Air Services (Competition) (Amendment and Revocation) (EU Exit) Regulations 2019

Michael Fabricant Excerpts

Monday 7th October 2019 General Committees

[The Minister of State, Department for Transport (Chris Heaton-Harris)]

I beg to move,

That the Committee has considered the Air Services (Competition) (Amendment and Revocation) (EU Exit) Regulations 2019 (S.I. 2019, No. 1224).

It is a pleasure to serve under your chairmanship, Mr Wilson. Obviously, the Government are working with energy and determination to secure a new deal with the European Union. However, if we have to leave without a deal, the Government are committed to preparing for that outcome. As the Department responsible for civil aviation, the Department for Transport has already conducted intensive work to ensure that there continues to be a functioning legislative framework and an effective regulatory regime for that critical part of the UK economy. In fact, as we leave the European Union, a successful UK aviation sector will be an essential part of a successful global Britain. This new instrument will ensure that the legislative framework and regulatory regime for the sector remains on a well-functioning basis.

The Government have given careful consideration to the appropriate procedure for progressing this instrument. For reasons that I will briefly outline, it is important to have the instrument in place by exit day. That is why we have gone for the “made affirmative” procedure, which will ensure that outcome while allowing for parliamentary scrutiny.

The regulation amends Regulation (EU) 2019/712, which sets out an approach to safeguarding competition in air transport. Fundamentally, this instrument ensures that, when responding to anti-competitive practices, the UK will have the same powers to protect UK airlines as will be available to the EU to protect EU airlines. Previously, Regulation (EC) No. 868/2004 provided for redressive measures to be imposed when subsidisation and unfair pricing practices by third-country airlines cause injury to EU airlines. The previous statutory instrument on this subject introduced corrections to that regulation to ensure that it would apply when the UK left the EU.

However, since the extension to the UK’s departure from the European Union, Regulation (EC) No. 868/2004 was repealed and replaced with Regulation (EU) 2019/712. The reason given was that the previous regulation was judged to be ineffective in respect of its underlying general aim of fair competition. For instance, there was a lack of definition of the initiation and conduct of investigations, or the criteria for doing so.

[Michael Fabricant (Lichfield) (Con)]

That all makes incredible sense to me, but what discussions has my hon. Friend had with British Airways, easyJet and other major UK carriers regarding this measure, and are they in full support?