Jet Zero Council

Richard Graham Excerpts

Wednesday 14th October 2020 Westminster Hall

[Richard Graham (Gloucester) (Con)]

Thank you very much, Mrs Miller; it is a great pleasure to serve under your chairmanship for the first of what will be many occasions in this now reactivated Chamber. I congratulate my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on successfully calling for this debate and on leading it with huge aplomb and great detail and knowledge of how important jet zero is to the United Kingdom.

It is worth putting the debate into context. At the moment, we face the crisis of the pandemic, with huge economic and employment crises coming quickly towards us. Just as in the second world war, when we laid down the foundations for huge education and health reforms, so too our current duty in Parliament is to think about the longer term and about how we can help to create an economic strategy that drives growth, jobs and innovation for a global Britain that can still play a major role in the world’s modern transport systems. That is precisely where jet zero comes into play. This is the nation that delivered the world’s first jet engine, and this is the nation that can deliver the fastest and best jet zero project. It is encouraging therefore that, on the one hand, the Government are committing funds to invest in the necessary research and development and that, on the other, industry and manufacturing are committing huge resource to doing the same.

As the Member of Parliament for Gloucester, where many years ago, Frank Whittle’s first jet engine limped down the Hucclecote runway for its first flight, I am delighted that just down the road at Gloucestershire airport, in the constituency of my neighbour, my hon. Friend the Member for Tewkesbury (Mr Robertson), huge work is going on between Electroflight—an entrepreneur and innovator-led company—and Rolls-Royce, to create the world’s first electric aviation engine. That project, which uses the acronym ACCEL—Accelerating the Electrification of Flight—is one step towards the goal that my hon. Friend the Member for South West Bedfordshire outlined.

It is an exciting project, but it is not just about Electroflight and Rolls-Royce. It also involves Airbus, which is the giant that effectively creates a network of mainframe contractors across the west of England—broadly, up the M5—and, when it comes to sub-contractors, across the whole country. The opportunities are therefore considerable, because Airbus stretches across the world. The project will impact all of us who have the privilege of serving as the Prime Minister’s trade envoys, particularly in Asia, where aviation will carry on growing, creating huge demand for all sorts of new aircraft.

New aircraft will probably be smaller compared with the previous tendency to buy larger aircraft. Of course, earlier this week, we effectively saw the end of the Boeing 747, which is the start of a trend in a different direction. The world expects to be able to travel, but also to be able to do so in a much greener way than in the past. For those of us who, like me, were airline managers in the ’80s, when it was unimaginable that anything other than carbon fuel would be used as the means to drive our aircraft, this is an especially exciting period.

What we all find exciting about this project is the way that industry is really excited to be working with the Government on an industrial strategy in which everybody’s aims are aligned. I am sure that the Minister will say more about the White Paper, which I believe will be published shortly and will lay out the Government’s ambitions for industrial strategy a few years since the creation of the Department for Business, Energy and Industrial Strategy by my right hon. Friend the Member for Maidenhead (Mrs May). I hope it will also set out how innovation and quality will drive us forward, and how our focus—whether in space, with satellites and launching pads, or on new engines, lighter ways of manufacturing aircraft, and all the things that make up the 35% of an Airbus that is made in the UK—has the full support of Government and, I hope, of Members of Parliament across the House, so that industry will know that in the aviation and aerospace sectors, the nation’s Government and representatives are fully behind its efforts to produce a newer, greener and more sustainable form of international transport.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to serve under your chairmanship, Mrs Miller. I congratulate the hon. Member for South West Bedfordshire (Andrew Selous) on securing this debate and leading it so admirably. I apologise in advance: I have a funny feeling I will repeat a lot of what he said, but that shows agreement. He hoped for cross-party support, and I think that will be the outcome of today’s debate.

The hon. Gentleman correctly set out how important aviation is overall to the UK in terms of the £52 billion it brings to the economy. At the same time, we have to recognise, and reconcile with that fact, the challenge of achieving net zero, despite an increase in demand going forward. Interestingly, that concurs with the findings of Climate Assembly UK, which recently reported. As citizens, they accept that there will be a continued increase in the use of aircraft, but there need to be changes, in terms of some of the solutions outlined today, in order to get the balance right and achieve net zero. I note that they do not think that there should be quite as big an increase in world aviation as is projected.

As the hon. Gentleman set out, we obviously need to find new solutions, with sustainable aviation fuels being integral to that—I will return to that issue. He also highlighted the hydrogen fuel system getting developed in his area—in Bedford. I wish that well. I also agree with his calls for additional Government investment, particularly the £25 million that he says is needed to get the Whittle laboratory under construction next year. It will be good to hear what the Minister says on that.

I also agree with the call for an airline scrappage scheme. That would obviously generate turnover of aircraft in order to get new cleaner, greener aircraft, and it could generate another spin-off—the work that would be involved in decommissioning the aircraft that were scrapped. The Prestwick aerospace cluster, which is adjacent to my constituency, is looking to move into that market, so if the Government helped to incentivise the market with an aircraft decommissioning or scrappage scheme, that would certainly be really welcome. I would also like to suggest a bit of worker rep on the council. I hope that that is something the Government could look at.

The hon. Member for Gloucester (Richard Graham) gave us a wee bit of a history lesson on the original jet engine and spoke about the development of the electric jet engine. Obviously, we want to see that developed. Also mentioned was the importance, when a big company such as Airbus is involved, of a UK-wide supply chain and all the spin-off jobs that come from that. That is really important, and it is crucial that we remember that.

Next up was the hon. Member for Newcastle upon Tyne North (Catherine McKinnell). She said of her comments that hon. Members might pose the question, “How does this relate to jet zero?” And I must admit that, initially during her contribution, I did wonder. But I accept the argument: we do have to sort out the here and now because there is an aviation crisis that needs to be resolved. She correctly highlighted the injustice that has been perpetrated by BA and similar redundancies from easyJet. Unfortunately, the Government response has not been robust enough. I would remind people in the Chamber to support the Employment (Dismissal and Re-employment) Bill promoted by my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands), the fire and rehire Bill, which would stop companies such as BA treating their employees like cattle, disposing of them and rehiring them on lower conditions.

I commend the hon. Lady’s work as co-chair of the all-party parliamentary group on sustainable aviation. I agree that there needs to be international collaboration on the use of sustainable aviation fuels, and it is important that we get jobs located where they are required and where currently local economies might be struggling. The proposals for where the sustainable aviation fuels may be located back that up. It would create much-needed jobs where they are actually required.

The hon. Member for South Cambridgeshire (Anthony Browne) also does good work, as chair of the all-party parliamentary environment group. He, too, highlighted the importance of the challenge that we have going forward on climate change. It was good to hear about the work being undertaken with Faradair in terms of hybrid and electric planes. Again, we hope that that leads the way, but he correctly highlighted Norway, which, yet again—it leads the way on so many things—has a commitment for short-haul flights to be fully electric by 2040. It is worth noting that Norway leads the way in relation to electric vehicles, the use of renewable energy in terms of hydro, and its sovereign wealth fund, created from its oil funds. We really need to look at Norway for lessons and copy it instead of just always talking about the UK being world leading. It is a fact that other people do this.

I agree with the suggestion about revisiting air passenger duty and reflecting the efficiency of aircraft emissions. I think the Government need to look at that. Another elephant in the room, it seems to me, is the fact that kerosene, which is used mainly for aviation, is still zero duty rated. That is unsustainable going forward for trying to incentivise the use of sustainable aviation fuels. We need to look at the tax system in the round to incentivise use of clean green fuels and generate an income for reinvestment in that sector.

The hon. Member for St Austell and Newquay (Steve Double), as always, stood up for regional airports, including his own. I add my voice to the call for the support of regional airports; that is vital. The hon. Gentleman made the good point that the initial short-haul flights will be between regional airports; we need to remember that. I do not quite share his belief in the Prime Minister’s vision, but hopefully I will be proved wrong and we will see that delivered in the future.

No debate would be complete without the hon. Member for Strangford (Jim Shannon) speaking at length about the United Kingdom of Great Britain and Northern Ireland and goading me about “better together”. It is great to see him back in his place, sticking up for the aerospace industry in his constituency and again highlighting the importance of sustainable aviation fuels and the ask of industry from the Government. It is good to hear how much faith the hon. Gentleman has in the Minister. Hopefully, the Minister will repay that faith in his summing up and confirm the money that the Government are going to invest.

Aviation, as we heard, is a vital sector for connectivity, outbound and inbound tourism, and even exports of goods. For those reasons, it is vital that the industry is supported. Tonight, I will be launching a petition on support for the travel industry, because the Government really need to step up to the mark there.

On a positive note, I welcome the setting up of the Jet Zero Council. We want to see the green recovery in general and the UK Government have an opportunity to lead the way in sustainable aviation. It is fine to be a world leader in terms of the legislation for 2050 net zero, but we need the corresponding action and investment to back that up. As others have said, the UK Government have missed out in the past in offshore and onshore wind, where there was not the drive or the vision in the Government investment to make the UK world leading in that. The manufacturing and other aspects went elsewhere. As such, we need to step up to the plate in terms of net zero aviation.

As for being world leading, the Scottish Government set net zero legislation before Westminster, with an earlier date of 2045 for net zero, and they are the first Government in the world to include international shipping and aviation within the net zero targets. They have also committed to decarbonising aviation by 2050. Can the Minister advise whether the UK Government will follow the SNP’s lead in Scotland and the advice of the Committee on Climate Change, which is to include international aviation emissions within their net zero targets?

The UK is hosting COP26 in Glasgow next year, which is a tremendous opportunity to lead the world in a number of initiatives and commitments. The UK Government’s “Decarbonising Transport: Setting the Challenge” document stated:

“Internationally, we are committed to negotiating in ICAO for a long-term emissions reduction goal for international aviation that is consistent with the temperature goals of the Paris Agreement, ideally by ICAO’s 41st Assembly in 2022.”

Can the Minister advise what progress has been made regarding those negotiations and whether there are any commitments that can be included within the nationally determined contributions for COP26? That certainly would set a tremendous example.

As we have heard, one of the key aims of the Jet Zero Council is the delivery of sustainable aviation fuels plans. Again, that is a chance to be world leading, but action is needed fast, especially as we have heard that Norway has mandated airlines to reduce the amount of standard aviation fuel that they use. France and Germany are driving and leading sustainable aviation fuel collaboration, so the UK needs to move fast.

Other hon. Members, particularly the hon. Members for Strangford and for South West Bedfordshire, highlighted the need for the Government to provide the £500 million asked for, which would deliver the private investment to see sustainable aviation fuel plants up and running in the UK. In terms of the Government-backed loan guarantees, I suggest that if the Government can find £20 billion for Hinkley power station, and potentially another £40 billion for two more power stations, the £500 million over a period of five years is quite a small ask. I look forward to the Minister’s confirming that in his summing up.

When we look further, we have renewable transport fuel obligations to further incentivise the use of sustain- able aviation fuel. The hon. Member for South West Bedfordshire also touched on airspace modernisation. That in itself will facilitate a reduction in emissions, by allowing more efficient flightpaths, but the modernisation programme is currently at risk because it is being delivered by NATS, which relies on income from airlines. Reduced numbers of flights mean reduced income for NATS, and that puts the modernisation programme at risk. Direct support from Government is something else that the Minister needs to consider.

[Richard Graham]

On nuclear power, does the hon. Gentleman agree that one of the crucial things about the electrification of short-haul flights is that we will need more electricity? In that context it is important to replace our nuclear power stations, to generate that electricity.

[Alan Brown]

Yes, I agree it is important. They need to be replaced because half the existing nuclear power stations will be phased out in the next four years. However, they do not need to be replaced by nuclear; they should be replaced by renewable energy, so I absolutely do not agree on that point.

We also heard about Airbus being a Jet Zero member, and how it is developing the ZEROe hydrogen aircraft. We look forward to hydrogen aircraft being up and running. I draw Members’ attention to a post-briefing note that highlights the fact that hydrogen emits twice as much water vapour as existing jet fuel. That is a potential issue, and perhaps the Jet Zero Council could look at that, in collaboration with the Government. The need for wider sector support from the Government, by doubling of Aerospace Technology Institute funding to £330 million a year, is also rightly identified. What assessments have the Government made of those asks?

There seems to be cross-party support for Jet Zero and the aim to get net zero aviation by 2050, but there are clear asks for the Government, and I look forward to hearing the Minister confirm those financial commitments that have been asked for around the tables.

3.36 pm