Aviation Industry

Transport – in the House of Commons at on 11 March 2021.

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Photo of Andrew Gwynne Andrew Gwynne Labour, Denton and Reddish

What steps he is taking to help ensure the recovery of the UK aviation sector following the rollout of the covid-19 vaccine.

Photo of Amy Callaghan Amy Callaghan Shadow SNP Spokesperson (Pensions and Inter-Generational)

What recent discussions he has had with Cabinet colleagues on support for the aviation industry.

Photo of Virendra Sharma Virendra Sharma Labour, Ealing, Southall

What steps he is taking to support jobs in the aviation sector.

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

The Government have provided significant financial support to aviation workers and businesses. The global travel taskforce will report in April on a return to safe and sustainable international travel.

Photo of Andrew Gwynne Andrew Gwynne Labour, Denton and Reddish

Last week, the Chancellor set out the support he is providing to businesses until they can reopen their doors, but although the Office for National Statistics showed that aviation was the worst-affected sector, it was not given a single mention. Does the Minister agree that the support already provided to airports will not be enough to cover them losing many times that amount each month? Is he not missing a trick here both to help the sector to survive and help it to modernise to meet our climate change obligations?

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

The Government have given the aviation sector approximately £7 billion of support over the course of the pandemic. The Budget we heard last week from the Chancellor extended both the furlough scheme and the airport and ground operations support scheme for another six months. What we are doing to support and help the sector is the global travel taskforce. It is through getting people travelling sustainably and robustly that we will see brighter days ahead.

Photo of Amy Callaghan Amy Callaghan Shadow SNP Spokesperson (Pensions and Inter-Generational)

Duty free arrival was not part of the Government’s post-Brexit consultations, despite industry stakeholders asking for it to be introduced. The Tory Government decision to end VAT-free shopping schemes for travellers will cost hundreds of jobs across Scotland. Establishing arrival duty free outlets could offset some of that. Can the Minister tell the House whether he lobbied the Chancellor prior to that decision? If so, will he continue to push the Treasury to change its view and save jobs?

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

The hon. Member will understand that there had to be a change on that taxation regime at the end of the transition period. All taxation matters are a matter for the Treasury. They are kept under review by the Chancellor at all times, and I am sure he has heard very carefully what she said.

Photo of Virendra Sharma Virendra Sharma Labour, Ealing, Southall

The future of the aviation sector needs greening, which will bring lower pollution and new high-quality jobs. Will the Minister commit to working with the Department for Business, Energy and Industrial Strategy to increase the Aerospace Technology Institute budget, so that we as a country can focus on developing the technology that will support future zero emission aircraft?

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

The hon. Member is quite right that aviation must play its part in the net zero challenge. It is a challenge, but it is also an enormous opportunity. We are already working with BEIS through the Jet Zero Council and the working groups not only on new airframe types and new technology for aircraft, but on things like sustainable aviation fuel.

Photo of Gavin Newlands Gavin Newlands Shadow SNP Spokesperson (Transport)

It is simply not good enough. The Office for National Statistics confirmed that aviation has been hardest hit. This Government promised a sector deal but then did not deliver, barring a last minute and somewhat diluted version of the uncapped business rates relief available in Scotland. Let us recap: ending VAT-free shopping at airports and refusing to consider arrival duty free; the most indebted aviation sector in the world, now about a third smaller with thousands of jobs gone; and now EU cargo and chartered airlines operating in the UK without reciprocal rights in many EU countries—this Government have utterly failed aviation and its 1 million workers, have they not?

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

This is a Government who stand foursquare behind aviation, which is a real mark of global Britain. As I said, we have seen approximately £7 billion-worth of support going to the aviation sector. Through the global travel taskforce we will be expanding horizons even further. Most recently, the consultation has been announced on air passenger duty, which I note has not happened in Scotland.

Photo of Mike Kane Mike Kane Shadow Minister (Transport)

The Minister is strong on rhetoric, but weak on delivery. First, I thank the Secretary of State for writing to me to correct the record after our previous exchange and confirming how few times the Jet Zero Council had actually met.

On this global travel taskforce, the ONS says, as my hon. Friend Andrew Gwynne pointed out, that it will take three years for the sector to recovery. The Airport Operators Association is saying five years. What assurances are there that what the workstreams produce—are there any going on at the moment and is it meeting?—will be robustly implemented? We have not seen that so far with other announcements by this Government.

Photo of Robert Courts Robert Courts Parliamentary Under-Secretary (Department for Transport)

I simply have to disagree with the hon. Member. The first global travel taskforce reported in November, as promised. We had the robust release of the test to release scheme in December in time for the Christmas market. Now it is right that we take stock, look at the whole aviation sector, consult carefully and have a new GTT. We will, as we have said, report to the Prime Minister and publish the reports on 12 April, and 17 May is the earliest date on which international travel can resume. We are working with and meeting and consulting the sector on a weekly and daily basis. It is a major ongoing piece of work very much at pace.