Civil Aviation Bill

Nigel Mills Excerpts

Monday 30th January 2012 Commons Chamber

[Nigel Mills (Amber Valley) (Con)]

It is a pleasure to follow the hon. Member for Luton North (Kelvin Hopkins) and to have witnessed the maiden speech of the hon. Member for Feltham and Heston (Seema Malhotra). Having visited her constituency several times a couple of months ago, I can understand why she chose to speak in this debate—I have never seen planes fly so low, except at an airport, and at one point I could almost see what passengers were eating for their lunch. It is obviously an important part of her area’s local economy.

I cannot claim to live in or represent a constituency quite so close to an airport, my nearest one being East Midlands airport, which is about 20 miles away—I know that number well because I use East Midlands Parkway station to travel down to London. It is one of those deceptive airport parkway stations in that it is not possible to get to East Midlands airport from it without catching a bus—except that the bus has been cancelled because no one used it. It is a bit confusing, therefore, for someone arriving from abroad at East Midlands airport, thinking that they can catch a train but finding that they need to get a taxi or some other form of transport to get there. Perhaps, in the long run, HS2 might rectify that, and we might actually get a rail station on the site of the airport.

I join other Members in recognising the Bill as a sensible way of improving the regulation of airports. It is right to start by acknowledging how important airports are to the economic growth of their local areas and of the country as a whole. Many Members will know that East Midlands airport has the distinction of being one of the biggest freight hubs in the country, employing a substantial number of people. Not everyone living under the flight path and who gets to experience night-time freight planes, which sadly do not tend to be the most modern or quietest of planes, will share that enthusiasm, but the effects of the serious number of jobs created ripple out to nearby constituencies, including mine, which is home to the UPS depot in Somercotes.

There are issues, however, with changing any regulatory regime and the possibility of introducing an economic regulator. When I saw the Bill, I feared that these regulators might decide that regulating only three airports was not enough and that they might want to expand their remit to cover a few more, including, for example, Birmingham or Manchester—two airports that my constituents would use regularly, being only about 55 to 60 miles apart—so I welcome the fact that the Bill introduces no real change to how new airports can be brought under that regulatory regime. I do not see the need for economic regulation, given the amount of airport competition in the wider midlands area. I carried out some research to see how many airports I could get to in a 60-mile drive. In addition to East Midlands airport, there were Birmingham, Coventry, Doncaster, Sheffield and Manchester. That is a lot of choice for people booking a holiday, and the number of destinations available from all those airports provides plenty of choice for both scheduled and packaged flights.

My hon. Friend the Member for Tamworth (Christopher Pincher) said that even with so many airports in the area, many people still have to use Heathrow for long-haul flights. Those of us who, to our shame, do not always holiday in the UK know, from comparing flights and prices, how often we can fly only from Heathrow—unless we fancy a couple of changes at Paris or Amsterdam, for example. We need to spread out to the rest of the country some of that capacity and some of those direct flights to the most important trading countries and holiday destinations.

I have touched on the environmental impacts of airports. It is strange that we are producing a Bill setting out how airports can be licensed under an economic regulatory regime, because most of our constituents would think that, when looking to license an airport or impose conditions, the possible environmental damage would be taken into account. The main consideration that people raise is probably the noise for surrounding houses. There must be some link between that and regulation, because it would be strange if a licence could not be removed from a company that was blatantly and flagrantly flouting those regulations—although I accept that we do not want multiple regulators regulating the same things, and I recognise that those noise issues are best addressed elsewhere.

The one issue in the Bill that will get the attention of consumers and passengers is the welcome extension of the ATOL rules. I speak as someone who keenly looks at the price of flights and holidays—I check out the various travel agents and airlines, and pick the cheapest one—but it is always difficult to find out whether something is covered by ATOL. That problem is not helped by the reality of how people book holidays. Everyone knows that package holidays are covered. Twenty years ago, 97% of holidays were package holidays, but it is now less than 50% and falling. The concern is that people do not realise that they do not have ATOL protection. Some might say, “Well, we should all have travel insurance, and surely airline failure is covered in my travel insurance policy,” but actually people have to check their travel insurance carefully to find out whether they are covered—many do cover it but some do not or put a limit on how much can be claimed.

If I book a flight with a cheap airline—let us take Ryanair as an example, although they are all much the same—I will probably appreciate that it is a point-to-point flight and that the airline does not take responsibility for delays or anything else that might impact on me. When I get my ticket confirmation, however, I might get an advert reading, “Do you want cheap car hire?”—through a separate car hire company—or, “Do you want one of these cheap hotels we’ve found?” To what extent does that become a package that would come under the flight-plus rules, or are those completely separate bookings that I choose to make through the hotel and car hire providers? It is not entirely clear whether that would be a package in the way that I might understand a Virgin Holidays package, with a flight and hotel, to be.

It is important to tease this out and ensure that when we make this change we make things clearer for the consumer, and that we do not lead more people to think, “I’m definitely safe and covered now,” when, actually, they have bought the flight separate from the car hire company or hotel. One option would be to make everything covered by ATOL. That would ensure complete clarity and freedom of competition between travel agents and airliners. I accept that there is the risk that if I book my flight through the Dutch KLM website, rather than the UK one, I might get it for £2.50 less because I would not have to pay for the ATOL cover, but we are not talking about a huge material amount on the price of the flight. It would, however, get us the clarity that we are rightly seeking.

Overall, I strongly welcome the Bill as a simplification of the regulatory regime for airports. Everyone wants all our airports to offer the biggest range of destinations and airlines, and to be as cheap as possible so that we can get the cheapest flights. The Bill will take us some way in that direction. I welcome the clauses requiring airports to publish full passenger service information, and I agree that it should include the whole passenger experience, from arriving at the airport to the annoying behaviour of some airports that prevent us from dropping people off without paying for parking or make us drop them off so far from the airport that they have to lug suitcases around—not to mention those trolley charges that result in us carrying three suitcases around the airport just to save £1. All those costs should be clearly published, so that I can compare what my full journey costs will be and ensure that I do not need a taxi from somewhere or have to pay all those little hidden costs, and so that I can also understand and fully appreciate what the cost and quality of my full airport experience will be.

Otherwise, this Bill will be a great step forward, and I strongly welcome it.

--- Later in debate ---

[James Wharton]

My hon. Friend, who is a member of the Transport Committee, has, in true expert fashion, predicted much of what I want to say. Later I will touch on some of the points that he eloquently raises.

The regional issue, which is so important for those of us in the north, as well as those in the south-west—indeed, it is important for those in any part of the country that is that much further from the capital—should not and will not go away. My constituency is served by Teesside airport, which covers three constituencies: Sedgefield—I see the hon. Member for Sedgefield (Phil Wilson) in the Chamber—Stockton North and my constituency of Stockton South. Teesside airport has quite a long and interesting history, which I will not dwell on, although the recent history, which is relevant to what I want to say, sadly shows a certain level of decline. In 2006, around 1 million passengers went through the airport; in 2011, the figure was fewer than 200,000.

When I say Teesside airport, some hon. Members look at me with a little confusion, because they will have heard it referred to as Durham Tees Valley airport. A few years ago the name was changed, against much local opposition and amid much local concern. As far as I can tell, whether by looking at maps or historical records, Tees valley as a geographical area does not exist, and Durham is rather a long way away from the airport. None the less, Teesside international airport was officially renamed Durham Tees Valley airport. As a local MP, I raised the issue over the summer. Indeed, I was involved in a campaign to change the name back to Teesside airport, because I know that the issue concerns many of my constituents and those in surrounding areas. Indeed, the Evening Gazette, an excellent local daily newspaper, ran the campaign quite prominently and, certainly recently, it was the second most subscribed to and commented on campaign that it had run. The campaign sparked off a great deal of comment and contributions from local people, because it goes to the heart of some of the challenges we face in that sub-region of the north-east, the strength of identity in Teesside and the value that local people place on it. However, a name alone would not change the future trajectory of an airport or its business or economic success.

[Nigel Mills]

I rise to give my hon. Friend some hope for his campaign. A few years ago, East Midlands airport changed its name to Nottingham East Midlands airport, in the face of huge opposition in Derbyshire and Leicestershire, which jointly fund the airport. The name was eventually changed back to East Midlands airport, so such campaigns can be successful.

[James Wharton]

I thank my hon. Friend, and I hope that in the fullness of time that is exactly what will happen. However, there is a more pressing issue, which is relevant to today, than simply the name of the airport, important as that is: the airport has recently been put up for sale.

Again, I will not go through too much of the detail of how the airport got into that position—the hon. Member for Sedgefield recounted much of the recent history earlier—but I can say with absolute certainty that the fact that it has been put up for sale is a cause of great concern for many of my constituents. We know—I know, as a local person and a local MP, and my constituents know—that only recently Teesside airport was vibrant and successful. It was a highly successful sub-regional transport hub that provided not only international flights, but quick and easy domestic flights down to London Heathrow. Those flights were provided by BMI—British Midland International—and when that service was withdrawn, that had a serious detrimental impact on what has proved to be the airport’s long-term future.

The issue was raised, at some length and on a number of occasions, by the right hon. Member for Newcastle upon Tyne East (Mr Brown) when he was Regional Minister, under the last Government. He campaigned diligently to have Heathrow slots reinstated for Teesside, on the basis that it was an important domestic route that would put passenger flow through the airport and play an important part in providing an economic transport boost to that part of the north-east. He campaigned hard, although sadly unsuccessfully. This is a cross-party issue, with, I believe, cross-party support.

That brings me to some of the specific parts of the Bill before us today. Subsection (1)(b) of clause 18, which deals with what the CAA has to take into account in putting conditions on an airport’s licence, refers to

“such other conditions as the CAA considers necessary or expedient having regard to the CAA’s duties under section 1,”

which I have already mentioned, and which include those relating to the continuity and range of airport services that passengers must be able to enjoy. In addition, clause 1(3) says:

“In performing its duties under subsections (1)…the CAA must have regard to…(d) any guidance issued to the CAA by the Secretary of State for the purposes of this Chapter”.

It is my contention that this Bill opens the door for the Secretary of State to instruct the CAA, through the guidance issued, that it must give proper attention and pay heed to the overall economic needs of the sub-region in the north-east.

I accept that this issue has been visited before. As I have mentioned, the right hon. Member for Newcastle upon Tyne East raised it a number of times when he was Regional Minister on behalf of the region as a whole. However, there is a new factor that should now be taken into account: the Government’s recent announcement—a welcome announcement for the economy in the north—that High Speed 2 is to go ahead. At the moment, HS2 goes up as far as Leeds. It will provide some travel time benefits for those travelling down from the north-east, but it does not yet reach stations in the north-east of England. I am sure that in the fulness of time it will do so. Indeed, I and other hon. Members—on a cross-party basis and across the north-east—will no doubt be making the case for investment to bring high-speed rail as far north as is necessary for our constituents to benefit from the economic opportunities that it provides.

None the less, in the foreseeable future, high-speed will not come up as far as Teesside, Newcastle or the north-east region at all. Therefore, although the Government have recognised, through their investment in HS2, the value of cutting journey times to the capital and ensuring that our country—and our nation—is as interconnected as possible, with high quality, high-speed journeys from north to south, they have not yet come up with a proposal that would help to bridge the gap that little bit further north, in the areas and communities that I and so many colleagues across the House represent.

HS2 therefore provides an opportunity for the Secretary of State to consider whether provision should be made for Teesside airport to be given particular weighting to ensure that it has a slot at Heathrow. Teesside will feel the benefits that HS2 will bring to the north, but not quite as acutely as those living in Leeds, for example, or in places from which they can travel to the stations that it will serve directly. Those benefits have been recognised by the Government, and the Bill provides the Secretary of State with the opportunity to set criteria that would allow the CAA to take into account the need for faster travel times from Teesside airport and from that part of the north-east that I represent.

This is both my appeal and my question to the Minister. My appeal is that the Department consider whether the guidance that will be issued under the Bill should take special account of Teesside’s unique position, just outside the envelope of HS2, so that it could benefit from regular, high-speed connectivity with the capital. My question is whether that interpretation of the Bill is accurate, and whether that option would be open to the Secretary of State if the proposals should become law. If it is not, I urge the Government to consider amending the Bill. If it is accurate, I am sure that colleagues across Teesside and the north-east will join me in urging the Secretary of State to ensure that the provisions are used to maximum effect to take into account the needs and views of individuals and businesses in my constituency and in the surrounding communities. They have used Teesside airport over many years and they have been well served by an excellent, local, well-managed service on their doorstep and offered a range of flights. Sadly, however, that service has gone into what I hope is a short-term decline in recent years. I ask for action to be taken, and for the Government to deliver the Heathrow route that would bring great benefit to the people whom I am proud to represent.