Aviation Industry

Mike Kane Excerpts

Wednesday 18th November 2020 Westminster Hall

[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward. It is normal to thank the Member who secured the debate, but I have to apologise to the right hon. Member for Epsom and Ewell (Chris Grayling) instead. When he was Secretary of State for Transport, I asked him on the Floor of the House what first attracted him to build a high-speed line from his home in the south-east of England to his season ticket seat at his beloved Old Trafford in Manchester. That is the last time I will be flippant today.

I congratulate the right hon. Gentleman on securing this much-needed debate. It was entitled “Aviation Industry”, but that is the last thing we have talked about—we have talked about the pandemic. I would love to discuss how the sector could evolve to honour our commitments to the Paris agreement; to investigate the scope for even more highly skilled, highly unionised jobs; to discuss airspace modernisation, which is needed in this country; and to talk about how Britain can continue to be a leader of nations. Frankly, there will be no aviation sector in the UK if the Government do not get a grip of the pandemic and provide the appropriate and necessary support that the business needs.

As has been pointed out, the UK is already a world-class leader in aviation. The Prime Minister wants to look for new world-class industries—that is great, but my advice would be to protect the ones we have first. During the first four months of the pandemic, there were 99% fewer passengers. The current lockdown measures mean that, again, many airports are experiencing zero scheduled passenger arrivals or departures. Many hon. Members have defended their airports today. If airports are not turning over a million passengers, they are not really making a profit, so national infrastructure could be wiped out over the next few months if we do not do something.

Before the introduction of the second lockdown, UK airports were already projected to lose at least £4 billion by the end of the year. There will clearly be consequences such as shorter operating hours, fewer routes, long-term job losses and the risk that some airports may close their doors for good. UK aviation has now faced nine months of losses. While the rest of the economy began to open during the summer and early autumn, international quarantine measures prevented air travel from reopening and destroyed consumer confidence in flying.

Decisions such as letting all those people in in the first place, then introducing a global travel ban, and now the hammer of quarantine are killing the industry. The Department for Transport has to talk to the Foreign, Commonwealth and Development Office. The Foreign, Commonwealth and Development Office has to talk to the Department for Transport. They both have to talk to the Home Office at the same time. We need a co-ordinated approach from the Government.

Emerging from the most drastic and sustained reduction in passenger numbers that the aviation system has ever seen, UK airports are in a critically poor state to perform their role as enablers of growth and prosperity. A few weeks ago, there was a story about geological activity in another Icelandic volcano. A decade ago, the ash cloud shutdown was over in less than a week and cost the sector more than £1 billion. A new eruption would not do anywhere near the lasting damage that the Government are currently doing by not intervening in the aviation sector.

Aviation sustains 1.6 million jobs around the country. The International Air Transport Association tells us that 300,000 jobs are at imminent risk. The biggest impact of the failing industry will be in local airport communities such as Hounslow, Luton, Crawley, Manchester, Liverpool and Leeds—so much for the levelling-up agenda in our country. Those communities have grown dependent on their airports, which drive much of the local economy. Heathrow is famously the biggest business rates payer in Europe. As has been pointed out, in England and Wales, the Government have refused to give the resources and business rates relief to airports bleeding cash, as has happened in Scotland and Northern Ireland.

The sector brings £22 billion a year into the economy and is a critical part of its fabric. We have all seen the impact of cuts and what they have meant for staff, with some 4,500 jobs lost at easyJet; bases closing at Newcastle, Stansted and Southend; 12,000 job losses at British Airways; 3,000 jobs lost at Ryanair; 4,500 jobs lost at Virgin Atlantic; and more job losses at Heathrow, Manchester, Gatwick, Stansted and our smaller regional airports. The country cannot get back to economic health if we erode the foundations of our economy.

It appears that everybody is calling for a sector deal for aviation. It was not that long ago that the Chancellor reflected that the Government would have to make such an intervention. We are led to believe that there was a sectoral deal ready. I have also asked the Minister about that at the Dispatch Box. Where is the plan that we are all expecting?

This has been a terrific debate and I pay tribute to Members who have participated. The hon. Member for South Antrim (Paul Girvan) spoke eloquently about regional connectivity and the importance of airways to Northern Ireland. I disagree on everything politically with the hon. Member for Crawley (Henry Smith), except aviation and the respective Chagossian communities that serve our airports, which is Manchester in my constituency.

I could not agree more with the right hon. Member for Orkney and Shetland (Mr Carmichael), because I spend most of my holidays there. The sooner we get connectivity up and running, the better for me and my wife. As the hon. Member for Filton and Bradley Stoke (Jack Lopresti) pointed out, the aerospace sector in Bristol is dependent on getting aviation running. There were Members who supported Heathrow. My hon. Friend the Member for Feltham and Heston (Seema Malhotra) made an eloquent speech. The hon. Member for Eastleigh (Paul Holmes) defended Southampton airport.

My right hon. Friend the Member for Hayes and Harlington (John McDonnell) made a really good political point. He knows that my politics is about human dignity. We undermine people’s human dignity when we cut their terms and conditions in the face of a pandemic, when they have gone over and above to help keep that industry going. The hon. Member for East Devon (Simon Jupp) made such a good point: how come Tesco gets rates reductions but our airports do not?

My hon. Friend the Member for Luton North (Sarah Owen), who continually makes good speeches, stood up for her constituency airport. My hon. Friend the Member for Easington (Grahame Morris) and the right hon. Member for East Antrim (Sammy Wilson) asked where the plan was. We are eight months in and we need that leadership. The hon. Member for Meriden (Saqib Bhatti) talked about Birmingham airport and defended it excellently. The Chairman of the Select Committee, the hon. Member for Bexhill and Battle (Huw Merriman), has been a clarion voice in standing up for the industry.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) said that we are probably now going to listen to the Minister give a list of business loans. Sir Edward, you will get this reference. It will be like a litany of saints, a beatification, on a Roman balcony. There will be one after the after, but what we do not need is lists. We need leadership and we need it now.

[Sir Edward Leigh (in the Chair)]

Thank you for mentioning everybody who spoke in the debate. That does not often happen in wind-ups and it is rather a good habit.

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

It is an honour to serve under your chairmanship, Sir Edward. I shall do my best to acknowledge as many Members as I can in my remarks.

I thank my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) for securing this debate on the future of the aviation industry, and everybody who has contributed in what has been a wide-ranging and fascinating debate. Every single Member here is passionate about aviation, which was made very clear in the course of the afternoon.

We have heard from a number of hon. Members about the critical role that aviation plays in connecting the whole of the UK and the world. I thank my right hon. Friend for all his tireless work when he was Secretary of State. That was a point that he was keen to make clear during his time, and we have seen that reflected today.

I hope that my right hon. Friend will be pleased to see—as will my hon. Friend the Member for Crawley (Henry Smith), to whom I will return in a moment—that work started in May on upgrades to the Gatwick airport rail station. That is a £150 million project, which my right hon. Friend announced when he was Secretary of State. That expanded, modern station will provide an impressive gateway to a global Britain, and I thank him for his work on that.

I have listened carefully to the points that have been made. I will endeavour to address as many of them as possible. However, as the hon. Member for Wythenshawe and Sale East (Mike Kane) and my hon. Friend the Member for Don Valley (Nick Fletcher) rightly said, it is not always possible for Back Benchers to make all the points they would like in their speeches or for me to acknowledge all of them, but I will do my very best.

These are incredibly challenging times for the aviation sector. We all realise that, and none more so than this aviation Minister. I would like to record at the outset how crucial the sector is to the UK and its economy, as was said eloquently by the Chair of the Select Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman).

Before the covid-19 outbreak, the UK’s aviation sector was growing rapidly. Air transport and aerospace together contributed £22 billion to GDP and supported half a million jobs. The hon. Member for South Antrim (Paul Girvan) and my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) referred to the aerospace sector. This country and their constituencies excel in it, and they are right to draw attention to that. Aviation supports the economy through trade, aerospace, investment and tourism and by providing regional connectivity. It is the Government’s fervent desire and utmost intention that the aviation sector recovers quickly from the dreadful pandemic that it and the country have been through.

I want to dwell for a moment, in response to hon. Members’ calls, on the support that the Government have given to the sector. We should remember, despite the cynicism of the hon. Members for Paisley and Renfrewshire North (Gavin Newlands) and for Wythenshawe and Sale East, that the response has been unprecedented. It has enabled businesses across the industry to draw upon an unprecedented package of cross-economy support measures, including the Bank of England’s covid corporate financing facility, which has helped airlines’ liquidity. The sector drew down £1.8 billion of support by September 2020. The aviation sector as a whole is the largest beneficiary of CCFF, accounting for approximately 18% of the total amount of CCFF paid out by November.

As hon. Member know, on 5 November the Chancellor announced that workers across the UK will benefit from the increased support of a five-month extension of the furlough scheme—the coronavirus job retention scheme. It will now run until the end of March 2021, with employees receiving 80% of their current salary for hours not worked. My hon. Friends the Members for Meriden (Saqib Bhatti) and for Don Valley are right to point out how significant that support is. Overall, we estimate that the sector has received about £2.5 billion to £3 billion of support through the CCFF and the job retention scheme.

Hon. Members made a number of other points. The hon. Member for Luton North (Sarah Owen) asked me about conversations with individual companies. I hope she will understand that I cannot comment on any commercially confidential matters relating to individual companies. The Government have heard the broader requests for further support and are considering them carefully.

The House has powerfully reminded us that the impact of redundancies on employees, their families and their broader communities is serious. We heard a number of powerful speeches. The hon. Members for Feltham and Heston (Seema Malhotra) and for Ilford South (Sam Tarry) referred to Heathrow in particular, and other hon. Members also made powerful contributions. I see it myself from the correspondence that I receive from hon. Members and people up and down the country, and I understand that the impact on those who work in the aviation sector is very significant indeed. We must always remember that, ultimately, it is people who stand behind this.

My predecessor and officials have met unions regularly—I hope that the hon. Member for Easington (Grahame Morris) will be pleased to hear that—and I will meet them again shortly. I have spoken directly to companies that are considering redundancies and changes to terms and conditions, and I have offered my support and that of the Government for engagement efforts with staff where that is appropriate. I encourage unions and employers to sit down, speak to each other and find a solution where appropriate. The Government recognise that the aviation sector is home to highly skilled, highly trained staff, and their retention is vital. I thank all hon. Members who drew attention to that point.

On quarantine and travel corridors, I recognise the frustration of hon. Members, holidaymakers and businesses about the matters arising from the health measures that we have introduced and changes to the travel corridor exemption list. We must not lose sight—I know that hon. Members do not—of the reason why we have had to make those changes; it is simply to protect the health of the nation.

The right hon. Member for East Antrim (Sammy Wilson) rightly talks of confidence. That is why we took the action that we did with the introduction in July of travel corridors, which were a major step forward in safely reopening international travel while retaining the ability to act quickly if public health were at risk. We continue to keep that policy under review, and it is clear from the steps we have taken that it is an evolving policy. We update the exemptions list weekly to reflect the changing health situation in each country, and we continue to evolve that policy as new and enhanced data becomes available. That allowed us, on 7 September, to introduce the islands policy, under which island destinations can be considered separately from the mainland. That provides increased flexibility to add or remove them, as distinct from the mainland, as infections rates change. Unfortunately, as right hon. and hon. Members will realise, the incidence rates in this country are growing, which is why we had to take the steps that we have taken from 5 November.

I want to say a few words about testing, which has obviously been a major part of the debate. There has been some powerful advocacy, and none more so than from my hon. Friend the Member for Crawley. He represents Gatwick airport, and his constituents who work there, with power and dedication. They could have no finer voice, and I thank him for everything he has said in the debate and outside.

On testing at airports, we have previously explained, and I want to explain again for the record, that we cannot currently endorse testing passengers immediately on arrival—in other words, at airports—as a means of avoiding the 14-day self-isolation period. The reason for that is that the long incubation period means that a significant proportion of infected but asymptomatic passengers might receive a negative result but go on to develop the virus over the following days.

However, we are taking action. My right hon. Friend the Member for Epsom and Ewell referred to the global travel taskforce that we have created, and I want to explain to the House what that is considering. It is looking at how a domestic testing regime for international arrivals could be implemented in order to boost safe travel to and from the UK, and to allow UK residents to travel with confidence. It will consider what steps we can take to facilitate global business and tourist travel, including through bilateral agreements and multilateral forums. We will continue to explore with key international partners issues such as global common standards, testing models, measures around enforcement, exemptions and other border management measures. Beyond that, we will explore what steps we can take to increase consumer confidence, ensure that current measures are being properly adhered to, and restart international travel safely.

I want to inform the House and the Chair of the Transport Committee, my hon. Friend the Member for Bexhill and Battle, who asked the specific question—

[Mike Kane]

Will the Minister give way?

[Robert Courts]

I will in a moment. I want to inform everybody that the taskforce will report back to the Prime Minister very soon.

[Sir Edward Leigh (in the Chair)]

Can you give some time for the right hon. Member for Epsom and Ewell (Chris Grayling) to sum up?

[Mike Kane]

I withdraw my request to intervene.

[Robert Courts]

There are many points that I would like to make—I am conscious of the time, Sir Edward, and I am grateful to you for reminding me—about recovery, but they have been made very well by right hon. and hon. Members. There are a number of points around decarbonisation that I would like to have addressed. Given the time, perhaps we can have a debate about that on another occasion.

I thank everybody who has taken part in the debate, and I thank my right hon. Friend the Member for Epsom and Ewell once again for securing the debate. We are all aware of the scale of the challenge facing the aviation sector and, indeed, the entire country. The combination of the steps that we are taking on public health, the work that we are taking forward on testing and travel corridors, and the unprecedented economic support provides a strong foundation for the recovery of the sector. My hon. Friend the Member for Meriden encouraged me to work together with the sector. I will do so tirelessly, and I will work with every Member who has spoken in the debate.