

My Lords, I support the views of my noble friend Lord Tunnicliffe and the noble Baroness, Lady Randerson, on this amendment. It is extraordinary that the air sector is the only one that does not pay any kind of fuel duty. I think that goes back to the Chicago convention a very long time ago. Air passenger duty was introduced as a way of trying to compensate. We can see how important the Government think that is, because they have given Flybe—which I keep going on about—a holiday from it, to enable it to survive. For me, the policy implications of this are all wrong. The Government do not really care about the environment. They want to keep this company alive because Virgin would not be able to save it and it would be a disaster. This might not be the right place to cover this important issue, but this is an aviation Bill and we need to see it addressed on a consistent basis, so I support the amendment.

[Baroness Vere of Norbiton]

My Lords, I thank the noble Lord, Lord Tunnicliffe, for tabling the amendment. I agree with him—and, I am sure, with all Members of your Lordships’ House—that the fight against climate change is one of the most pressing issues of our time. It is absolutely right that we continue to highlight emissions, to publish data on them and to plan for their ongoing reduction. The Government already publish emissions data for domestic and international flights. The Department for Business, Energy and Industrial Strategy reports annually on these greenhouse gas emission statistics. The statistics cover all sectors of the economy, including transport. Those for 2018 were published just last week and are readily available online. I will happily share a link so that all noble Lords can see them.

Within the statistics, individual transport modes—including aviation—can be identified. Domestic aviation is reported on separately from international aviation, because the methodologies used are different. The data is obtained from the National Atmospheric Emissions Inventory, produced by Ricardo Energy and Environment. It is also available online. The amendment referred to the 1998 Aarhus convention, the three pillars of which are already implemented in domestic legislation. Article 5, which relates to access to information, has been implemented through a number of measures, including legislation such as the Environmental Information Regulations 2004.

Measures in the Bill, as many noble Lords have noted, can help tackle emissions by reducing the amount of fuel burn that will come from aircraft, because they will be making more efficient journeys into airports. We are also moving into circumstances now where new technologies will allow for steeper climbs and steeper descents into an airport: again, this reduces the amount of fuel needed. It will also reduce the need for holding stacks, a big user of fuel. Early analysis suggests that modernisation in the south-east could reduce the amount of fuel burn by 20%, which would be a 20% reduction in carbon.

However, I will go away and look at the data. I am as interested as anybody in making sure that the data is correct, that it is published correctly and that it is available for all to see, because only then will we be able to really see the impact of our actions. If the noble Lord has any further details of the sort of data he would like to see, I cannot guarantee to put it the Bill but I may be able to make sure that it is published by colleagues.

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[Lord Berkeley]

The Minister will be aware that one of the consequences of Brexit is a lot more work heading towards the CMA, something that our EU Internal Market Sub-Committee, chaired by my noble friend Lady Donaghy, is looking at. Is the Minister happy that the CMA will be able to recruit more people to cover the civil aviation issues as well as everything else, or will they be constrained by the usual Treasury financial limits?

[Baroness Vere of Norbiton]

We have been discussing the Bill with the CMA. We are talking about appeals to modify the conditions in the licence of the single air navigation service provider which is dealing with the upper airspace. Therefore, we do not expect to keep the CMA particularly busy and are not aware that it would have a shortage of resources.