Covid-19: Aviation

Wes Streeting Excerpts

Wednesday 3rd June 2020 Commons Chamber

[Kelly Tolhurst]

I thank my hon. Friend for his work as Chair of the Select Committee on Transport and the fair but firm way in which he is standing up for the aviation sector.

My hon. Friend asked about the Government’s ability to stop employers making poor use of the pandemic to slash terms and conditions. I certainly would not expect employers to use the pandemic as a chance to do so. I think most people would agree that terms and conditions are usually a matter for employees and employers, but employees have recourse to a number of options for support in cases in which that is happening. I highlight the fact that in crises such as this we would hope that all organisations that are taking such measures treat their employees with the social responsibility that one would expect. I will do everything in my power to make sure that that is understood by those organisations.

My hon. Friend asked about the ability to reorganise the slots process. He is right to raise that. The Government are currently legally prevented from intervening in the slots allocation process. However, we want airport landing and take-off slots to be used as effectively as possible for UK consumers. As the UK aviation market recovers from the impacts of this terrible disease, I want to ensure that the slots allocation process encourages competition and provides connectivity, so that is something I will be looking at.

The Prime Minister has been clear, and I will be clear again today, that the job retention scheme was not designed for this purpose. It will be for Treasury to review the specifics of the scheme, and I am sure that colleagues will be taking note of today’s proceedings.

The Home Secretary will be making a statement on the quarantine measures immediately after this, and I do not want to pre-empt her, but I can confirm that the measures will be subject to regular review. My Department, through the aviation restart and recovery unit, is working non-stop with the sector and Government partners to plan for the future of aviation, enabling it to recover. No option is off the table, and we are looking closely at air bridges, which are also known as international corridors. I will be working tirelessly, as I have done over the last 10 weeks, to do whatever I can to mitigate the impacts that have been felt by the aviation sector.

[Wes Streeting (Ilford North) (Lab)]

I congratulate the Chair of the Transport Committee on securing this urgent question. The aviation industry is looking to the Chancellor for leadership, but he is not here today, and it has been locked in a holding pattern once again. While the Treasury dithers and delays, the crisis continues to unfold, with 12,000 job losses at BA—a quarter of its workforce; 4,500 redundancies at easyJet; 3,000 staff at threat of redundancy at Virgin Atlantic; GE Aviation making a quarter of its global workforce redundant, with jobs at risk in south Wales; and Airbus describing this as the biggest crisis in its history. So where is the urgency, the clarity and the specific support package that the Chancellor referred to back in March?

This is a sector that contributes £22 billion a year to our economy, with 230,000 jobs across the industry and the manufacturing supply chain dependent on it. It needs to change to meet the challenge of climate change. So why did one industry leader tell the Transport Committee just a fortnight ago that the Government were “asleep at the wheel”? Can the Minister go back and wake the Treasury up?

We have been calling for an aviation sector deal. Can we have one? If so, by when? British Airways has taken taxpayers’ cash to furlough its staff. Why is anyone surprised by that? We warned the Government that this would happen. Will the Government now ensure that any bail-outs come with conditions to protect jobs, workers’ rights and taxpayers’ money? Will the Government ensure that any company in receipt of support from British taxpayers also has its tax base here in the UK? Will the Government hold them to tougher environmental targets to achieve our net zero ambition, rather than simply allowing them to go bust through Government inaction and incompetence?

Finally, we have the Home Secretary ambling along this afternoon with a face-saving quarantine plan that has huge consequences for our economy and without any publication of any evidence to support it on public health grounds. None of this is good enough. This is an issue for our whole economy. With respect to the Minister, her Department is neither use nor ornament. We need the Treasury to act. The Chancellor should be here. They should have turned up this afternoon, and I hope she will take that message back in the strongest possible terms.

[Kelly Tolhurst]

I welcome the hon. Gentleman to his place as shadow Minister. I am responding to this urgent question as the Minister responsible for aviation who has been working with the sector over the last 10 weeks to understand the impacts and the issues related to our airlines, airports and the whole aviation sector.

We cannot overestimate the impact that the coronavirus has had on the whole UK economy, and the aviation sector has been acutely affected. We have been working hard in Government, and it is pretty clear for most people to see the unprecedented level of support that the Chancellor and this Government have delivered across the economy, which has had a massive impact in the aviation sector. The Chancellor was incredibly clear that any business that had explored all the Government schemes and needed bespoke support as a last resort could enter into discussions with the Government. It is absolutely right that we request those private businesses to exhaust all other options before that, including raising capital from existing investors and exhausting all the economy-wide measures that are in place.

The job retention furlough scheme has had a massive impact in the aviation sector in keeping people employed. As I outlined in my opening answer to the urgent question, I will do whatever I can as Aviation Minister to encourage companies to use the furlough scheme and make use of the other Government schemes without making people redundant. We absolutely have not been asleep at the wheel. I am not sure that anybody else recognises that description. Of course, a bail-out by the taxpayer or any other Government support would need to comply with state aid rules and require us to meet our legal obligations, particularly on climate change.

On quarantine, the Prime Minister made it very clear at PMQs just now that we need to keep the infection under control, and the Home Secretary will introduce measures to try to mitigate it.