Aviation Sector

Seema Malhotra Excerpts

Thursday 10th September 2020 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare) on securing this debate and the Chair of the Transport Committee on his work, his support and his Committee’s excellent report.

My remarks today reflect the situation around Heathrow, but are not limited to it. I thank and commend the local authorities around west London, and also west London business, Brunel University and others, for their remarkable efforts to come together for local rescue and recovery plans. I also welcome the call for an aviation communities fund from local authorities, particularly to support re-skilling, business growth and infrastructure.

This is a national emergency and the impact of not acting now to secure an aviation deal and to support businesses and aviation communities in the next few weeks will be devastating. The cost to the state will be far greater than the cost of measures to get us through even to the spring, when many companies expect to see demand grow. The message from employers is clear: aviation is much more than airports and airlines. It is the aviation fuel companies, retail, baggage handling, hospitality, security, logistics, facilities management, engineering, airline catering and much, much more. Their needs are different—some are paid for each flight, some are paid per passenger, and some are paid for services such as meals on flights—but their sustained success depends on each other. It is urgent to act now, because section 188 notices are being issued as companies plan for what they expect to be the end of furlough at the end of October.

[Jim Shannon]

One of the suggestions that the unions and others have put forward is that Her Majesty’s Government could mitigate the level of redundancies to recognise that those the hon. Lady has referred to, who could be made redundant, will have been paying national insurance of some 14% and their pensions as employees, while also saving the UK benefits and redundancy payments. Her Majesty’s Government could provide some funding—perhaps 25% funding—for each employee’s wages to retain the skills and, at the same time, ensure that the business can get to January and November next year where it needs to get to.

[Seema Malhotra]

The hon. Member makes a very important point. Indeed, may I put on record my thanks to Unite, GMB and the other unions that I have been working with for all that they have done, day in, day out, to support workers and their businesses? He also makes a very important point about the retention of skills. Airport businesses have said to me that it takes six to nine months to train somebody to work in such a complex environment. Even cleaning an aircraft is as much about understanding security and counter-terrorism as it is about being able to serve all those passengers and the company. I thank him for making that point, because it links to the issue that this is about not just individual employees, but our readiness to recover when the time comes and keeping our businesses in place.

It is important to act now. Tens of thousands of jobs could be saved by a flexible extension to furlough, allowing employers to have employees on reduced hours perhaps, which will mean that families are supported to pay their bills and to stay in work. If the Chancellor and the Transport Secretary do not do this, they are simply passing a preventable problem over to an already stretched Department for Work and Pensions. In Feltham and Heston alone, there has been a 74% increase—to more than 19,000 people— in the number of people on universal credit. The local citizens advice bureau has talked about the level of inquiries it has had on debt. People are now being forced to borrow from loan sharks to pay one bill as another red letter looms.

[Patricia Gibson]

No doubt the hon. Lady will share my disappointment that the Chancellor’s promise of tailored support has not yet materialised. Does she agree that ending furlough in October, just at the point when payment holidays are ending, will cause real difficulties for families? There is no respite for them. It really is time for the Government to step up and provide tailored support for furlough.

[Seema Malhotra]

The hon. Lady is absolutely right. She shows that families will look forward to Christmas with dread, rather than with aspiration and hope for the new year. In six months’ time, we could be seeing children who are preparing for exams after two years of disrupted education being evicted from their homes—that is the scale of what will happen. I request that the Government act quickly to ensure that we get support in place early and that we do not see a wait until November, when it could be too late.

A recent report by Oxford Economics has shown the scale of local jobs around Heathrow: 133,000 jobs are being directly and indirectly supported, including in the Prime Minister’s constituency. Following his response to a parliamentary question about membership of the expert steering group, however, I am concerned that the Minister is not hearing all the voices in aviation. Perhaps he will not mind if I write to him with additional suggestions for under-represented voices and academic voices that could be useful in thinking about the future of aviation.

In summary, I make five recommendations: working with employers, a flexible and targeted continuation of furlough to keep people in work until aviation recovers—other countries are doing it, and so should we. Business rates deferral has been called for by Heathrow—I have written to the Prime Minister about it; Heathrow has not said “waiver”, it has said “deferral”—to help with cashflow, which in turn will help other businesses. Reduced quarantine through increased testing will bring greater confidence to fly. I also recommend a slot waiver review, so that airlines are not penalised next year for being unable to use slots this year. Finally, I recommend investment for growth, including through a new communities fund.

That extension of furlough, however, should also be conditional. For example, Heathrow has issued its own section 188 notice and, on Dnata Catering, many employees have written to me to say that they are being forced to sign a new contract on reduced terms. Instead, those companies should be negotiating with their unions for a solution—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order.