Civil Aviation Bill

Nigel Evans Excerpts

Tuesday 20th November 2012 Commons Chamber

[The Minister of State, Department for Transport (Mr Simon Burns)]

I beg to move, That this House agrees with Lords amendment 1.

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to discuss Lords amendments 2 to 72.

[Mr Burns]

In an increasingly globalised world, air travel is fundamental to the long-term competitiveness of the United Kingdom. However, much of the legislation that governs aviation dates from the 1980s, and it is therefore imperative for the legislative framework to be brought up to date. The Civil Aviation Bill introduces, and makes possible, reform in four key areas: the economic regulation of airports, the legislative framework of the Civil Aviation Authority, the air travel organisers’ licence scheme, and aviation security. The Bill has secured wide support, and we have worked hard to address issues that have raised concern in this House, in another place, or in the industry.

The vast majority of the amendments made since the Bill was last in this House are minor and technical, including Lords amendments 23 to 27, 29 to 36 and 44 to 71. I shall refrain from entering too deeply into the details of those amendments at this stage; suffice it to say that they are predominantly concerned with improving the drafting, clarifying the wording, removing areas of ambiguity, or excluding doubt to ensure that our policy intentions are properly met and delivered in full.

Let me deal briefly with three notable issues on which amendments have been agreed in another place: the imposition of environmental duties on the CAA, the efficiency of the CAA, and the Secretary of State’s powers to make regulations relating to the ATOL scheme.

The environmental impact of aviation has been raised during the Bill’s passage through both Houses, and the Government take it very seriously. In particular, there has been a great deal of focus on giving the CAA additional duties to take account of it. Lords amendments 1 to 4 respond to that concern by giving the CAA a supplementary environmental duty to which it must have regard in performing its airport economic regulation functions. The amendments are intended to make it clear that in conducting those functions, the CAA must have regard to the ability of the regulated airport operator to take reasonable measures to reduce, control or mitigate adverse environmental effects that are generated by the activity of the airport—and aircraft using the airport—to which the licence relates. For example, a reasonable measure could be a cost-effective energy saving investment project, such as the installation of solar-powered lighting in terminal buildings, which would lower the airport’s future energy costs. Environmental issues in this context would include noise, vibration, emissions and the effects of works carried out at the airport. The amendments also provide clarity that reasonable costs of environmental measures undertaken by licence holders may continue to be taken into account in the regulatory settlement, where the measures are in the interests of passengers and owners of cargo and to do with the provision of airport operation services.

We have always been clear that airport operators, whether or not they are subject to economic regulation, should be able to invest in appropriate environmental measures. For example, if an unregulated airport undertakes investment in environmental measures that benefit passengers, the Civil Aviation Authority will be able to look to this and approve a reasonable similar investment in the regulatory settlement at a regulated airport.

The Government do not believe that the absence of an environmental supplementary duty would prevent the CAA from approving environmental investment where that is in passengers’ and cargo owners’ interests. However, following detailed consideration of the matter, the Government decided there is a benefit to making this clear in the Bill. Certainly, the Bill should not be seen as placing a restriction on investment in environmental measures at licensed airports where they benefit passengers and freight owners in the provision of airport operation services.