Exiting the European Union (Civil Aviation)

Rachel Maclean Excerpts

Wednesday 10th June 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Rachel Maclean)]

I beg to move,

That the draft Civil Aviation (Insurance) (Amendment) (EU Exit) Regulations 2020, which were laid before this House on 5 March, be approved.

It is a great pleasure to debate this statutory instrument. It is my first SI debate on the Floor of the House, and I had my first ever SI debate only yesterday.

This draft instrument will be made under the powers conferred by the European Union (Withdrawal) Act 2018 and will be needed at the end of the transition period. As hon. Members are aware, the Government are committed to ensuring that the UK has a functioning statute book at the end of the transition period, while we continue to work to achieve a positive future relationship with the EU. Although the Government will seek to reach the best outcome for the UK and the EU, it is our duty to make reasonable preparations for all scenarios, including by ensuring that there is a functioning statute book, irrespective of the outcome of the negotiations. To that extent, we have conducted intensive work to ensure that there continues to be a well-functioning legislative and regulatory regime for aviation, including for insurance.

This instrument is made under section 8 of the European Union (Withdrawal) Act 2018. It is subject to the affirmative procedure because it transfers an EU legislative function to a public authority in the UK. This procedure also enables the right level of parliamentary scrutiny for the proposed changes.

EU regulation 785/2004 requires air carriers and aircraft operators to be insured in respect of passengers, baggage, cargo and third parties, and against other risks, such as acts of war, terrorism, hijacking, sabotage, unlawful seizure of aircraft and civil commotion.

The amounts for which carriers and operators are required to be insured are measured in special drawing rights, an international reserve asset created by the International Monetary Fund.

The EU regulation also requires air carriers and aircraft operators to demonstrate their compliance with the minimum insurance requirements set out in the regulation. Elements of the regulation were developed in the aftermath of the 9/11 terrorist attacks in the US. They make provision for exceptional situations where a failure of the insurance market means that carriers are not able to demonstrate that they are adequately insured in respect of all the risks specified in the regulation.

The withdrawal Act will retain regulation 785/2004 in UK law in its entirety at the end of the transition period. The draft regulations we are considering make further changes that are necessary so that the EU regulation continues to function correctly after the end of the transition period. The withdrawal Act will ensure that the same minimum insurance requirements for air carriers and aircraft operators that apply today continue to apply after the transition period.

The Civil Aviation (Insurance) (Amendment) (EU Exit) Regulations 2018, which were debated in Committee in October 2018, made changes to the retained regulation so that it continues to function correctly after EU exit. The need for this additional statutory instrument arose due to the EU adopting regulation 2019/1243, which amended regulation 785/2004, after the 2018 regulations were made. The purpose of this SI is to fixed further deficiencies introduced by those amendments.

The amendments made by this SI are technical in nature. Regulation 785/2004 includes powers for the Commission to adjust minimum required levels of insurance where international treaties make that necessary. The 2018 regulations converted those powers into powers for the Secretary of State to do the same via regulations. However, since the 2018 regulations were made, the EU’s amendments to regulation 785/2004 have replaced the Commission powers with new versions more closely aligned to the legal framework established by the treaty of Lisbon.

To ensure that UK legislation continues to function correctly after the end of the transition period, these regulations take the same approach used in the 2018 regulations for the previous versions of the Commission powers. They replace them with powers for the Secretary of State to amend the minimum insurance requirements by regulations. That is what the SI is for. In summary, no change in policy is made by these regulations; they make only minor technical and consequential changes to ensure that UK legislation on aviation insurance continues to function effectively after the end of the transition period.

As I said in my opening remarks, we continue to work to achieve a positive future relationship with the EU. However, this instrument is an essential element in ensuring that we have a functioning statute book at the end of the transition period. It makes technical changes to ensure that UK legislation on aviation insurance continues to function. I hope colleagues will join me in supporting the regulations, which I commend to the House.

--- Later in debate ---

[Rachel Maclean]

This is a great opportunity for Members across the House to express their support for the aviation industry in their own constituencies and across the whole country. The Government share that support.

The hon. Member for Bristol East (Kerry McCarthy) has given a clear and welcome commitment that she will be supporting this SI, although I understand that she may reserve the right to oppose and debate in the future, as is absolutely right. She asked about the transfer of powers from the European Commission to the Secretary of State. I can reassure her that as part of preparations for leaving the European Union, we, as a responsible Government, are preparing for all scenarios. We absolutely expect that the minimum insurance levels will apply for aviation in any scenario. She referred to the amount of SIs that we have to get through. Ministers are working closely with officials in the Department to ensure that we can reach those commitments, and we expect to be able to do so. We expect to stick to the commitments that we have given, especially on aviation.

The hon. Lady referred to the financial support that we are looking to provide to the aviation industry. The Aviation Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), has discussed those points at the Dispatch Box, and I will certainly take the hon. Lady’s comments back to her. A vast range of support has been given to businesses across the country, including many of the airlines that we all use. We expect that to continue and will keep all those measures under review.

The hon. Lady finally asked me a little bit about the Government’s position on social distancing and quarantine. As she will know, all the measures are kept under review, and our priority is to keep people safe and to be guided by the science. We will continue that dialogue because we understand the pressures on the aviation sector.

It is a great pleasure to hear from my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), who highlighted the importance of aviation in his constituency. I understand that there is a gliding club there. I am not sure whether he is a keen glider himself, but I wish the club well. I reassure him that we have already agreed, and have in place, a bilateral aviation safety agreement with the US. He also touched on air bridges. This policy has been introduced because it is our priority to keep people safe. We are looking into these matters closely and are keeping them under review as the position of the coronavirus pandemic progresses in this country.

[Gavin Newlands]

In looking at the potential dates for the introduction of air bridges, are the Government taking into account the different holiday seasons around the UK? England and Wales obviously have a significantly later holiday season than Scotland and Northern Ireland. Scottish and Northern Ireland airports will therefore be adversely affected if air bridges are brought in at the end of, or after, the Scottish and Northern Ireland holiday seasons.

[Rachel Maclean]

I thank the hon. Gentleman for his point. That matter is outside the scope of this particular SI, but I assure him that I speak to the devolved Administrations on a regular basis, so all these concerns are being discussed in the Department and I will certainly take his point back with me.

The hon. Member for Strangford (Jim Shannon) expressed his support for aviation security, and mentioned the Bombardier plant in his constituency. We are aware of all those concerns, and are keen to work closely with him. I discuss connectivity with colleagues from Northern Ireland in my regular meetings with them. The Government recognise the importance of preparing throughout the year to ensure that we bring forward the required legislation for all possible scenarios at the end of the transition period and for Parliament to have the opportunity to scrutinise it in the normal way. This instrument, as we have seen, is essential to ensure that the legislation on aviation, which is an important part of the regulatory framework for civil aviation, continues to work effectively at the end of the transition period. I hope that the House has found this informative and that it will join me in supporting these regulations.

Question put and agreed to.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Once again, I will not suspend the House, because the last piece of business passed very swiftly and I perceive that everyone who was intending to leave the Chamber has done so and that everyone who requires to be here for the next piece of business is here, so we will move immediately on.