Flybe

Lord Foulkes of Cumnock Excerpts

Thursday 5th March 2020 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I thank the Minister for the Statement, which comes at a time of huge concern in the aviation industry. When Flybe first publicly hit problems a couple of months ago, the Government wildly overpromised the help that was on offer, or potentially on offer. It turns out that virtually none of that help was possible, partly because of the concern in the rest of the aviation industry about fair competition but also because the Government, for one reason or another, have not been able to offer money on reasonable terms to the company.

All the grand schemes in the world will not help the people who are losing their jobs today or who are being cut off from the regular routes that they use which are important either to their families or to their businesses. In this Statement the Government repeat some of these grand, long-term promises—but, to be fair, that is actually irrelevant at this time.

On competitive market companies that fail, the Statement is really surprising, given the Government’s response couple of months ago. It says:

“It is not the role of government to prop them up.”


But two months ago, the Government were offering assistance that effectively was promising to do that. Shape shifting will not help the market. What help, if any, did the Government, in the end, provide to Flybe? Was Flybe able to defer the payment of any taxes, or was that not possible?

Beyond the concerns for Flybe employees and the passengers who have paid money for flights, amply outlined by the noble Baroness, Lady Hayter, there will be a very serious knock-on effect at smaller regional airports in the UK. Some of those airports could also find they cannot continue operating. The Statement says:

“Government stands ready to support this sector.”


Exactly how will the Government offer help to this sector? There is a danger that the Government are offering more help that actually cannot be implemented in the end.

The importance of Flybe has been overwhelmingly in its routes to isolated parts of the UK. Some such routes in the UK have PSO status, but only one is a Flybe route: the Newquay to Gatwick route. France has 22 PSO routes, so, even if we are still working to EU rules on this, I ask the Government to reconsider the number of internal routes that are given PSO status, because that is what will provide long-term certainty and a long-term levelling up for parts of the country that are very isolated.

Coronavirus is undoubtedly a factor in tipping this company over the edge probably slightly earlier than would otherwise have happened, and there will be other cases.

[Lord Foulkes of Cumnock (Lab Co-op)]

Look at the time. This is a Statement, not a debate.

[Baroness Randerson]

The two Opposition Front Benches are allowed 10 minutes, and I would like to finish what I am saying. Coronavirus will tip other transport operators into difficulties as well. Especially at this time, when we are expecting a large number of people to need healthcare, I ask the Government what measures they are putting in place to help the transportation of NHS patients from the Isle of Man to hospitals in Liverpool, which is a role that Flybe has undertaken up to now. This is a very specific concern.

--- Later in debate ---

[Baroness Vere of Norbiton]

My Lords, the aviation industry is a highly competitive market, and obviously, private companies operate in it. None the less, the noble Lord makes an important point about the Government’s insight into the financial future and sustainability of airlines. I am sure that he will be pleased to hear that the CAA already undertakes that role. Where potential financial issues are on the horizon, the Government are made aware. Therefore, plans can be put in place.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, may I declare an interest, in that my wife and I are due to fly with Flybe to Bergerac for Easter? I am particularly concerned about that. I am grateful for the Minister’s helpful advice on seeking compensation but my question is about the Flybe shareholders. My understanding is that Virgin is a major shareholder and that the plan was for it to operate these services as Virgin Connect. Why has Virgin not been involved? Why is it not ready to take over the services? Our understanding is that Virgin is a major aviation company in the United Kingdom.

[Baroness Vere of Norbiton]

The noble Lord is right. Virgin is a minority shareholder in Flybe, with a 30% stake. My understanding is the same as his—that Flybe was due to be rebranded as Virgin Connect. I think that overnight, the shareholders reached an agreement that there was no long-term future for Flybe as it stood, so they decided to pull the plug and make it insolvent. From now on, therefore, the winding-up process will be in the hands of the insolvency practitioner, using the usual well-established processes of insolvency. On the other point, I am sorry to hear that the noble Lord’s tickets to Bergerac may not be valid, but I am sure that he will receive compensation somehow.

High Speed Rail (West Midlands– Crewe) Bill

Lord Foulkes of Cumnock Excerpts

Motion to revive Bill
Tuesday 25th February 2020 Lords Chamber

[Lord Adonis (Lab)]

My Lords, I strongly support the Motion and join the Minister in paying tribute to noble Lords who have agreed to serve on the Select Committee. However, as she is aware, the extension of HS2 from Birmingham to Crewe—the phase 2a Bill we are talking about—is integrally linked to the 2b provisions that will extend HS2 from Crewe to Manchester and from Birmingham to Leeds.

In the Statement of policy made two weeks ago, the Prime Minister said that there would be a further review of the northern elements of HS2 covered by phase 2b. He indicated that the review would last about six months, but no detail has been given so far. Because it is so vital to understanding the implications of 2a, can the Minister tell the House more about the review? Who will conduct it? What will the timescale be? When will the Government publish the terms of reference? When will the review start? Is she aware that there is serious concern in Crewe, Manchester, Derby, Nottingham, Sheffield, Leeds and Scotland—where HS2 will ultimately terminate—that, if the review is unduly delayed, we will end up with a high-speed line that goes to Birmingham and Crewe but does not extend these vital benefits to the north?

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I endorse what my noble friend has said. It is important that consideration is given to the further extension, particularly to Scotland. In addition, there have been reports that China has expressed interest in taking over the construction of the high-speed link, and that it could do it more quickly and cheaply. Is that a serious proposal? Is it being looked at by the Government? If so, when will it be considered by Parliament?

[Lord Clark of Windermere (Lab)]

My Lords, I would like to pursue the point made by the noble Lord, Lord Adonis, about the effect of the phase 2a Bill on phase 2b. Can the Minister confirm, first, that under this legislation a station separate from the current mainline station will be built at Crewe? This will mean that people coming down from Scotland will have to change trains. Secondly, will she confirm that, under phase 2b, trains north of Crewe are not going to run at the same speed as the HS2 trains, and that trains to Manchester from Crewe will be doing only the same speed as the 125 trains?

Hammersmith Bridge

Lord Foulkes of Cumnock Excerpts

Tuesday 7th January 2020 Lords Chamber

[Baroness Vere of Norbiton]

I believe that is indeed the case. That question might, therefore, be better directed at the Mayor of London, Sadiq Khan, who has responsibility for transport in London.

[Lord Foulkes of Cumnock (Lab Co-op)]

Does the Minister recall that, during the general election, Mr Boris Johnson pledged to consider building a bridge from Northern Ireland to Scotland, even though there are hundreds of tonnes of explosives in Beaufort’s Dyke, put there because it was supposedly a safe place? If the Government cannot keep Hammersmith Bridge open, how on earth are they going to manage to do that? Is this going to go ahead?

[Baroness Vere of Norbiton]

The noble Lord is quite right. We have indeed asked officials to look at various options for bridges which would strengthen our union, and I understand that there is some talk of a potential tunnel, now that tunnelling costs are cheaper than they used to be. Watch this space, but perhaps do not hold your breath.