Civil Aviation Bill

Louise Ellman Excerpts

Tuesday 22nd May 2012 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I am pleased to be able to speak in the debate because this is an important Bill that reflects the significance of aviation to our economy. I am glad that there is so much agreement on the essentials, and I am pleased that the Select Committee on Transport was able to consider aspects of the Bill not once but twice, given some rather curious timing which my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick) described as “dislocated”. I have not heard that word used before in connection with consideration of a Bill, but perhaps it is indeed relevant.

We conducted pre-legislative scrutiny, but the parliamentary debate on the Bill began within about two days of the publication of our report. We then considered separately the proposals for reform of ATOL holiday insurance, when we had fuller information about the Government’s plans. In both our inquiries we generally supported the Bill, but we sought a number of changes and made a number of criticisms, some but not all of which have been taken up. I want now to refer to some of the concerns that we raised, which have been reflected in other parts of the debate on the Bill.

The Bill’s focus on passenger experience and welfare is greatly welcomed, but it is important for that work to be conducted efficiently and effectively, particularly when it comes to the production of information about different experiences in different airports. When we were considering the Bill, concerns were expressed by a number of airports—especially regional airports—which were suffering as a consequence of the current economic hardships, and were worried about the increased cost that could result from the new regulation for which the Bill provides. It is important for the light-touch regulation to be effective, producing correct and appropriate information that can benefit passengers by enabling them to decide how they wish to travel.

How to deal with adverse weather conditions has exercised the House for a long time. Although the Bill does address the issue, we were disappointed to note that its proposals were not strong enough to ensure that all airports would draw up proper plans to deal with bad weather. We were told that the CAA would deal with the matter, but, although we are glad that it has been highlighted to a greater extent, we still feel that sufficient emphasis has not been placed on it in all instances.

Our greatest concern, which has been vindicated by events since the publication of our report, was the need for much more effective co-ordination and working together by the Department for Transport and the Home Office. Our report addressed immigration queues—and, indeed, if we are interested in questions of passenger experience, we should note that among travellers’ greatest concerns are baggage handling and queues at immigration. However, such queues are controlled by the Home Office through the UK Border Agency. We expressed concerns about a lack of co-operation, and subsequent events have reinforced that point. It is unclear how much co-ordination there is between the Department for Transport and the Home Office on how to deal with queues such as those at immigration and passport control. I hope that will be addressed once the Bill is enacted.

Security is a linked area of concern. There has been a change in aviation security policy—a move to an outcome-focused, risk-based approach—and a split in responsibility for security between the Department for Transport and the Civil Aviation Authority acting on behalf of the airports. There is concern about how that division of responsibilities will operate while ensuring we maintain the highest standards of security in the most cost-effective manner. More thought needs to be given to how that is to be achieved. We also raised concerns about staffing and the initial proposals to move staffing from the Department to the CAA. We wondered whether expertise would be lost. The Department has addressed that in its response to our report, but concerns remain.

Holiday insurance and ATOL reform are long-standing issues. The Committee has looked at that for many years, both in the previous Parliament and this one. The ATOL scheme was introduced in the 1970s. At that time it fitted the way most people went on holiday, which was on conventional package holidays. The situation has changed dramatically, however. Before the changes that came into force a few weeks ago, only about 50% of people going on holiday were covered by ATOL, and there was a £42 million deficit in the scheme. We support the Government’s proposed changes, such as the extension of what constitutes a package holiday—or, rather, a qualifying holiday—the introduction of flight-plus and requiring tour companies and transport operators to provide a certificate where ATOL is in force, giving clearer information to the traveller about what is covered by the insurance.

I understand that about 60% of travellers will be covered under the new scheme, but I urge the Minister to use the powers under the Bill to extend ATOL further to incorporate holidays sold by airlines. Other tourism companies and operators feel a deep sense of grievance that while they have to pay the levies associated with ATOL, when airlines sell holidays they do not have to do so and do not face the same costs. I hope that will be dealt with, along with companies designated as agents for the consumer also being able to avoid some of the liabilities that other holiday companies have to take up. Although we welcome these changes, a much broader look at how the scheme operates is needed.

We also think there is a need for more information on what the consumers—the travellers—actually want. There is little information about the views of travellers. They might, for instance, want more information on other forms of available insurance. Although I repeat that we certainly welcome the Government’s measures, they need to go further.

More work can be done on all those points of concern, although I reiterate that there is general support for the Bill. I view the items of concern I have mentioned as works in progress and I hope that the Minister can assure us that she sees them in that light too. I hope that she can give us an absolute commitment that there will be closer working between the Department and the Home Office on the queues at our airports so that that problem, at least, can be dealt with satisfactorily as soon as possible.