Contribution
My Lords, I repeat my declaration of interest that I made on Tuesday as the non-exec chair of RVL Aviation.
I will say a word or two about the amendment from the noble Lord, Lord Grayling, and strongly support what he and the noble Baroness, Lady Bray, said. I wanted to ask the Minister to flesh out a bit the answer to the question that I asked at Second Reading. There are already consultation processes, as the noble Baroness, Lady Bray, mentioned. There is no specific one for the exercise of the direction power. I am keen that, if there are extra processes, they fit well together; we do not want one set of consultations at one stage and then, if the Minister decides to do some direction, another set. When the Minister responds and, I suspect, urges the noble Lord, Lord Grayling, not to press his amendment, I would welcome a clear exposition of how the current position works, how it would dovetail with any use of the power of direction that Ministers are taking in Clause 4, how they would expect to use it and how that would fit with the existing consultation mechanism. I am keen that we do not invent another consultation mechanism.
If that power of direction is taken and is used—although the Explanatory Notes say that they do not expect the Government to use it very much, as it is a backstop power—it is almost certainly going to be used in difficult or controversial circumstances, because it would not be needed otherwise. That is the position set out in the Explanatory Notes. It would be helpful to understand how that end-to-end process works. It may be that the Minister should come forward with an amendment on Report that sets out how the power would be used and consulted on, or at least how it will dovetail with existing consultation mechanisms. I am not clear about how that would currently work.
Finally, I back up the remarks made by the noble Lord, Lord Kirkhope, and the noble Viscount, Lord Goschen, about the charging mechanism. I want to set out some of the views from the International Air Transport Association. IATA strongly supports, as I do, and welcomes the Government’s intention to do airspace modernisation but has concerns about the charging regime. It thinks that the drafting is too broad and ambiguous, and risks undermining the international charging principles that exist.
IATA is also concerned—a concern shared by the noble Lords, Lord Kirkhope and Lord Moylan—about replacing the words
“operators or owners of aircraft”
with the undefined “persons”. It thinks that that significantly expands the pool of liable entities and breaks the link with service provision. It understands the need for flexibility for future entrants but think there should be a narrower definition that encompasses those but is not as broad as the one that exists.
IATA is also concerned about revised Section 75(7), which allows charges to be levied on the basis that services are merely
“available for use or benefit”,
irrespective of the actual use. That represents a fundamental shift away from usage-based charging, which is the agreed international regime.
IATA has a number of concerns, not about the principle of what the Government are doing. It recognises that there will be new users and technologies, and the need to change how charging is done, but there are some accepted principles about the user paying for these things. As the noble Lord, Lord Kirkhope, and the noble Viscount, Lord Goschen, said, that should be done proportionately, but it is not sufficiently backed up by the broad wording in the Bill as currently set out.
It would be helpful if the Minister could say what the thinking was behind the drafting; whether the Government agree with IATA’s views about whether the Bill is in accordance with existing principles; and whether the Bill would be improved by a tighter definition that absolutely encompassed new technologies such as drones and other potential things in the future but was not so broad, and explicitly reintroduced the link between the usage of airspace and the charging, rather than simply the theoretical benefit. The Bill would be improved if those changes were made, and I look forward to the Minister setting out the Government’s thinking about how its wording was arrived at.