Will the government back an expanding aviation industry?

6 hrs ago 7

My Lords, this is a very strange Bill; it is a Bill in search of a purpose, which proposes and transfers substantial powers to a regulatory body but which gives us no road map for how those powers are going to be used. In the debates we have had so far and in the amendments…

My Lords, this is a very strange Bill; it is a Bill in search of a purpose, which proposes and transfers substantial powers to a regulatory body but which gives us no road map for how those powers are going to be used. In the debates we have had so far and in the amendments we are looking at this afternoon, it is inevitable that there will be amendments to try to give the Bill a purpose, to limit the use of the powers, because their use has not been explained, and to get some better regulation directly into the Bill, given the absence of any suggestion for improvements in the legislation that we have before us. That includes some very good proposals that we will come to later to improve the lot of disabled travellers, for example. I can understand why people want to get something worth while into the Bill, which is otherwise this rather strange transfer of powers, in order to be able to trust this independent body. We know that there is no urgency about this because we know from the impact assessment that there will not be any costs or benefits for the foreseeable future, and that the CAA will be given about a year after the successful passage of the Bill, if it goes through, to contemplate and review.

 

I support my noble friend because he is trying to give the Bill an overriding purpose, which should be entirely at one with the manifesto, the plans and the stated intentions of both the outgoing and the incoming Prime Minister and the Chancellor of the Exchequer. I think we all agree, across parties, that it would be good if our economy grew faster than it has been growing since the great crash of 2008-09. Surely we can all see that this requires a sector-by-sector response, as well as changes in general economic policy that are not the subject of this debate.

My noble friend is right to try to make growth and competitiveness the twin aims. I suspect that the Minister is very sympathetic, but he will need to get colleagues and others to co-operate in speeding up work to try to ensure that the aviation sector—which is normally a fast-growing, modernising, important sector, particularly in an island country that needs good transport links—is one of the attractive means of increasing our activity and our growth, creating more and better-paid jobs.

This legislation covers issues that could make a very material contribution to that faster growth. It covers the question of airport slots. Will there be more of them, and is there a policy to try to create more capacity? What is the Government’s view on airport expansion? Will there be more expansion of smaller and regional airports to take some of the strain off the main centre in London? What is the plan for London, and when will we have the very large number of slots expanded? It is clearly under great pressure of demand.

Regulations on charging are mentioned but not detailed in this legislation. We have already heard from my noble friend about the possible tax charges on certain types of business premise, but we really need to hear from the Government what the charging policy is going to be for scarce airport space, particularly in London, where we are becoming uncompetitive against Schiphol, Paris, Frankfurt and some of the other continental airports that are our natural competitors. If you become not very price competitive, you start to lose the interlining and air-switching business, which can be handled by a big intersection airport such as Amsterdam just as well as it can be handled by Heathrow. We need a bit more guidance on how these regulations might develop and be included.

I urge the Minister to take off one or two of the veils and give us some idea of how these policies on improved regulation for the cost of use of airports, the amount of airport space, the allocation of slots and the general conduct of air traffic in our country might be deployed. I find it odd that, two years into a Government with a very strong majority and a strong mandate for quite a limited manifesto, they do not seem to have those burning desires, for example, to get our aviation sector really growing quickly. They are not answering the questions about these very basic things. How much airport space? How do you allocate the slots? What is the pricing? How much support do you give to the industry? What will the regulatory impact be on that industry? We all want safety regulation and good regulation so that the customer gets a decent deal. We do not want so much regulation that it throttles the industry here as an extremely mobile and fast-moving industry can shift its assets the following day to another hub airport somewhere else, taking a lot of the business away.


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