Air Travel Organisers’ Licensing Bill

Patricia Gibson Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 11th July 2017 Commons Chamber

[Mr Hayes]

I really must press on.

Appendix 4 of the annual report is categorical about the committee’s constitutional role, and it sets out the committee’s membership, which includes the Association of British Travel Agents, the Association of Independent Tour Operators, the Association of Airline Consolidators, the Board of Airline Representatives in the UK and the Travel Trust Association. The committee also includes up to 10 independent members, of whom one will be the chair. Of course, as I set out earlier, the committee’s independence and expertise mean that it is in a perfect place to do the very work that the hon. Member for Kingston upon Hull East perfectly properly recommended to the House and that the amendment seeks to achieve.

Therefore, in the light of the fact that the Government have already obliged in law to review legislation within five years and have set up the independent panel of experts to report; that I have committed to seek guidance on the important issues the hon. Gentleman raises and to write to that committee asking it to review the legislation; and that the committee will report more often than annually as necessary, it would be extraordinary if the Labour party pushed this matter to the vote. It would be unreasonable for it to do so, but in the end that is a matter for it, not for me.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Last week, there was uncharacteristic consensus in welcoming the Second Reading of this Bill, as it is perfectly desirable and sensible to update the ATOL scheme to ensure more protection for travellers when they go on holiday and to align it with the latest EU directive. However, there undoubtedly are a number of questions that will arise in relation to this scheme once the UK leaves the EU. We need cast-iron guarantees that the rights of and protections for travellers will not be diminished after Brexit.

On Second Reading, the Minister was clear in saying that he wished to protect passengers, but we lack the detail on that. We do not know when the UK will develop its own system of passenger rights and compensation in the aviation sector after Brexit, how similar it will be to current arrangements or how it will affect EU airlines and passengers. Scottish National party Members fully support the Government’s reviewing the impact of provisions under this amendment; surely it is right that they review the impact of the provisions to ensure that UK consumers are protected and are not disadvantaged by using EU-based companies. When we leave the EU, passenger rights must not be affected, and consumers and companies based in the UK and/or the EU need clarity on what their obligations are in respect of the ATOL scheme.

We have heard today that this will all be taken care of in the great repeal Bill, and I am sure we all hope it will. Last week, the Minister said he was keen to protect consumers, and I am optimistic that that will be in evidence today. His reasons for resisting reviewing the impact of provisions under this amendment do not seem clear. Periodic reviews still make sense; having a review within one year will inform the impact of the provisions and will still be helpful. The Minister is an eminent and sensible man, but I am at a loss here: if ATIPAC already carries out yearly reviews, why resist this? The reviews we are talking about merely write into legislation something that it appears is already happening. What has the Minister to lose? The committee provides advice, we are told, and this amendment writes into legislation—

[Mr Hayes]

This is very simple: if something is already happening—if it is already in law—one does not have to legislate for it again.

[Patricia Gibson]

The Minister is being a wee bit disingenuous here—

[The Chairman]

Order. That is not a word we would use, and I am sure the hon. Lady can think of something much more pleasant. The Minister is a nice man, after all, and I do not believe he would mislead the House.

[Patricia Gibson]

The Minister is an eminently sensible man, but the point is that I can only wonder why he is resisting yearly reviews which he has told us already happen. If they already happen, why not write them into this piece of legislation, if for no other reason than to reassure passengers as we face a post-Brexit world? I know he is an honourable man, and I urge him to reconsider and accept the amendment.

[Karl Turner]

The Minister is a terribly generous chap, but his attempts to pacify the Opposition with his promise of a letter to ATIPAC simply are not enough. That does not cut the mustard, so we will push the amendment to a vote.

Question put, That the amendment be made.

--- Later in debate ---

Air Travel Trust

[Patricia Gibson]

I beg to move amendment 1, page 2, line 10, at end insert—

‘(8) Regulations under subsection (6) may not be laid before Parliament until the Secretary of State has published an assessment of their impact and has launched a consultation on the proposed amendments to the definition of “Air Travel Trust.””

This amendment requires the Secretary of State to undertake an impact assessment and launch a consultation before bringing forward any regulations to amend the definition of Air Travel Trust under this Act.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Amendment 3, page 2, line 10, at end insert —

‘(8) Before laying regulations under subsection (6), the Secretary of State must publish a full impact assessment and consult on the proposals.”

This amendment would require the Government to undertake a full impact assessment and consultation before bringing forward regulations to create any new air travel trusts through an affirmative resolution.

Clause stand part.

[Patricia Gibson]

Amendment 1, which stands in my name and that of my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown), would require the Government to undertake a full impact assessment and consultation before introducing any regulations to amend the definition of air travel trust under the Bill. Clause 2 requires that—[Interruption.]

[The Chairman]

Order. There is a lot of conversation. I really am struggling to hear, and I am not sure whether the mic is picking up this speech. Would hon. Members please have their conversations when they have left the Chamber?

[Patricia Gibson]

Clause 2 requires only that the Secretary of State has an affirmative resolution from each House of Parliament, but that is not enough. The Government should be required to conduct a proper consultation and assess the potential impact of any proposed changes to the ATOL scheme and air travel trust that they intend to introduce through secondary legislation. Any proposals must be fully transparent, and consumers and businesses alike must be formally consulted in the process to allow for proper scrutiny. We trust that the Minister will accept that and our reasons for tabling the amendment.

[Mr John Hayes]

I can satisfy the hon. Lady entirely. I fully intend to ensure exactly what she asked for: full consultation and a comprehensive impact assessment in respect of any regulations to be made under these measures. On that basis, I hope she will withdraw the amendment. If she does not, she will look rather daft.

--- Later in debate ---

[Patricia Gibson]

In the light of the Minister’s assurances to the House, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 3, page 2, line 10, at end insert —

“(8) Before laying regulations under subsection (6), the Secretary of State must publish a full impact assessment and consult on the proposals.” —(Karl Turner.)

This amendment would require the Government to undertake a full impact assessment and consultation before bringing forward regulations to create any new air travel trusts through an affirmative resolution.

Question put, That the amendment be made.

--- Later in debate ---

Brought up, and read the First time.

[Patricia Gibson]

I beg to move, That the clause be read a Second time.

The new clause stands in my name and that of my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown). It would require the UK Government to report regularly on the effect of Brexit on consumer protection under the ATOL scheme and to report annually on the progress they have made.

Brexit throws up great uncertainties, not least in the aviation sector with regard to passenger rights, compensation schemes and how much change and/or stability can be expected. There is also the question of how EU airlines and passengers may be affected. The overriding concern about the Bill, welcome as it is, is that consumer protections must be safeguarded and, furthermore, that such protections must continue to be enhanced and updated as society and technology evolve, just as has happened during our EU membership. The UK cannot be left behind, stagnating in a post-Brexit world.

New clause 1 is an extremely important move to provide some comfort and confidence to consumers; a lack of guarantees will otherwise leave passengers vulnerable and might put people off booking holidays. That could only be bad news for our outbound tourism economy, which is so vital for jobs in Scotland and the rest of the UK. We intend to press the new clause to a Division.

--- Later in debate ---

[Patricia Gibson]

I end where I began by welcoming and supporting the Government’s measures to update the ATOL scheme to provide more protection for passengers when they go on holiday and to align it with the latest EU directives. I welcome the progress made in this evening’s debate, but I was disappointed to hear the hon. Member for Kingston upon Hull East (Karl Turner) complain that today’s process has taken too long. If he sees that as a problem, I suggest that he perhaps contributed to it with his extensive remarks. I am sure that we all enjoyed them, but he seems to have contributed to the problem that he identified.

[Karl Turner]

I did not complain that the process was taking too long; I simply made the point that time in this House is incredibly important. An awful lot of things that were discussed during the proceedings on the Vehicle Technology and Aviation Bill could have made this legislation, but time has been wasted. These matters took 45 minutes in Committee. That was my point.

[Patricia Gibson]

I believe that the Minister has taken on board the legitimate concerns expressed tonight about how consumers are to be protected and have their current rights guaranteed as we head towards a post-Brexit world. There must be no diminution or stagnation of passenger rights as society and technology advance. It has been heartening to see how the Bill has proceeded through the House, and I have been delighted to be a part of these debates.