Covid-19: Support for Aviation, Tourism and Travel Industries Debate
Full Debate: Read Full DebateRupa Huq
Main Page: Rupa Huq (Labour - Ealing Central and Acton)Department Debates - View all Rupa Huq's debates with the Department for Transport
(3 years, 2 months ago)
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Members who are not on the call list but wish to intervene—do we have anyone of that description? No, that is not necessary. In that case, I call Henry Smith to move the motion.
I beg to move,
That this House has considered support for the aviation, tourism and travel industries in response to the covid-19 pandemic.
It is a pleasure to serve with you in the Chair for this important debate, Dr Huq, as we seek to recover from the covid-19 pandemic, and I am delighted to see my hon. Friend the Minister in his place. I will be interested to hear his comments.
Aviation, travel and tourism were among the first sectors to face the negative effects of the covid-19 pandemic, which were almost immediate, and unfortunately, owing to the nature of those industries and the restrictions still in place, they will be among the slowest to recover fully. In normal times before the pandemic, more than 1.5 million people were employed in those sectors. Sadly, many of them have lost their job over the past 15 months or so. About 50% of people in the sector are still on furlough, which finishes at the end of September, and I fear that if travel, aviation and tourism cannot pick up meaningfully over the summer months, many of them will also unfortunately lose their job.
This is devastating for aviation communities such as mine in the Gatwick area. An assessment of unemployment from February 2020 to February 2021 showed an increase of 115% across the nation, but for the top 20 aviation communities the increase was 147%. I do not think we have yet seen the worst of the situation.
Do not mistake this for some parochial plea for support for these sectors because aviation and international connectivity are essential for the UK economy. In normal times, outbound travel accounts for a contribution of about £37 billion to our economy, and inbound travel accounts for £28 billion. That travel has not been able to operate meaningfully for a year and a half, and the impact has been significant. If we were able to operate in a more meaningful way this summer, it would make a contribution to the UK economy of an estimated £19 billion—quite significant.
The title of the debate refers to support for the travel and aviation sectors. The best way to support them is to allow them to meaningfully and safely operate. If that cannot happen, I am afraid the bill for unemployment benefits this coming autumn and winter will be a significant burden to the taxpayer. Many companies and employers in the sector will be coming to the Government asking for bailouts. Far better that we let the industry recover and make money for the UK Exchequer, whose bills are already significant, than cost it some more.
I pay tribute to the Government for the world-leading vaccination programme over the past six months. We were told just before Christmas that if we had a successful vaccination programme, that would allow us our liberty and enable us to get back to much more normal life. Yesterday, we hit the target of 60%-plus of people across the country who have been doubly jabbed with covid-19 vaccines. I fear that we are squandering the vaccine dividend that we were told would allow us far greater freedoms once again.
We are, quite simply, at a competitive disadvantage. Many countries in the EU and the world are allowing a far greater number of countries to be travelled to, particularly for those who have received full covid-19 vaccinations. This is not just about two weeks on the beach in a sunny environment, nice though that is. It is about global Britain and us being a trading nation. For every day that there is not meaning transatlantic travel between the UK and the US, an estimated £32 billion is lost to the British economy.
I welcome and support the Government’s traffic light system for international travel. It is absolutely right that for parts of the world where cases of covid-19 are still unfortunately far too high, we must protect ourselves against that and new variants. I support those quarantine arrangements, but for countries that have had a similar vaccination roll-out success and similar or lower infection rates than the UK, we need to have a much more pragmatic regime for amber and green list countries.
I welcome the fact that the Government are reportedly looking at requiring those who are fully vaccinated and travelling from amber countries only to test, rather than to quarantine at home. That would be very positive, but I think we need to go further. We need to expand the green list of countries—I welcome reports that it will be announced later today that Malta and the Balearic Islands will be added to that list—but the list needs to be far wider than that.
The cost and complexity of covid-19 testing for international passengers is a major disincentive for people to travel. For a family of four, it really becomes prohibitive. It is ridiculous that many tests are more expensive than the flight itself. Perhaps more rapid antigen testing for lower risk countries would be appropriate, particularly if we are also dealing with people who are fully vaccinated. If there is a positive test, they can have a PCR test to back that up. It is interesting that, of those who have been tested who have been able to travel, less than 1% have proved positive in that test.
This is about people’s jobs and livelihoods. It is not just about going on holiday. Airports are likely to lose a further £2.6 billion if we do not see meaningful opening up. We are losing about £60 million in exports throughout this period because we do not have people able to visit this country and spend their money here.
Finally—I want to make sure that as many colleagues as possible can take part today and I am grateful to hon. and right hon. Members from all parts of the country and across the House for contributing to this important debate today— I want to comment on where respect for the restrictions is beginning to seriously break down. We hear that Wembley will be three quarters full for the Euros final, because an exception will be made for VIP guests from UEFA to come to London. I do not mind Wembley being near capacity. I welcome that easing of restrictions, but what is not right is to have one rule for VIPs and another for everybody else. When parents cannot go to school sports days, VIPs should not be able to come to Wembley.
The answer is to open up in a realistic and pragmatic way, to save jobs and recover our economy from the devastating effects of covid-19. The best way to support the travel, aviation and tourism sectors is to allow them to operate, save those jobs and make money for our economy, rather than them being yet another burden on every taxpayer for years to come.
Given the popularity of the debate, the three Front-Bench spokespeople and the new finish time of 5.25 pm, I reckon that if everyone sticks to within four minutes, everyone gets in and Henry Smith has time for concluding remarks. I call Ben Bradshaw.
I congratulate my hon. Friend the Member for Crawley (Henry Smith) on securing this debate. He was spot on with his remarks about Wembley, much as I want us to win that match on Tuesday, and I also agree with the remarks made by my hon. Friend the Member for Bexhill and Battle (Huw Merriman), the Chairman of the Transport Select Committee. We do have an airport in Southend, which is very popular; I always have to balance that with the complaints about damage to the environment and night flights, but I am very proud of it.
I want to concentrate briefly on the tourism sector. A major aspect of the tourism industry is that it is seasonal, and Southend is a coastal town where the local economy thrives in the summer. With the extension of restrictions, many businesses in the tourism and hospitality industries will continue to suffer despite the recent warm weather. The Government have undoubtedly provided generous financial support packages, but many limited company directors and businesses in my constituency have frankly been left to fend for themselves. I ask the Government to implement a robust recovery strategy in the travel and tourism industry as we return to some sort of normality.
I have spoken to concerned business owners in my constituency who rely on tourists to eat in their restaurants, drink in their pubs and stay at their hotels. Grants were welcomed by many of my constituents, but they did not cover the fixed costs of operating small businesses, and those businesses do not, unfortunately, have the reserves to survive much longer. Many of them are running at a loss. The Government should provide further support in the form of extending the reduced rate of VAT and the business rate relief.
However, it is not just the hospitality industry that relies on the influx of tourists: it is the leisure and entertainment industries as well. Being a popular seaside town, Southend would normally attract plenty of tourists to our wonderful summer festivals and theatres, for example. Southend carnival has been cancelled this year, and the Leigh regatta, the Leigh Folk festival and the Village Green festival have all been postponed, which damages the local economy. I say again that, when coronavirus lockdown measures come to an end and restrictions are fully lifted, the Government should provide support to local authorities to help them cope with the influx of people to tourist hotspots such as Southend.
As chair of the all-party parliamentary group on Qatar, I have seen how helpful Qatar Airways has been to our country during the pandemic, transporting over 100,000 people safely back to the United Kingdom, and I say a big thank you to them. Qatar Airways is heavily suffering, and that country is on the red list despite having relatively few coronavirus cases compared with other countries, and despite a high proportion of its population having been vaccinated.
In conclusion, there are so many reasons why Southend should become a city next year. We are a cultural hub with a plethora of charming local boutique shops and brilliant stores, and if it is not being greedy, I think we should be the city of culture as well. Southend attracts many visitors each year to our beaches, our theatres, and the world-famous Southend pier. Tourism is a major part of our diverse economy in Southend, and while it will play a part in gaining us city status, the individuals and businesses who comprise the industry need urgent governmental support to recover from the pandemic.
It would not be a David Amess speech without a plea for city status.
We can all agree that of all the sectors affected by the pandemic, aviation, travel and tourism have been hit particularly hard. The Institute for Fiscal Studies has indicated that the aviation sector has been the hardest hit of the entire economy, with hundreds of thousands of jobs lost or under threat. The latest data also shows that travel agencies and tour operators suffered an 89% decline in output in the first year of lockdown, when severe restrictions were imposed across the travel industry.
If the traffic light regulations continue to have the impact that they are having, more support will be desperately needed. We need to retain the existing furlough scheme and self-employed income support for businesses operating in aviation and international travel, without tapering, for a minimum additional six months, with future reviews built in. Also needed is the creation of a new sector-specific recovery grant regime for travel agents, tour operators and travel management companies that rely on international travel for their revenues. Travel agency businesses receive all their income through commission paid close to their clients’ departure dates. Given the cautious restart of travel, they need additional financial support to help them through the coming months. The issue of travel agents carrying the cost of refunding card payments was raised earlier in the debate, and I raised it specifically with the Chancellor last April. It has still not been addressed.
International travel is extremely important to our tourism and hospitality sectors, but we also know that it is important to reduce the risk of importing new cases and new variants of the virus. Indeed, the new delta variant entered Scotland while Scottish restrictions were at their highest levels because the UK Government would not engage with concerns expressed by the Scottish Government. They were too slow to act. That could have undone all the hard work and sacrifice that populations across the UK have made to help beat the virus. That is not good enough.
We need to reinstate a four-nation decision-making approach to international travel, which was suspended by the UK Government as the Scottish Government urged more action. It must be recognised that the aviation industry faces one of the longest periods of recovery, given the impact of covid-19 on route networks. The French and German Governments have given more than twice the financial support for every aviation and aerospace job than the UK Government have.
The Minister will be keen to tell us about the support that his Government have already provided, but there is no escaping the fact that the French and German Governments have provided double the support that those jobs have had in the UK. Clearly, those Governments are backing their travel industries now to help provide a driving force in the economic recovery of their countries. I urge the Minister to do all in his power to provide further support to these sectors at this challenging time.
The penultimate Back-Bench speaker is another Scot, but in the Boothroyd Room this time. I call Neale Hanvey.
With Heathrow in my constituency, naturally I am worried about what is happening in both aviation and tourism. The number of people claiming unemployment benefit in my constituency has risen by more than 220% in the first year of the pandemic, so there is an urgent need for action.
I will make four brief points. First, I agree with the criticisms of the Government’s list system made by my right hon. Friend the Member for Exeter (Mr Bradshaw) and the hon. Member for Bexhill and Battle (Huw Merriman). The system is confusing and ineffective, and it needs reform based on the data we now have, but whatever system we use, it needs to be properly resourced. Also, there has been a lack of sufficient staffing support for border control at Heathrow. That has put existing staff under intense pressure, and even put their health at risk.
My hon. Friend the Member for Slough (Mr Dhesi) raised the issue of the quarantine system resulting at times in the abysmal treatment of families who have been forced to quarantine at great expense. On arrival at Heathrow, they have been crowded on to buses, often unsafely, and they often find that the booking for their original accommodation has been cancelled. When placed in accommodation, they are provided, exactly as my hon. Friend said, with inedible, inadequate or unsuitable food.
Secondly, my constituents—the workers in those sectors—want to get back to work and to get back to earning a decent living, but they know that doing so safely will take time. They are not unrealistic about that, so it is critical that the Government recognise the fact that some sectors will need continuing support. As my hon. Friend the Member for Jarrow (Kate Osborne) said, precipitously ending the furlough scheme and the financial support being provided now will force many of my constituents into either losing their job or having their wages cut even further. The Government need to provide some certainty and reassurance to the companies and the workers in those sectors that there will be continuing support to get them through the remainder of the pandemic.
My third point, regrettably, is that the appalling practice of fire and rehire, which has taken hold in our economy, started initially on any scale at Heathrow. Thanks to Unite, we fought off the worst aspects of the first wave of that attack on my constituents, but that does not mean that the threat has gone away. Other companies are persisting in what is effectively workplace bullying. That is why we need urgent legislation to ban the practice, not the mealy-mouthed, broken-promise approach that we have seen from the Government so far.
My fourth point is that, as we come through the current crisis brought on by the pandemic, we need to recognise that we must face up to the next crisis, which is the existential threat of climate change. The Climate Change Committee today criticised the Government for setting wonderful targets with no means to deliver them, and that is exactly the situation in aviation. As my hon. Friend the Member for Cynon Valley (Beth Winter) said, we need a sustainable aviation strategy, and we need it fast. It should be based on a clear, just transition programme so that communities such as mine are given resources to develop a local economic strategy that will ensure we benefit from the environmentally sustainable aviation sector and have access to skilled and well-paid jobs in other developing sectors of the economy. We need that urgently, if not tomorrow.
Finally, as a west London MP, I want to say this: let us end the ludicrous nonsense that building a third runway will in any way comply with our climate change duties.