Operation of Air Services (Amendment etc.) (EU Exit) Regulations 2018

Viscount Waverley Excerpts

Tuesday 18th December 2018 Lords Chamber

[Lord Adonis]

I entirely agree with my noble friend and with the noble Baroness, Lady McIntosh, who rightly said that issues of first-order public policy were being raised in regulations. At the moment, whether they come before the House is almost entirely random. I also say in passing that there is a growing sense of frustration about this. The House is about to go into Recess in what is—let us be frank—a national crisis. It is going into Recess on Thursday and not coming back until the second week in January. By then, we will have literally a matter of days before we leave the European Union. We should be doing our duty and assembling here in Westminster and debating these issues regulation by regulation from the beginning of the new year. I might have something further to say about that when the Motion for the Adjournment comes forward on Thursday.

Turning to the specific issues at stake here, the situation is very serious. The report of Sub-Committee A of the Secondary Legislation Scrutiny Committee, which examined the regulations and—I echo the Baroness—did an excellent job on these and others, says of air carriers that,

“in the event of ‘no deal’ the UK expects to grant permission to EU carriers to operate at UK airports”.

The noble Baroness, Lady Randerson, said that part of the reason why we have such a big aviation sector is cheap airlines. They are part of the reason, but it is also that in Heathrow, we have Europe’s preeminent hub airport. It is one of the biggest earners for this country in terms of international income and the promotion of inward investment, because it is so successful. Anything that promotes discontinuity in operations at Heathrow will be lethal to its success, to our ability to attract inward investment and to be an aviation world leader in future. If our European partners and other European airlines think that we are not going to put in place all the regulations necessary to ensure that Heathrow operates completely smoothly and with no discontinuity whatever, they will very rapidly—the noble Baroness is nodding because she understands this completely—move their operations to Frankfurt, Charles de Gaulle, Dubai or other international hub airports that are at least as accessible as Heathrow in terms of facilities. The stakes are extremely high: one of our major national industries could be at stake if we get this wrong.

The Select Committee said that,

“in the event of ‘no deal’ the UK expects to grant permission to EU carriers to operate at UK airports. We expect this to be reciprocated by EU states granting permission to UK air carriers to operate to points in the EU. If a multilateral agreement with the EU can’t be reached, we would seek bilateral agreements with individual states”.

Buried in those words are matters of huge complexity and difficulty. Not only would we need a bilateral arrangement for each of the 27 other member states of the EU in the event of no deal; as my noble friend Lord Foulkes said, there are also the other 144 arrangements that we have in place which govern our international aviation. When the Minister replied to the heated debates in Grand Committee on these issues and was invited to give an update on the state of the negotiations with our 27 EU partners on the reciprocal arrangements and the other countries that are covered by them, she was unable to give a great deal of information. She said that,

“we are having conversations with the Commission and the member states about a wide range of issues. I am not able to give further detailed information at this moment”.—[Official Report, 21/11/18; col. GC 21.]

[Viscount Waverley (CB)]

Is the noble Lord able to say when the discussions can be kicked in with the member states, or does the Commission have total ownership of the situation until such time as Brexit actually comes about?

[Lord Adonis]

That is actually a question for the Minister, but my understanding of the situation—the Minister might correct me—is that we are, at this moment, having bilateral discussions. Indeed, they are, in effect, negotiations, because we have to make preparations for what will happen in the event of no deal with our 27 other member colleagues in the EU and the other countries with which the EU currently has bilateral arrangements. They must be taking place, because if they are not, we risk, in the event of no deal, having no legal basis for the operation of a substantial part of our aviation industry from 29 March.

--- Later in debate ---

[Lord Berkeley (Lab)]

My Lords, all noble Lords who have spoken so far have raised serious concerns about the future of the air services after 29 March. People will take very seriously the statement at the weekend advising people not to travel by air after 29 March—which I am sure was denied by everyone in whose interests it was to deny it. Apart from not knowing whether flights will operate, if you are going on holiday or on business there is an equally serious question as to whether, if you have booked a flight after 29 March, you will get any compensation if it does not fly, and from whom one will get compensation. It could be the complete end of the cheap holidays and cheap flights as we know them, which have been so successful here.

I will not repeat what other noble Lords have said, but a statement came to me last week from people in the ports sector, which I think is probably the same in that it covers all sectors. It said that all industries involved had to sign non-disclosure agreements before government would talk to them. This might be why we do not hear too much from the sector: it is frightened of saying things that, frankly, the Government might not like and of thereby being excluded from further negotiations. Perhaps the noble Baroness, when she responds, could explain why the Government think it is necessary for industries, which will be severely affected by this, to sign non-disclosure agreements. Their businesses are at stake and it is perfectly reasonable that they should know from the Government, with maximum transparency, what is going to happen, why and when. They can then judge what the effect will be on their businesses. My gut feeling is that it would be very unwise to book a holiday or a business trip after 29 March, until we receive the kind of assurances from the Minister that many noble Lords have requested.

[Viscount Waverley]

My Lords, the Minister might care to respond to another point. I recognise that the issue of air services is before us, but does she agree with—or can she comment on—the words of the Minister for European Affairs in France, who has said that the same issues apply to the Eurostar which will not be able to travel post-Brexit? Perhaps she would be kind enough to give some consideration to that point.

[Lord Judd (Lab)]

My Lords, the whole House should be grateful to my noble friend for having alerted us again to this crucial issue. There has been a lot of talk about holidays, but we must remember that a lot of families cross boundaries with sick or increasingly frail relatives; certainty about travel is actually crucial to their way of life. I cannot help feeling a little cynical; I believe many members of the public who have been blindly supporting the idea that “we must get out” will have a rude awakening when they are hit by the realities of what will happen on the travel front.

This is not just about air traffic, which we are talking about today. What disruption will happen to other means of communication, such as Eurostar or the ports? No definite information is available. Over and over again, those of us who are active in the community hear, for example, from business people, “Please just get some certainty into the situation; it is impossible to operate in the current atmosphere of uncertainty”. That also applies to universities and higher education.

There is one thing we must be very careful about: if one set out to design a nation that was utterly dependent on international relations in all aspects of its economic, private and social life, it would be difficult to come up with a better example than the United Kingdom. Central to a Government’s approach to what is happening should be how we get this right and preserve what we have. We must be careful not to join, inadvertently, a sort of emergency operation that asks, “What are we going to do about the catastrophe about to overtake us?” The real challenge is to say, “We must not let this catastrophe overtake us”. It is immensely urgent that we ensure an opportunity is given to all sane people in Britain, and in Parliament, to say, “No, we cannot go on with this nonsense; we really have to think again about leaving the European Union”.