Civil Aviation (Consumer Protection and Regulatory Reform) Bill [HL] Debate

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Department: Department for Transport
Lord Empey Portrait Lord Empey (UUP)
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My Lords, in support of the arguments advanced by the noble Lord, Lord Moylan, we discussed this in Committee among those of us who regularly use airports. As I recall, this phenomenon of airport drop-off charges started off at £1 not that long ago—in fact, some airports had a basket and the thing opened when you threw in the £1, and that was it—but it is now a significant expense and has moved on to £3 or £5, with some airports charging £8.50 or even more. The way this is going is in one direction.

Now, we understand that businesses have to survive and make money, but, if I may refer the House to the arguments put forward at the beginning of Report today on economic growth, this is not only a business cost but a tax on tourism and an inhibitor. It is becoming a significant issue, when you add in parking charges and so on.

We would all love people to be able to get to airports by public transport, but, very often, public transport is not integrated into airports in the way that we have all seen in other parts of the world. If you go to Schiphol, the trains run through the terminal, but that is not the case for many airports here. Realistically, if you come from a rural area or if a family with kids and a load of stuff are going on holiday, there is little opportunity to save on that cost. The noble Lord, Lord Moylan, has also made the point about disabled passengers, of whom we have spoken significantly, but this is not confined to people with physical disabilities; it is a charge on everybody and, in my opinion, the risk is that it just gets completely out of control.

My amendment has slightly different timescales and so on from that of the noble Lord, Lord Moylan, but that is neither here nor there. The fundamental point is that this revenue stream did not exist a relatively short time ago. It is rapidly increasing and it will continue to increase, either because the airports feel that it is a way of making money or because some people think that a policy that forces people away from the drop-off and on to public transport has its own advantages. However, that applies only in limited cases, and it is certainly not universally spread around the country.

In short, we need to take steps to get this matter under control. It is not a dramatic change in policy, but if we are focusing on economic growth, this is a business cost and is no different, in effect, from any other charge. I sincerely hope that the Minister will reflect and acknowledge that this is an area of activity that is growing and is currently out of control.

Baroness O'Loan Portrait Baroness O'Loan (CB)
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My Lords, I support the noble Lords, Lord Moylan and Lord Empey, on this issue of parking charges. In Belfast City Airport, which I use every week, there is a £4 charge to drop someone off, but if you are longer than 10 minutes, it rises to more than £20. The alternative is to use the short-stay car park.

I would just like to tell noble Lords what I paid for five visits over 14 days in June: for eight minutes, I paid £12; for 12 minutes, I paid £6.50; for 20 minutes, I paid £7; for 12 minutes, I paid £8; and for 13 minutes, I paid £8. So I wrote to the airport to ask how I was supposed to know what I would have to pay. I had already checked the website, which tells you that it costs £4 to drop someone off, but it does not tell you that you need to do so within 10 minutes. I got an email back from the airport, which said something really quite strange:

“we have introduced flexible drive-up rates in our Short Stay Car Park, meaning prices may vary depending on peak times and availability. These prices are displayed on the boards … Our three on-site car parks provide flexible options”.

I cannot understand what is meant by “flexible drive-up rates” and “prices may vary depending on peak times and availability”. The amount that we are being charged seems to be a figure that is pulled out of a hat.

I do not think that that is satisfactory, and there is a need for regulation on this. Customers coming into the airport—particularly the elderly and the disabled—have a difficulty in managing to get out quickly. Another aspect is that people who have to wait for baggage depend on the availability of baggage handlers to put their baggage on to the carousel in order to allow them to get out to the pick-up point where someone is picking them up. Sometimes you can wait for 10 or 15 minutes, and then you are into big-money charges.

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Lord Hendy of Richmond Hill Portrait Lord Hendy of Richmond Hill (Lab)
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I thank the noble Lords, Lord Moylan and Lord Empey, for re-tabling their amendments on airport drop-off charges. I will address them together.

I understand the concerns behind these amendments. Passengers should have clear, accessible information about travel options to and from airports, including drop-off, short-stay parking and free alternatives. The Government expect airports to act transparently and fairly, and reinforces this through regular engagement with the sector. However, these amendments are neither necessary nor proportionate. Most UK airports are privately owned and responsible for managing their roads and parking. Their arrangements are already subject to consumer protection law, competition law and industry standards, with enforcement and redress where practices are misleading, unfair or non-compliant. There are also established mechanisms to review airport drop-off charges where concerns arise.

The CAA has already examined airport surface access, including competition, consumer issues and the transparency of information on options and charges, and found insufficient evidence to justify a competition or consumer law investigation. Private parking operators are expected to comply with the sector’s code of practice, including requirements on clear signage, accessibility, penalty charge notices and appeals. The Government will continue to expect airports and operators to provide clear, accurate and accessible information before passengers travel. I say to the noble Baroness, Lady O’Loan, that if the information at Belfast City Airport is as unclear as she describes, she has a valid complaint.

Drop-off and parking charges support airports’ wider commercial and operational management. They can reduce congestion, improve traffic flow, support surface access strategies and fund passenger facilities, including cleaner transport options. Restricting them in primary legislation risks shifting other costs to passengers and undermining airports’ ability to manage congestion effectively. Almost all airports that charge for terminal drop-off provide free alternatives, such as shuttles. Airports should ensure that these options are clearly communicated in advance so that passengers can make informed choices. For those reasons, while I understand the noble Lords’ concerns, I ask them not to press their amendments.

Lord Empey Portrait Lord Empey (UUP)
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Before the Minister sits down, he used the phrase competition, but is it not the case that, in the vast majority of cases, we are talking about monopolies? There is nobody to compete with because you have no choice. If you want to go to Heathrow, yes you have Gatwick as an alternative but it is miles away. There is really no competition here.

Lord Hendy of Richmond Hill Portrait Lord Hendy of Richmond Hill (Lab)
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I am referring to choices in the method of access to the airports, rather than the choice of airport itself.

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Moved by
34: After Clause 3, insert the following new Clause—
“Responsibility for air quality standards on planes (1) Within 12 months of the day on which this Act is passed, the Secretary of State must conduct a review to establish responsibility for standards of air quality on civil aviation planes.(2) The review must—(a) make suggestions for which organisation should be responsible for standards of air quality on civil aviation planes, and(b) provide guidance for implementing a strategy for the establishment of standards of air quality on civil aviation planes.”
Lord Empey Portrait Lord Empey (UUP)
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My Lords, we discussed this in Committee. It affects all of us who use aircraft on a regular basis—and, more importantly, those who fly and crew them, who live in a capsule with artificially filtered and pressurised air. Over the years, we have had examples of oil seals in engines leaking and vapour coming into the cabin, which has largely been down to either design faults or poor maintenance.

I have a close relative who works in the industry and spends his time in a cockpit. We know that, in that compressed environment, the air you breathe in can sometimes be contaminated with mineral oils, since the air is bled from the engines and pressurised, and in some cases heated, before being brought into the cabin. It is true that pilots quite frequently have a separate air supply from that of the passengers, but ultimately it all comes from the same fundamental source. The issue is contamination from these oils; they are there to help the engine, but this has the effect of breaking them down into their components, some of which can be toxic.

I am simply asking for the Secretary of State to

“conduct a review to establish responsibility for standards of air quality on civil aviation planes”.

We are now seeing longer journeys than ever, with people flying in an aircraft for 14, 15 or 16 hours. This issue is extremely important for those who earn a living in these environments and spend vast parts of their lives there. This is not a new phenomenon in industry; we have had it in mines, factories and all sorts of environments. In addition to being a location where passengers are carried, an aircraft is a location where people work. It therefore seems not unreasonable for us to pay significant and serious attention to this and ensure that we guarantee, as far as possible, the health and safety of the people who work in the industry and the rest of us who use it.

This amendment is not an unreasonable thing to ask for; it would not impose any huge burden on the Secretary of State, other than to review. We also need clear lines of responsibility. I hope the Minister can address this, because this amendment is not just about requiring a review of the health implications of long-term exposure to pressurised air. If we want to encourage people to join and use the sector, then they must be satisfied by the health and safety standards.

In proposed new subsection (2)(b), I have asked for the review to

“provide guidance for implementing a strategy for the establishment of standards of air quality on civil aviation planes”.

I think the Minister will find that that is not a burden on his department; it is a perfectly sensible and reasonable thing to do. Aircraft are places where we all spend a lot of time—some of us spend more time in them than others. If you work in one for your career, whether as a pilot or a member of the cabin crew, you are spending most of your working life in that environment, so it is not unreasonable for this to be reviewed and examined by the Secretary of State and that any necessary steps are taken. I beg to move.

Baroness Finlay of Llandaff Portrait Baroness Finlay of Llandaff (CB)
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My Lords, I remind the House that I am president of the CO Research Trust. Cabin air quality is a critical issue. I am grateful to my noble friend Lord Empey for the way he introduced this group, and for co-signing my amendment.

My Amendment 37 would create a statutory duty on air operators to install continuous active monitoring for carbon monoxide and volatile organic compounds in the cockpit and passenger cabins, and provide an immediate alert to the crew and direct data reporting to the Civil Aviation Authority. I thank the Minister for meeting me last week and for the very constructive and open discussion we had. I hope he can confirm that the Civil Aviation Authority has the powers to act on cabin air quality and is willing to meet to see how we can best ensure this aspect of passenger and crew safety, as we would then not need to seek to put these powers in this primary legislation.

It has been interesting to go back over some air disaster reports, as the possibility of carbon monoxide and volatile compounds seems not to have been fully considered in some instances, along with questions over the possibility of fumes in the cockpit, even when pilot hyperventilation was noted. As we become increasingly aware of the dangers of low-level carbon monoxide exposure, particularly over prolonged periods, cabin air quality is critically important. I remind the House that HEPA filters deal with viral and similar particles in recycled cabin air but do not capture gases. In any case, carbon monoxide and volatile organic compounds enter the cabin’s air intake directly from the engine turbines—in other words, before the filters deal with recycled air.

In Grand Committee, the Minister referred to the committee on toxicity reporting that normal levels of chemicals found in cabin air are not likely to be harmful. But a fume event is not a normal occurrence, and we have to take a precautionary approach. It is a mechanical failure, for which carbon monoxide is an easily detected indicator of contaminated cabin air. Operators must report and investigate any suspected leaks, but the paradox is that an operator cannot report a suspected leak of carbon monoxide without any monitoring, as the gas is colourless and odourless, which explains why carbon monoxide exposures are undetected and unreported without monitoring.

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Lord Hendy of Richmond Hill Portrait Lord Hendy of Richmond Hill (Lab)
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I defer absolutely to the noble Baroness’s far superior knowledge. I think what she is referring to is the review that is currently being undertaken.

Lord Empey Portrait Lord Empey (UUP)
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My Lords, I thank the Minister for the offer of a meeting with the CAA. I see from her head, which is about to nod off her shoulders, that the noble Baroness, Lady Finlay, agrees that this is a good idea, so I thank the Minister for that. It is a helpful contribution.

To the noble Baroness, Lady Foster of Oxton, I say that I would not wish at any point to frighten people away from aircraft. I feel I almost live in one as it is, and we all use them. However, we must remember that, as well as being a conveyance for passengers, an aircraft a workplace, which is the big difference. We have learned all about minute contamination. If we look back at the regulations that were enforced on what was supposed to come out of the nuclear power plant in the north-west of England and the levels of contamination that was allowed initially, which people said did no harm to anybody, we see that that is now down to about a thousandth of that. These things evolve with time, knowledge and so on. Nevertheless, the Minister has made a fair and reasonable offer and that is most helpful. Therefore, I beg leave to withdraw Amendment 34.

Amendment 34 withdrawn.
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Baroness Foster of Oxton Portrait Baroness Foster of Oxton (Con)
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My Lords, I support the comments made by my noble friend Lord Grayling. I reiterate, as we had a very good debate in Committee, that, when the slot regulations were going through the European Parliament, even the Commission at that time, which liked to be involved in all sorts of things, acknowledged that it would not be involved in decisions about slots.

Slots are key to the value of any airline company, and they are regulated by the independent airport slots co-ordinator. We do not want to have, and we do not support, political and other influences that might not work to the benefit of the carriers and, subsequently, the passengers. As I mentioned, I therefore support the comments of my noble friend Lord Grayling.

Lord Empey Portrait Lord Empey (UUP)
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My Lords, I thank the noble Lord, Lord Grayling, for his amendments, some of which are entirely complementary to what I want to achieve. I have been battling on this for a long number of years. I fully understand the point made by the noble Baroness, Lady Foster, about the value of an airline and how the slots are worth a lot of money—many millions of pounds, in many cases, depending on the time, and I can only see those values rising in the short term.

It is not that I would want the Minister to use hobnail boots to interfere with the slots regime, but there could be circumstances where—it is not impossible—given that we are in an international market and most of the airlines with slots at, say, Heathrow, are in effect international, the shareholdings of those could change. Let us suppose, for example, that a group such as IAG was purchased by a Middle East consortium; it might seek to maximise its profits from the use of the slots.

Let us take another example: regional airports. It is not a Northern Ireland issue. Let us suppose that that consortium decides, “We don’t need flights from Manchester to Heathrow; we could get rid of those”. Then the question would be: how would people get to the Cabinet? Would they have to take the bus? This is an extreme example, but the point is that a future shareholder could decide either to stop using a regional airport or to reduce the service to the point that it creates economic difficulties for a region. That requires a certain degree of interference by the state, because having inadequate regional connectivity is not simply a commercial matter. It is a matter that can affect regions. It can affect business. It could make regions less competitive, which has an impact on jobs and quality of life.

I got a Private Member’s Bill through this House twice, but we were then part of the European Union and the Minister said, “It’s a European competence; therefore, there is nothing I can do”, so that was that. But now we are in a different situation; we can do something. All I want the Minister to be able to say is that, in extremis, sufficient power exists—or that we will make sure that sufficient power exists—to ensure that the regions are not disadvantaged as a result of slots being removed from them and given to transatlantic or worldwide routes. This is not a difficult problem. Amendment 67 from the noble Lord, Lord Grayling, would give the Secretary of State a power to intervene, taking certain things into account. Therefore, I would have thought that it would be perfectly possible to have consensus on this, because nobody wants to see regions isolated or disadvantaged.

We have an opportunity now; it is within our own power. I accept entirely that we do not want to be messing around with the economics of a particular airline, but there could be circumstances in which the regions are put at risk. I hope the Minister will be able to satisfy me, the noble Lord, Lord Grayling, and others that this is not going to happen, and that he and the Secretary of State will have the powers to intervene if necessary.

Baroness Grender Portrait Baroness Grender (LD)
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My Lords, I turn first to Amendments 42 to 44. Although we understand the desire for commercial certainty, slot allocation is a strategic lever for regional connectivity, as described by the noble Lord, Lord Empey, and for national health. We strongly support his Amendment 46. Hub airports must provide adequate access for regional destinations. Regional routes must not be casualties of best-profit models.

On transparency, we support Amendments 47 and 48, which would mandate formal consultation and parliamentary statements before reforming the slot regime. As we have talked about in the past, Parliament and the public deserve to see evidence regarding impacts on competition and consumers before the rules of the game are fundamentally altered.

Procedurally, we support Amendments 52 and 53. All regulations under new Section 34A should be subject to the affirmative procedure, in our view. We welcome government Amendments 45 and 49, in particular, as referenced by the noble Lord, Lord Grayling, the removal of imprisonment for slot offences, which we see as a vital move toward proportionality. We welcome the Minister’s change on this.

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I thank the noble Lord, Lord Moylan, for his amendments, which seek to require that all regulations relating to slots be subject to the affirmative procedure. I recognise the noble Lord’s desire for parliamentary scrutiny, but the provision is already tightly constrained. The negative procedure is used only where there is a significant threat to public health or another substantial reason, as noted in new Section 34A(2)(f), and only to make temporary changes to slot usage requirements. Requiring the affirmative procedure in every case would risk delaying the Government’s ability to respond swiftly to disruption in the aviation sector, where timely intervention may be essential.
Lord Empey Portrait Lord Empey (UUP)
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Can I get some clarification on the Minister’s point about Amendment 46? Let us assume that, at this point in time, regional connectivity is adequate, which I believe it is. Therefore, I am not suggesting that existing slots be removed from an existing airline. What I am concerned about is this: if an airline decides to reallocate its slots for international flights, say, to the detriment of the regions, does the Secretary of State have any power to intervene to ensure that regional connectivity is maintained? I am not talking about new capacity or limiting capacity in existing slots. But, in the event that those slots might be reallocated to the detriment of a region, does the Secretary of State have any power to intervene, or are the Government merely a spectator?

Lord Hendy of Richmond Hill Portrait Lord Hendy of Richmond Hill (Lab)
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The answer to that is that the Secretary of State does not have any power to intervene because, as I said, the core principle of the slot allocation regime is that slots are allocated by an independent co-ordinator. There are suggestions from noble Lords opposite that in fact the Government should have less power here, so I am not sure that I see that the Secretary of State can easily intervene in something that is already allocated fairly neutrally and without bias towards any airline, airport or Government.

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Tabled by
46: Clause 7, page 8, line 2, at end insert—
“(2A) The regulations must make provision to ensure adequate slots at hub airports are allocated to flights from regional airports in the United Kingdom.(2B) In subsection (2A)—“hub airport” means an airport used as a transfer point for passengers from one flight to another in order to complete a route;“adequate” means at such a level so as to maintain national air infrastructure and regional economic growth.”Member’s explanatory statement
This amendment obliges the Secretary of State to regulate so that sufficient access to slots at hub airports such as Heathrow is allocated to flights from regional UK destinations.
Lord Empey Portrait Lord Empey (UUP)
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It is not moved but it has not gone away.

Amendment 46 not moved.