Mr Paul Kohler
MP for Wimbledon · Liberal Democrat · United Kingdom
“Back in March, the right hon. Member for Makerfield (Andy Burnham) travelled to Belfast to address the Alliance party conference. In his speech, he warned that “it is too easy for the powers-that-be to write their own rules and cover up”.”
“Despite the unholy alliance between the Minister and Members on the Tory Front Bench, this issue is clearly a product of Brexit. I visited Dover with the Home Affairs Committee last week.”
“Will the Secretary of State confirm whether he will support the Lib Dem amendment to the Bill requiring that any decision to block disclosure on national security grounds is referred to the Intelligence and Security Committee to ensure proper parliamentary scrutiny?”
“The 2026-27 main estimate for the Northern Ireland Office asks the House to approve spending plans for this politically sensitive region of the United Kingdom. In cash terms, the 2026-27 block grant has barely increased from 2025-26 levels.”
“That figure sounds impressive, but it does not begin to address the operational drain that legacy demands place on day-to-day policing. The Chief Constable, Jon Boutcher, has warned that without the PSNI being funded to service the demands of what is planned to become the Legacy Commission, the entire project will fail, yet when he petiti…”
“A Federation of Small Businesses survey found that more than half of businesses trading between Great Britain and Northern Ireland are experiencing real difficulties, with more than a third of UK-wide respondents who moved goods between Great Britain and Northern Ireland having stopped doing so entirely.”
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“Everything suggests that given all those dynamics, without some form of revenue certainty you will not get that investment in the first-of-a-kind plants that we need to prove out the technology and get that initial set of volumes on a really aggressive timeline for 2030. As airlines, on balance, we want the system to be competitive. We expect there to be imports as well as domestic production, but we think that without that UK 2G supply kick-started by the RCM, we will struggle and then we risk the buy-out. That is why we support it. On top of that, if it goes right, you get a UK industry better for your security, and jobs domiciled in the UK. It is a win-win, notwithstanding that as airlines, that is not necessarily our primary goal, but it is a huge benefit, so why not support it?”
“Ultimately, UK SAF projects are competing for investment against other renewable projects across the UK economy that have similar types of support—CFDs for energy and hydrogen and other types of things. In some way it is levelling the playing field a little for SAF compared with other forms. I am here representing airlines; I am not representing producers. We want and we need SAF, and we want it as cost effectively as possible. We have seen all the evidence, given the nature of our mandate, its design, the global market and the work of Phil New that Gaynor referenced, which specifically asked that question: you have a mandate; why do you need an RCM?”
“Underlying all of this, the SAF mandate creates a market for greenhouse gas certificates, and the price of those certificates will be variable. It is very much built on a preceding policy—the renewable transport fuel obligation for road transport. That was just a demand mechanism without any accompanying equivalent to this revenue certainty mechanism. We import 85% of our road fuels, and we are not doing a very good job, I must say, given the opportunity, at preserving those early movers of projects that were built in the early days. Getting project funding is challenging, and it is not made easier by the fact that we have some early movers that are not managing to keep their renewable fuel projects going. I am talking about the bioethanol producers. Rob Griggs: I agree with what Gaynor says.”
“In the UK, we now have many precedents of other large-scale projects that are driven by environmental requirements, from renewable electricity generation to carbon capture and storage. Those various different projects are all supported by some sort of equivalent to the contracts that will be let under this revenue certainty mechanism, whether it is a contract for difference for electricity or whatever. It is par for the course. We are not asking for this just because everyone else gets it so we should get it too. There is a competition for capital, among other things. If there are supported projects in terms of revenue stability, it will be easier for the capital to flow to those projects. This is a new mechanism. We are seeking new types of SAF production pathways. It is incredibly complex, and it is necessary.”
“Q Mr Greenwood has made a compelling critique of the basics—“We have a mandate; why do we need the RCM? There might be unintended consequences.” I know you disagree with him, but I would like to hear why you disagree with him. Gaynor Hartnell: These projects are first of a kind, pretty much. This waste-based stuff is not being produced at scale anywhere in the world yet. It is very challenging to build one of these projects. There are numerous risks. You have Philip New coming later to give evidence; he has written a report on that, so you could ask him what those risks are. This addresses the showstopper risk if you like, which is the revenue certainty that a SAF producer can rely on when going to a bank and asking to borrow the millions or billions of pounds that it costs to build one of these projects.”
“Q And issues such as tankering? Rob Griggs: We think it is probably too early to say. We need to keep an eye on that and whether there are unintended consequences of the way that this is set up. It is one to monitor.”
“Q Mr Counsell, I would like to quiz you on your first point. Given the premium on SAF, the mandate is going to cost far more than the RCM? Jonathon Counsell: Yes.”
“The EU ETS first established that the key principle is that money is recycled to help decarbonisation of those sectors that fund it. It is not taxpayers’ money. Aviation puts £500 million into the UK emissions trading scheme. That money is supposed to come back to support the decarbonisation of aviation. None of it does. All we are saying is, is that not a perfect opportunity to use some of that aviation money to support the costs that are coming back to us through the levy? Then we would not be paying twice. Instead, we would be paying for the levy, but through the UK emissions trading scheme.”
“Q The RCM is all about increasing the ability to produce, which will surely bring down the market price. Is not the RCM, in fact, an investment to cut your costs in the long run? Jonathon Counsell: We support the RCM: it is a critical mechanism and you will not get 2G plants funded in this country without it. We spent the last five years talking to investors who said that the mandate is not enough. The mandate creates demand; it does not create investment. If you have a mandate on its own, all your SAF will be imported. The RCM unlocks the investment to get the plants built—so it is absolutely an investment, but the issue for airlines is that we are paying for the SAF and also paying for our carbon emissions. If we then pay for the derisking of the infrastructure, we are double-paying.”
“The primary role we see for it is in getting production up so that supply can meet demand in the short run. Ultimately, though, we will have higher costs because of SAF, especially as eSAF and power-to-liquid comes in, and those costs will have to be passed through. We are doing a huge amount to try to be as efficient as we possibly can; that is where the investments in aircraft and how we operate come in. As they say, the best energy is the energy you do not use, and in that way we are trying to manage our costs in the same way we have for the past 30 years, but I completely agree that we have to be wary of adding on to the costs we are already paying in the name of sustainability, both right now and in terms of meeting the mandates.”
“Given the economic value it returns and the Government’s growth agenda, we believe that creating a SAF industry also creates jobs and a lot of economic prosperity. The Sustainable Aviation report in 2023 estimated that the UK SAF industry would create about 60,000 new jobs by 2050 and about £10 billion gross value added by the same time. There is a benefit here for the UK economy as a whole purely in terms of the SAF industry, and using some of the taxes we currently pay to fund the RCM would be very helpful. Lahiru Ranasinghe: I do not have much to add to what has already been said, but the cost of SAF means that the cost of fuel will go up in the long run, even with the RCM. In our minds, the RCM is something that unlocks production, as opposed to something that brings the cost down.”
“We put 20 million tonnes of municipal solid waste into landfill; we even ship 5 million tonnes of it to Europe. That is energy. We should be using it to make SAF. Those advantages can overcome the energy disadvantage in the short term. Hopefully we will sort out that energy disadvantage, but as we scale up those plants that SAF price should come down. It is an investment, but we do not want to double-pay for it. Luke Ervine: Just to add and clarify, I think Luke Taylor asked a question earlier about ways to pay for the SAF mandate. We have always been very clear about paying twice through things such as the ETS scheme. We would love to see those revenues used to reinvest in the decarbonisation of the aviation industry.”
“Q To your point on the RCM, the money you put into the RCM will bring down your overall costs, because the premium on SAF will go down, will it not? Jonathon Counsell: Absolutely—we hope that eventually, as you scale up SAF supply, the cost will come down. Will it ever come down to jet fuel levels? I do not think it will, because of the factor cost element. I agree with Paul Greenwood, who said earlier that one of the disadvantages we have in this country is high energy costs. We are doing SAF contracts with SAF suppliers in the US, where their energy costs are one third of those in this country, so we are at a disadvantage. On 2G SAF, however, I think we have some real advantages: we have some sites, we have expertise and we have feedstock, both waste biomass and municipal solid waste.”
“We would not have those costs associated with our process. Integration of our direct air capture with our power-to-liquid solution in three to four years’ time would be quite a mature technology, and definitely scalable within the UK.”
“That is not what we want to do as a petroleum company; we want to put that carbon dioxide into a liquid fuel, and then it is net zero. You have carbon dioxide and water coming out of the exhaust—whether that is a turbine or internal combustion engine. If you capture the carbon dioxide again with the direct air capture, you are then net zero. When you integrate that direct air capture with our process, the cost of direct air capture is probably reduced by 80%, because we have an exothermic reaction going on, and the majority of the cost in direct air capture is in the de-absorption of carbon dioxide. Once you have absorbed it from the air, you have to heat up the catalyst again—or the material that has absorbed it—to get the carbon dioxide out again, and we have an exothermic reaction.”
“Q Using carbon dioxide to produce SAF is a wonderfully seductive and brilliant solution. You are addressing the regulatory obstacles, but what are the technical obstacles? Doug McKiernan: To be perfectly transparent with everybody, with carbon dioxide at the moment I think the direct air capture, compared with where we are, is a bit of an Achilles heel. It is probably around two to four years behind in its scale-up, in terms of being able to keep pace with our scale-up, but actually there is plenty of biogenic carbon dioxide around for large-scale commercial plants here in the UK, which could be a stepping stone to the direct air capture. A lot of the work with direct air capture at the moment talks about the cost of it; you can sequestrate the carbon dioxide in the ground.”
“Q Have you overcome the technical problems? Once you have the CO 2 , is the technical process now scalable, or are there still many issues involved in it? Doug McKiernan: Our technology at the moment has to be scalable. When I go to the Jet A-1 ASTM committee at the end of the year, it has to be scalable. That is part of getting of getting the certification. We have to have a scalable process as well as a quality of fuel—so yes, we are there.”
“Q Some of the evidence we have received from the contributors to the consultation expressed concern over the levy calculation. Under clause 6, it could be based on historic market share. Do you share those concerns about complications in the levy calculation? Should it be a simple levy placed on sales going forward, rather than on historic market share? Ruben van Grinsven: Again, that is hard to judge because we do not have the full details of how this is going to be done. I agree that it is a very thin-margin business, so we have to make sure that the levy is distributed properly, and that we do not give certain people a disadvantage or advantage just based on calculation methods. We need to design it very carefully so we do not disturb the market too much.”
“I am not close enough to comment on whether the levy poses a particular challenge there, but when the Government get to the stage of consultation on the detailed design of the mechanism and are working with the industry, it will be important to design it in a way that avoids that wherever possible.”
“We can see a case in future to be more ambitious with the UK mandate. I think the Government said that they want to keep that actively under review, which we support. On the question of tankering, it happens to a limited extent today. We do not fly the aircraft, but our understanding, from when we last looked at it several years ago, is that on short-haul aircraft in particular, where there is a very rapid turnaround and you do not necessarily want to take time to fill up the aircraft at the other end of the route, the CO 2 penalty was not huge in terms of the industry overall.”
“Q First, given the obvious international aspect of aviation, does it make sense for the UK mandate and the EU mandate to diverge, or would it make more sense if they were the same? Secondly, we heard from one witness that the levy would encourage tankering, with air operators filling up in other locations. Does that happen now, and is it an issue that you can see being made worse by the levy? Matt Gorman: On the first question, I touched earlier on the fact that the EU and the UK have taken different trajectories, certainly into the longer term. I will be a little bit careful in what I say, because we are just finalising our thinking on what we submit to the Government, but increasing ambition with SAF will be important in the UK as we build confidence in production and scale-up of the technology.”
“Q May I go back to my first question? I hear what you say about being more ambitious, as the EU is towards the end of the mandate or as it progresses, but do you see any problems with the mandates being out of kilter? Or is that not an issue? Matt Gorman: If we start with the mandates out to 2030, we at Heathrow do not see a particular challenge in the UK’s adoption of a more ambitious mandate. We very actively supported the 10% mandate for the UK. As I say, it is really important that we start to get SAF flowing and to produce it in the UK, with the support of the Bill. In the longer term, through the work we are doing and our submissions to Government, I expect us to say a bit more about the long-term ambition for the mandate in the UK, but we have not quite finalised that.”
“That is why we are funding the fuel suppliers, at the top of the chain here, so that the costs are spread as this goes lower down the chain and eventually to the passenger.”
“Q I have been looking at some of the written evidence we have received in addition to the testimonies from the witnesses. I understand why clause 6 is widely drawn, but do you recognise that the levy being calculated in too complex a way would produce uncertainty, a lack of transparency, and externalities or transaction costs that we do not need? Mike Kane: I think clause 6 gives us flexibility. That is what is key in letting the contract. We have made some principle statements here. This is industry-funded; we do not think the taxpayer should pay for the decarbonisation of aviation. We know that at the moment it is a small amount of what transport emits nationally, but because it is one of the harder-to-decarbonise areas, we know that the graph will go up over time.”
“As we go to the strike price and the levy, we will continue to work with industry to make sure we get that right. Somebody described it earlier—I think it was Mark again—as being like a seesaw. It will go up, it will go down; but by letting the contracts or drawing them in, we can keep that balance in equilibrium, as far as humanly possible. That is the quality of this. While that is not the answer you might want to hear about the end piece, there will be scrutiny of the Secretary of State and of this, and of the legislation, and that will be covered by the Competition and Markets Authority. There will be many levels of scrutiny of how well Government are delivering this.”
“Q I do not know whether you have seen it, but Valero makes the point in its written submission that if the way that you calculate the levy is too complex, and if you base it on historical market data rather than current data, then with just a standard levy, that will produce problems, whereby new entrants will not be subject to the levy. We have to be sensible about how we calculate the levy. That is all I am suggesting. Do you recognise that as an issue? Mike Kane: The first thing I would say in response to your question, Paul, is that this is a very technical, short Bill, but there are huge challenges ahead. I want to compliment my officials, who have worked extraordinarily hard to get to this point, and also industry who have worked with us to get to this point.”
“It is vital, however, that the new organisation works closely with the communities affected by noise and air pollution—as has been said, there will be losers as well as winners—and that local communities feel that their voice is being heard when changes take place. We understand that London will be the first area that the UKADS considers. Can the Minister clarify the timeline for the creation of the new service and when we can expect the work on the modernisation of London’s airspace to commence? Can he give any indication of how long the Department envisages it will take for the UKADS to publish and consult on its draft proposals? Finally, will the Minister set out what steps the Government are taking to ensure that UKADS works closely with the public, so that the communities affected by the changes are and feel properly consulted?”
“It is a pleasure to serve under your chairship, Sir Jeremy. We welcome steps to better co-ordinate the fractured and complex system of managing airspace. It is important to bring it into the 21st century by delivering flight paths that cut emissions and ensure that journeys can be quicker, quieter and cleaner. The creation of a single guiding mind to co-ordinate and sponsor future airspace changes is a positive step and something that my party warmly welcomes. We recognise that without modernisation, not only will there be unnecessary capacity constraints, but outdated flight paths will constrict innovation and stand in the way of future advances, including essential low and zero-carbon developments in the sector.”
“I sympathise with the Minister’s frustration at the Tories’ brass neck. There is clearly a crisis in the criminal justice system, and it is clearly of their making. However, rather than undermining the jury system, we need to invest in our courts. Does the Minister agree that this is all about priorities? Is she going to use her limited budget to build more prisons and simply produce more prisoners, or use that limited money to invest in the criminal justice system and restorative justice?”
“Without proper assessment and oversight, we risk sleepwalking into a situation where routes are cut, service levels fall, and SEND pupils are left without reliable transport. That would be an unforgivable failure of not just policy, but basic fairness. Including a requirement to review the impact does not bind the Government’s hands; it simply asks them to look at the evidence, consider the consequences of their actions, and take responsible steps to mitigate harm where needed. We must protect these services for their users and uphold the principle that no one should be left behind due to financial pressures beyond their control. I urge the Government to reconsider and not shy away from scrutiny. They should own their decisions and be prepared to measure their impact. That is what responsible government demands.”
“Scrapping the review removes transparency, accountability and the Government’s responsibility to understand how their decisions impact real lives. The same principle applies to subsection (6), which calls for an assessment of the impact of changes to national insurance on SEND transport. Transport for children and young people with special educational needs and disabilities is not a side issue; it is central to an inclusive, accessible education system. Without that form of transport, many children cannot get to school. Increasing employer’s NI contributions risks undermining the viability of the services, as the hon. Member for Broadland and Fakenham made clear last week. The operators who run them are under increasing financial pressure.”
“They are essential for the young, for older people, for households without a car, and for those on the lowest incomes. The Government’s decision to scrap the £2 fare cap is not just wrong, but an outrage. It is a direct hit to the most vulnerable. The NAO report revealed that the lowest-income households—those in the bottom 20%—take more bus journeys on average than any other income group, at 42 journeys per household per year. Those are essential journeys to work, school, the shops or the doctor. Removing the fare cap would mean those people—the poorest in our society—paying more to do the basics of daily life. Subsection (5) rightly sought to introduce a review to assess the impact of increasing the fare cap on people’s ability to access socially necessary routes.”
“By inserting subsections (5) and (6), the House of Lords sought to focus attention on the Government’s commissions—namely, the end of the £2 fare cap, and the disastrous effect of hiking employer’s NI costs on the provision of special educational needs and disabilities bus transport. The Government’s decision to table an amendment removing those subsections is plainly a mistake, one that threatens to undo the constructive and necessary work undertaken in the Lords. The provisions were added to ensure that Ministers are held accountable for the consequences of their decisions—specifically, the rise in national insurance contributions and the short-sighted decision to increase the cap on bus fares. As the National Audit Office made clear in its report published last Friday, bus services are lifelines, not luxuries.”
“They have given a bit of money, and now it will be up to local authorities. The Minister even quoted other Tory lines about how there is no “magic money tree”, and I agree—there is not. So we need growth. We do not get growth by wishing on a star, taxing jobs by increasing employer’s national insurance contributions, or tying ourselves in knots with red lines over Europe rather than meaningfully re-engaging with the EU customs union. That is the way to grow the economy; that is the way we pay for these things. The Government cannot talk about growth, do nothing about it, and say to local authorities, “We have given you almost a billion pounds, and you can now go and sort out buses,” because local authorities do not have the finances. I am straying from the Bill. I have thus far referenced the omissions from the Bill, such as money.”
“Clause 14 is so important, because it is about socially necessary routes—those that are critical to the community. It explicitly includes employment and, as the Minister conceded last week, also catches things such as hospital appointments, GP appointments and education. Throughout the Committee stage, the Minister has hidden behind localism. Now, I am a Liberal, so subsidiarity is part of my DNA; I believe in devolving power, but national Government must not wash their hands of their responsibilities. It is reminiscent of the old Conservative trick from the Thatcher era, of Government distancing themselves from their responsibilities. Funding is crucial, but as we heard in the debate last week on amendment 54, the Minister says it is not for Government to decide what to do with it.”
“New clause 37 is sensible and constructive. It would ensure that when enhanced partnership schemes are amended, improved integration across modes of public transport is explicitly recognised as a legitimate and desirable reason for doing so. We have seen time and again, both here in the UK and internationally, that when public transport is properly integrated, it works. It becomes more convenient, reliable and attractive to passengers. People choose to use it and when that happens, buses flourish. Whether it is better co-ordination between bus and rail timetables, joined-up ticketing or clear and consistent information across modes, the benefits of integration are obvious. Without a clear statutory basis for prioritising integration, too often such opportunities are missed.”
“Accessibility cannot be an afterthought; it must be embedded from the outset and considered at every stage of decision making. These welcome measures help to support that.”
“Member for South West Devon, such a scheme may prove to be vital in ensuring that disabled and other vulnerable users feel comfortable and confident in using the bus. Subsection (3) strengthens the consultation process and ensures that disabled users or organisations representing them are consulted before any EP scheme is made. That is not just good practice; it is essential if we are to build a transport system that works for everyone. Subsection (4) mirrors that requirement when enhanced partnership schemes are varied, and guarantees that the accessibility is not forgotten as schemes evolve. Authorities must once again consider whether changes enable disabled people to travel independently, safely, and in comfort. These are considered but welcome changes.”
“The clause, added during scrutiny in the Lords, is a welcome and valuable improvement to the Bill, but we would like to know what consultation was held with disabled groups before it was drafted. Although the changes it makes might seem modest on paper, they have the potential to make a significant difference in improving accessibility across our bus network. Subsection (2) allows enhanced partnership schemes to specify requirements to ensure that disabled people can travel independently, safely, and in reasonable comfort on local bus services. The inclusion to allow the specification of a taxi guarantee scheme is also welcome. Although we share some of the concerns of the hon.”
“If we want a bus system that works for everyone, we must ensure that local authorities do not just create plans, but deliver on them, transparently and consistently. For that reason, we support the clause standing part of the Bill, and we urge the Government to adopt new clause 23.”
“Under the Conservatives, the Access for All programme was left to wither and die on the vine. Unless we actually do something more practical, as we are suggesting, that is what will happen again. I agree that none, or not much, of the Bill will work without adequate funding—that is a given—but we have already made that point, and the new clause would give the oxygen of publicity to what is happening. We think that is important. We do not think that new clause 23 would impose a significant new burden. It would simply require local transport authorities to produce a short annual update, setting out how they are progressing against the goals in their accessibility plan, to allow for regular scrutiny, course correction where needed and, above all, accountability.”
“However, if we are serious about delivering meaningful progress, we must go further. That is why we have tabled new clause 23, to build on the work started in clause 21 by introducing a requirement for annual reporting on accessibility progress. The existing clause requires the accessibility plan to be reviewed only every three years. We believe that is too long; three years is a long time in which to do nothing. I draw Members’ attention to subsection (4) of our new clause 23, which lists practical things that the report would have to report on to draw attention to the public, the Government and voters exactly where there are shortfalls in, problems with and obstacles to addressing the need. We need to go further than simply having the requirement.”
“In answer to the hon. Member for Broadland and Fakenham, our new clause 23 addresses the weaknesses in the existing clause 21. According to research by the National Centre for Accessible Transport, 90% of disabled bus users report facing barriers to using the bus network. Those include space constraints, poorly designed bus stops, the lack of step-free access when boarding or alighting, and the continuing absence of induction loops. Buses are not a luxury for many disabled people; they are a vital connection to work, services, friends and family. Putting accessibility front and centre is not optional; it is essential. The clause is therefore a step in the right direction. It rightly requires authorities to consider how to make bus services more accessible.”
“(3) When determining what constitutes a small operator, a local transport authority may consider— (a) the size of the operator’s fleet, (b) the number of employees employed by the operator, and (c) the operator’s annual turnover or other financial capacity.” This amendment would enable local transport authorities to prioritise small transport operators when allocating grants.”
“I beg to move amendment 56, in clause 23, page 18, line 42, at end insert— “154B Consideration of operator size in grant allocation (1) When exercising powers under section 154A, a local transport authority in England may have regard to the size of the operator when determining the amount of a grant and the conditions which may be attached to it. (2) In particular, local transport authorities may— (a) give priority to small operators for the purposes of ensuring the sustainability and diversity of local transport services, (b) adopt measures to protect small operators from disproportionate financial burdens or competition, and (c) take into account the financial and operational capacity of small operators to meet service demands.”
“By requiring authorities to take those smaller operators’ circumstances into account and, where appropriate, prioritise them in their grant making, we would help to protect local choice, preserve vital routes and foster healthy competition in the sector. In short, this is a modest but meaningful measure to ensure that smaller operators are not squeezed out, and that communities continue to benefit from diverse, responsive and locally rooted bus services. We therefore support amendment 56 and the clause standing part of the Bill.”
“We welcome the powers in clause 23, which enables local transport authorities to design and deliver grants directly to bus operators in their areas. It is a clear step in the right direction, placing real tools in the hands of local authorities, which know their communities best and are best placed to shape the services that their residents rely on. Amendment 56 builds on that principle. It would ensure that, when designing grant schemes, local authorities must consider the size of transport operators. Too often, smaller bus companies, many of them deeply embedded in the communities they serve, struggle to compete on an uneven playing field, especially when it comes to accessing capital for improvements or expansion. Our amendment recognises the vital role that those smaller operators play.”
“We remain of the view that without the amendment, the proposals will not give small bus companies the benefits that we are seeking to achieve. We are not convinced that that can be done without the explicit mention of small bus companies, as provided by the amendment.”
“I thank the hon. Gentleman for those comments on our amendment, but what is the point of including anything in proposed new subsection (2) then? Following his argument, nothing needs to be there.”
“324.] Here is the Minister’s chance to prove that the PM is a man of his word by accepting our amendment and showing that the Government do take sustained antisocial auditory disturbance seriously in the face of those who would—bizarrely—argue that it is not a nuisance.”