Catherine McKinnell
MP for Newcastle upon Tyne North · Labour · United Kingdom
“The family of a terminally ill constituent contacted me in desperation last month after trying to resolve the pension issues of their family member since January. She died yesterday, with her pension still unresolved. Can the Minister be more specific for that family about what will be done to resolve this issue?”
“As the UK trade envoy to Italy, I thank the Secretary of State for confirming the GCAP funding in his statement. As MP for Newcastle upon Tyne North, I add my voice to those who want to see this as an opportunity to genuinely spread investment and opportunity that will build strength and resilience in our people right across the UK—they a…”
“This report is welcome, but that does not make its existence any less tragic. Far too many mothers and babies have been failed, including mothers like my constituent Amie, who late last year was turned away repeatedly, despite reporting reduced movements. Her baby Seren was born stillborn.”
“Failures to address these issues have significant effects, both on the public finances and on the most vulnerable people in society, and, indeed, they are issues that are often reflected in our constituency mailboxes. I was contacted recently by a young woman who had reported child sexual abuse to the police last year.”
“Her husband was the victim of an assault by the defendant, who had raped his wife. They were forced to wait four hours for the trial to begin. They were eventually told that the defendant would arrive and that the delay to his delivery was causing the delay, but it had a knock-on effect on additional days in court.”
“Friend has said, we need a court estate that is fit for purpose in order to maximise the use of these additional days. I too have visited my local court, in this instance Newcastle Crown court.”
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“To put it politely, the Minister is severely optimistic if she thinks that this is straightforward, because it is not. She will know that a settlement agreement is only entered into when neither party will accept liability. Therefore, it is not as simple as the employer accepting liability for something and entering into an agreement. Would it not make more sense to simply accept the amendment and to exempt all such agreements and arrangements from the cap altogether?”
“Despite the attitude of Conservative Members, mumbling, “Get on with it”, my hon. Friend is making an important point. There has not been sufficient time to consider the significant changes and their ramifications, which my hon. Friend is setting out. He rightly says that they have wide-ranging implications that need proper consideration.”
“Does my hon. Friend have a proper understanding of why the amendments came so late in the day? Have the Government explained the lateness of their addition to the Bill?”
“My hon. Friend is making a powerful case, and I think his points are meeting with agreement across the Committee. Any parent who ran a family business would like to give a child an opportunity to join it, but if the child wanted other opportunities, any parent would also go to any length to use their contacts and the people they know to try to find those opportunities. The corporate parent—the local authority—therefore has a responsibility not only to use its own means to give opportunities to the children it takes care of, but to use all means available to find other opportunities for them.”
“I reiterate my full support for my hon. Friend’s suggestion that the least the Government can do at this stage is to monitor the situation, because the corporate parent could and should do so much more for looked-after children.”
“My hon. Friend is making a powerful case, but it is also important to look at both national and regional statistics, to ensure there are no regional disparities. I know that, generally, the apprenticeship start figures are suffering quite significantly in my constituency compared with the national average, yet I do not have the statistics for disabled people, and I worry that that would be more marked because of the barriers that are currently in place. We should be careful not to take a blanket approach—we should look at geographical differentials as well.”
“I, too, warmly receive the Minister’s assurance that she will look into the matter. She set out a whole range of very positive developments and activities that the Government are focused on to improve outcomes. I would have thought it would be in the Government’s interest to monitor some of the figures, particularly under clause 70, to show the benefits and trends of the changes and to enable them to assess whether those changes are working or others might be necessary.”
“My hon. Friend raises an important point. I advise the Government to give proper consideration to the potential unintended consequences of placing upon local authorities a target that is perhaps difficult to meet. It might encourage local authorities to keep services in-house when they could find better cost value in outsourcing. I do not think the Government would want to encourage that, so they should probably bear that in mind when they draw up the regulations and as part of the consultation.”
“To reiterate the point made by my hon. Friend the Member for Wakefield, it is very important that there is a partnership model between the FE sector and the employers who will be employing the apprentices, particularly because of the levy that the Government are talking about imposing and how that will work practically. From talking both to employers and the FE sector, I understand that there is a lot of uncertainty about how the proposal will work, but that they will have to work in partnership, so it would make sense to have a partnership at every level of that relationship.”
“I have a query. The way in which the Bill has been presented has prevented a huge amount of scrutiny from taking place prior to this Committee starting. Is it correct that the trading standards inspections would take place only in training providers and not where apprenticeships are supplied in-house by employers? I would be grateful for some clarification either from my hon. Friend or the Minister on that point.”
“I am slightly baffled by the Minister’s comments. Northumbria police force expects to have lost about £150 million between 2010 and 2020, and its workforce has already been cut by a quarter, split equally between police officers and police staff. Will he clarify in what way that is a generous settlement?”
“I am sure the hon. Gentleman will have detected that the vast majority of north-east councils, save for Northumberland, will get nothing from the transitional fund. The argument he appears to be confirming in his speech is that the decisions taken by the Secretary of State to grant transitional funding are based on staving off a Conservative rebellion, rather than on actually giving the funding to local authorities that need it the most.”
“It is a pleasure to serve under your chairmanship, Sir David. Does my hon. Friend share my view that this is such an important issue for small businesses because we know that the issue of late payment, in particular, is a real challenge for them? It is in the Government’s interest that this body is as influential and powerful as it can be and that those small businesses see it as a visible presence and feel that it is their champion, not the Government’s or anybody else’s.”
“My hon. Friend is making a very important point. I wonder whether the Government have considered the importance of the role of the small business commissioner and the number of businesses that are likely to get in touch with them, because there is such a gap in the market for advice for small businesses. I know that from my constituency postbag, many small businesses come to me looking for advice and signposting for where they can get help and advice. My hon. Friend rightly points out that the proper resourcing and independence of the post are important for businesses to feel confident in the service provided.”
“To clarify, I feel the reason so many businesses come to me as an MP for advice on this issue is because the support and assistance provided to small businesses under the previous Labour Government disappeared in 2010. That has had a huge impact on small businesses and their ability to understand and navigate the system to find help and advice. Therefore, they come to their MP. I am always pleased to hear from businesses but it is a gap in the system in that they do not know where to go locally.”
“I very much agree with the point that the Minister has made, but I must say that it is Labour that has upped the ante in terms of female representation on this Committee. As ever, in terms of 50:50, the Government are letting us down.”
“I agree that the Minister is making a reasonable point, but does she accept that the Government are being cautious in setting up the body, possibly out of fear that it could become more powerful than she anticipates? If it begins to direct any concern towards the Government or state changes that the Government ought to be making to support small businesses, it will run the risk of a conflict of interest with the Government’s direct appointment of the commissioner.”
“While the Minister is on her feet, will she clarify exactly why this should not be a Crown appointment, rather than a ministerial one? Will she clarify that for the Committee and members of the public, because it is not clear why that is the case?”
“The Minister gave a short but fairly robust response to some of the concerns that our amendment seeks to address. Would my hon. Friend agree that it is not just about the reality—whatever that might be—but about the perception as well? It is really important for small businesses to have confidence in the commissioner. Perhaps the Minister is not taking on board some of the concerns that people have, whether real or perceived, about the Government’s relationship with big business.”
“Speaking of areas of the country that depend on these issues, I have a useful figure that may help my hon. Friend. The accounting, payroll and human resources corporation Sage, which is based in my constituency, has suggested that £55 billion in outstanding invoices is currently owed to the UK’s small and medium-sized businesses. That is an astounding figure and of great concern. The CBI’s recent survey of north-east SMEs found that 53% of the worst offenders are large firms, but that a third come from the public sector, so the public sector represents a significant proportion of the significant sum of money that is outstanding.”
“I thank my hon. Friend for securing this very important debate. In the light of the Prime Minister’s recent letter to Oxfordshire County Council, does she share my concern that the significance of the problem seemed to take him by surprise?”
“My hon. Friend is being generous in taking interventions and is making a brilliant speech. Does she share my concern not only about the funding shortfall, but about the gross unfairness of the 2% council tax precept? Areas such as Newcastle, with the greatest social care needs, also contain the people who are least able to pay that additional sum of money. Once again, the Government are hitting the most vulnerable the hardest.”
“I thank my hon. Friend for giving way. I did not mean to interrupt his flow; he is making an important speech. The Communities and Local Government Committee has published an important report today, not about Scottish devolution but about English devolution, and it contains major criticisms of the lack of openness over deal negotiations. Does he share my concern that the Government seem to be operating in an underhand way in relation to these negotiations as well?”
“It is vital that these negotiations have the confidence of not just the Scottish people, but the people of the whole UK. Does the Secretary of State recognise that there is a significant risk of these negotiations suffering from the same problems as the negotiations over devolution in England, which the Communities and Local Government Committee report published today clearly states have lacked openness?”
“Those decisions are not new and include where to build the new runway to provide the capacity we need for the future and how properly to support regional airports during a time of considerable upheaval with devolution. Time and again, the Prime Minister has kicked the can down the road rather than face up to the challenges. It is not just Heathrow or Gatwick that loses out from this chronic indecision. The future growth and sustainability of the UK’s regional airports and, by extension, the growth of our regional economies, are equally put at risk.”
“The vast majority are carried by Emirates on its long-haul service to Dubai and last year saw the first ever trans-Atlantic service from Newcastle by United Airlines to Newark, which is set to return this summer. Newcastle international airport makes an invaluable contribution to the north-east’s proud claim to be the only consistently net exporting region in the UK, just as other regional airports make an invaluable contribution to their local economies. This is when we come to the purpose of today’s debate. The Government are facing critical decisions that will determine the future of the UK’s aviation sector, which in turn will have a major impact on regional economies.”
“As the Minister knows because he came to visit, it is the largest airport in the north-east and the 10th largest in the UK. It also happens to be the single largest employer in my constituency and is proud of its public-private partnership model, with ownership between the seven local authorities and AMP Capital. Indeed, it served a record 4.56 million passengers in 2014 and supported 3,200 jobs directly on site and 12,200 indirectly. It contributes over £581 million in gross value added to the north-east economy, including £181 million in tourism impact and 1,750 tourism jobs. Newcastle airport exports well over £300 million of goods every year.”
“I beg to move, That this House has considered regional airports and UK airports capacity. It is a pleasure to serve under your chairmanship, Ms Vaz. I am delighted to have secured this debate, which could not be more timely in a year when I hope that the Government will face up to some of the most significant decisions in the aviation sector for decades. That could not be more important for regional airports, such as Newcastle international airport in my constituency and countless others around the UK, which are the backbone of regional economies and, therefore, the economy as a whole. The interest in and concern about the issue is demonstrated by the number of hon. Members present. Newcastle international airport celebrated its 80th anniversary last year.”
“I thank my right hon Friend, who makes my argument for me. Hon. Members will remember the Chancellor’s claim in 2011 of a march of the makers, which he has since forgotten, and his more recent talk of a northern powerhouse. How does he expect the makers to march or the north to become a powerhouse if they cannot export or do business with the rest of the world? That is what is at risk thanks to the Government’s dither and delay.”
“My hon. Friend excellently makes my argument for me. I want to talk about the most important decision on the desk of the Secretary of State for Transport at the moment: airport capacity and expansion. Having pledged to cancel the Labour Government’s plans for a third runway at Heathrow, the coalition Government set up the independent Airports Commission in 2012, chaired by Sir Howard Davies, to assess and to report on long-term aviation capacity options by summer 2015. The commission did exactly what it was asked. Having considered a plethora of options, it decided in its interim report in 2013 to narrow these down to just three, all of which were in the south-east. In July 2015, it produced a thorough and comprehensive report assessing each of these in turn.”
“As I mentioned, the daily Emirates service from Newcastle to Dubai has been transformational, facilitating millions of pounds in exports from the north-east to the middle east, but it has been so successful because it is operating to another hub airport, from which those goods and passengers can travel on, throughout the middle east, to Australasia and beyond. I hope that we will see more of those links developing in the future. Regional airports play a significant role in providing their own direct connections worldwide, in conjunction with connections through a hub such as Heathrow.”
“The trend in recent years has been towards a hub-and-spoke model of aviation, whereby airlines have routed all operations through a hub airport and joined with other airlines, creating alliances, to provide customers with hundreds of destinations, all accessible through a single hub. We can look all over the world and see that the hub-and-spoke model is key, from the likes of Schiphol, Charles de Gaulle and Frankfurt in Europe to the rise of the increasingly dominant middle eastern hubs in Dubai, Qatar and Abu Dhabi, not to mention the well-established far eastern hubs such as Singapore and Hong Kong. Of course, Heathrow stands alongside those, accounting for 70% of the UK’s scheduled long-haul flights and serving 75 unique destinations. That is not to say that long-haul routes are neither valuable nor viable from regional airports.”
“It recommended that any new runway must be accompanied by a ban on night flights, which is possible only with expansion anyway; a legally binding noise envelope so that noise levels do not exceed current limits; a new aviation noise levy on airport users to fund a mitigation package for local residents; a £1 billion commitment from Heathrow for community compensation; a legal commitment that expansion will happen only if it does not delay local surrounding areas complying with EU limits on air quality; and compensation for homes lost at full market value plus 25% available immediately. That would provide the framework within which to approach the challenges posed by an enlarged Heathrow. Why is airport expansion in the south-east so important to other regions such as the north-east?”
“” It estimates that £70 billion to £80 billion of economic benefits would spread across the regions of the UK by 2050. I recognise the many concerns, both local and national, about an expanded Heathrow, particularly local air quality, noise and other community impacts, not to mention whether an expanded Heathrow is even possible in line with our climate change commitments. The Airports Commission also recognised those challenges and set out a package of measures to meet them. Let us remember that the commission did not simply give an unlimited green light to expanding Heathrow.”
“Indeed. The commission looked at that issue and its decision was unequivocal: a third runway at Heathrow presents the clearest case and the greatest strategic and economic benefits to the UK. That view was shared unanimously by its members. For the benefit of hon. Members, it is worth revisiting what some of those benefits are. The commission estimates that by 2050, GDP would be boosted by £129 billion; 78,000 new jobs would be created; productivity would be boosted by £69 billion; and 12 new long-haul routes would be available to UK passengers with 16 million extra long-haul seats. Those benefits far outweigh those that would be provided by an expanded Gatwick. Perhaps most important, the commission said that an expanded Heathrow would “provide a stimulus to economic growth throughout the UK .”
“My hon. Friend makes a very important point, but we must always look at this in both directions. It is not about where we would be happy to go via if we want to go somewhere, but where people are happy to come via if they want to come and do business where we are. That is increasingly important.”
“Of course, it was welcome that the leader of the Scottish Labour party, Kezia Dugdale, pledged while visiting Newcastle that a Labour Scottish Government would not cut APD north of the border, acknowledging the risk of such a move to north-east airports and businesses. The implications for airports such as Newcastle and others, including Bristol, Manchester and Birmingham, should not be underestimated. We have long made that clear; we have done so since the Smith Commission’s proposals were published.”
“Most importantly, I hope that the Minister will set out clearly when we can expect a decision once and for all, and provide a guarantee that we will see no more dither and delay from this Prime Minister. The other major concern for regional airports in the UK at the moment is the devolution of APD to Scotland and Wales. As a result of the Smith Commission proposals, APD is being devolved to Scotland through the Scotland Bill, and the Government are now considering the case for doing the same in Wales, as part of the St David’s Day agreement signed last year. We know already that the Scottish National party programme for government includes a pledge to cut APD in Scotland from 2018, initially by 50% if the SNP wins power this year, with a view to replacing APD with a “more competitive regime” in the long term.”
“As the Airports Commission found, a crowded Heathrow has led to a decline in the number of domestic services, from 18 in 1990 to just seven at present, but it estimates that that could bounce back to 16, and an additional 1 million passengers a year, if a third runway is built. By contrast, the commission says that if we maintain the status quo at Heathrow, domestic passengers using the airport could fall by a staggering 2.5 million. In that case, I hope that the Minister will acknowledge the vital links between regions such as mine and Heathrow and the economic benefits that they provide for regional economies. I hope that he can reassure hon. Members today that the impact on regional economies is playing a key role in the weighing up of the decision.”
“As the Transport Secretary himself told the British Air Transport Association last week, we must keep “beating the drum for the regions in this debate.” He also said: “One of the most persuasive arguments for new capacity is the links it will provide to the north, the south west, Wales, Scotland and Northern Ireland. Opponents have tried to suggest that a new runway would somehow undermine our domestic network. In fact the reverse is true.” I could not agree more. However, these vital connections between the regions and Heathrow, which, let us be clear, is where domestic links are most valuable, are at risk.”
“I thank my hon. Friend for that intervention. I will come on to that issue shortly. To go back to the airport expansion issue, Newcastle currently has a six or seven times daily service in and out of Heathrow. It is used by 500,000 passengers a year, including many of my constituents, as well as residents and businesses from across the north-east, 50% of whom use the domestic service into Heathrow to connect to hundreds of destinations worldwide—an opportunity that no other UK airport provides for my constituents, or passengers from any other region, for that matter.”
“A number of options are being mooted and discussed as part of the solution. What I want to see from the Government is some certainty about what they will actually do to ensure that regional airports are not disadvantaged by some of these changes. All options need to be considered and taken seriously. Indeed, analysis by Her Majesty’s Revenue and Customs of the impact of devolving APD to Scotland found that Newcastle would be the most acutely affected, at least immediately, with an initial 10% reduction in passenger numbers. That is the Government’s own analysis. In particular, HMRC’s review forecast that the savings to medium and long-haul passengers from reduced APD in Scotland would outweigh the cost of travelling further.”
“My hon. Friend makes a very important point, and I can see that the Minister is interested. He should give some consideration to the impact that that practice has on domestic passengers and regional economies.”
“Interestingly, the Prime Minister seemed to recognise the issue during the general election campaign. He told regional newspapers: “We are not going to accept a situation where there’s unfair tax competition...We will do what’s necessary to make sure that England’s regional airports can succeed.” However, there has been near total silence on this issue ever since and there is a considerable amount of understandable concern that that was simply a lot of hot air.”
“I really hope that the Minister will be able to provide that certainty for them today.”
“The Government must make a decision in the national interest, but it should be a decision that respects our international commitments and the concerns of local communities. The Airports Commission has set out a plan that can achieve those twin aims, but the Government do not seem to accept it. It is time to end the dither, delay and prevarication that has prevailed for far too long under this Prime Minister and Chancellor because it is not just London and the south-east but Newcastle, the north-east and many other regions will lose out most. Heathrow is, after all, not a London airport; it is the national hub. Airports across the country are looking for answers and long-term certainty from the Government, whether it is on airport capacity or the tax regime for aviation in the UK.”
“I understand that very large airports, with airlines queuing up to use their runways, are easily able to pass on those costs on to airline operators. However, it is much less easy for regional airports to do so, and the impact of the shift in costs is therefore having a disproportionately adverse effect on them. Regional airports are understandably extremely concerned about proposals that they should bear the costs of Border Force operating on their sites. Given that the agency is responsible for national security, I would have thought that responsibility lay squarely with the Government. The decision on airport capacity and expansion has been kicked into the long grass far too many times, even after a £20 million independent commission made the decision on the Government’s behalf, as it was asked to do.”
“The Airport Operators Association has made clear its very strong preference for any future reduction in APD in Scotland to be “matched, immediately, by a cut everywhere” so that no part of the UK is “disadvantaged in any way.” It is clear that the continued uncertainty on the issue is very damaging, and it is already having an impact on regional airports when it comes to airlines planning future routes and commitments. It is not good enough to wait and see what happens in Scotland. Action and certainty are required for England’s regional airports now. A further concern I want to raise briefly this morning is the effect of regulatory charges—including, for example, the cost of a 24-hour police presence and all the security borne by airports—on regional airports such as Newcastle International.”
“When will the Government publish a response to the discussion paper that they published last summer? Are all three options still on the table or have some been ruled out? Most importantly, will the Minister tell airports such as Newcastle, Bristol and others how they will be supported by the Government when APD rates are devolved to Scotland and, potentially, to Wales? At the very least, will he tell us when airports can expect to hear about the plans?”
“If APD was left as it is, and the Government provided financial support instead, how would they ensure that adequate aid reached airports acutely affected by lower APD rates across the border in Scotland or Wales? There are stringent EU guidelines on state aid support, particularly in the aviation sector, and we have previously heard the Government promise compensation to sectors impacted by one policy or another, but they have often under-delivered. How will this be any different? Will airports such as Newcastle be left to plug the gap? Those and many more questions remain regarding the Government’s proposals, yet, six months on from the publication of the paper, there is near total silence from Ministers. I hope that the Minister will break that silence and provide us with some much-needed detail.”