Lords Motions to approve EU Exit regulations on Aviation - Feb 25

That the draft Regulations laid before the House on 31 January be approved.

 

Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee A)

My Lords, the draft regulations will be made under the powers contained in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union without a deal. The instrument amends EU Regulation 300/2008 and its subsidiary legislation, which sets out the EU rules on aviation security standards that apply to Airports, air carriers and entities with access to secure areas at Airports. It governs matters such as the screening of passengers and cargo, access control and the vetting of staff.

 

The draft instrument corrects seven EU instruments which provide the framework for the security of passengers and cargo travelling by air. It also makes some minor changes to the Aviation Security Act 1982. Regulation 300/2008 establishes the framework for the aviation security framework regime in the European Union and sets out the common basic standards. It covers everything from passenger and cargo screening to staff recruitment and training and technical equipment specifications.

 

The draft instrument makes changes to the scope of the retained regulation to reflect that the UK will no longer be part of the EU after exit day. The retained regulation will apply to all flights departing from an airport in the UK. It will also retain provisions regarding inbound cargo, which I will come to later. The amendments limit its scope to the United Kingdom and remove provisions that will no longer apply to the United Kingdom. The amendments also replace legislative powers exercisable by the Commission or member states with regulation-making powers exercisable by the Secretary of State. In essence, the security screening requirements for all direct passenger flights to and from the UK will remain as they are today.

 

Regulation 272/2009 supplements the common basic standards by including additional provisions on aspects such as the methods of passenger and baggage screening permitted. It also sets the criteria for recognising the equivalence of security standards of third, non-EU countries when considering exemptions from these screening procedures for passengers transferring at EU Airports. The supplementary requirements relating to aspects such as the types of permissible screening method remain unchanged. References to Commission legislative procedures are replaced by reference to domestic legislative procedures, at the same time maintaining equivalent levels of scrutiny.

 

The provisions relating to the criteria for EU recognition of the equivalence of third-country security measures with EU aviation security standards are deleted. This is because the concept of “equivalence” with the baseline standards in the retained EU regulations does not make sense in a UK-only context where we apply additional measures over and above that baseline. In the future, the UK will retain the ability to make determinations in relation to One Stop Security through Secretary of State direction-making powers under the Aviation Security Act. This power would be exercised on the basis of an assessment of equivalence with the totality of UK aviation security standards.

 

The third EU regulation covered by this instrument is Regulation 1254/2009, which sets out the conditions under which alternative security standards to the common basic standards may be applied. It covers, for example, non-commercial flights, where the full passenger screening requirements may not be necessary. It allows that for such flights, the common basic standards contained in the main framework regulation may not be appropriate and alternative security measures may be more appropriate. Specifically, such flights might involve light aircraft with a maximum take-off weight of less than 15,000 kilograms; law enforcement flights; flights for medical services, emergency or rescue services; or certain private or business aircraft flights. The draft instrument makes no changes to these criteria.

 

Regulation 2015/1998 implements the common basic standards by prescribing more detailed requirements. This covers matters such as airport security and planning, aircraft search, passenger and baggage screening, cargo and mail security, training and recruitment, security of supplies available in airport shops and on board aircraft, and technical equipment standards. It makes detailed provision for the practical implementation of the measures contained in Regulation 300/2008. All of these aspects are essential to aviation security and this instrument retains the provisions, subject to the necessary amendments to remove specific EU references.

 

One key area of Regulation 2015/1998 is the EU inbound cargo regime. The EU operates a regime known as ACC3, which stands for “Air Cargo or Mail Carrier operating into the Union from a Third Country Airport”. In essence, this is a requirement for air carriers carrying cargo into the EU from a non-EU country to hold security designations. These designations confirm that they are screening cargo to the required standards and that a secure supply chain exists from the origin of the cargo to its point of entry into the EU. Responsibility for administering this system and granting designations is currently shared between member states. If the UK leaves the EU without a deal, it will no longer be part of this system, but it is of course critical that we maintain our inbound cargo security protections. The effect of this draft instrument is to retain the requirement that carriers must hold a security designation in order to fly cargo into the UK from third countries, and to apply this in a UK-only context. The new system of UK-ACC3 designations will be managed by the Civil Aviation Authority and the Department for Transport. In order to ensure a seamless transition on exit day, new UK designations will be issued to all carriers flying into the UK who currently hold EU designations. On expiry, carriers and screening entities will need to apply directly to the UK for new designations in the event of no deal. New designations will be granted using largely the same criteria as the existing system to minimise any additional burden on industry.

 

Regulation 2019/103 amends Regulation 2015/1998. The amendments that come into force before exit day have already been incorporated into Regulation 2015/1998 and will be retained and amended accordingly. The amendments that come into force after exit day do not form part of retained EU law. The only provision in Regulation 2019/103 that becomes part of retained EU law on exit day deals with the coming into force date of those later amendments. As the provision does not therefore serve any purpose, it is revoked by this draft instrument.

 

Regulation 72/2010 covers the requirements for Commission inspections of EU Airports and national authorities, which will no longer be applicable, so the draft instrument revokes this regulation. The draft instrument also amends the Aviation Security Act 1982 to remove references related to Commission inspections and inspectors.

 

Finally in this instrument, Decision C (2015) 8005 contains detailed provision relevant to and in parallel to the detailed provision in Regulation 2015/1998. This Commission decision is a restricted confidential instrument which contains sensitive information necessary to require Airports to carry out effective security procedures. Because of the security-sensitive nature of the provision it makes, for example, the types and quantities of material used for equipment testing, the decision is circulated only on a “need to know” basis and is not published.

 

Under the withdrawal Act, EU instruments not published before exit day are not required to be published on exit day and therefore cannot be meaningfully amended by this draft instrument. In order to retain the important aviation security rules contained in the decision, the requirements previously contained in it will instead be imposed by a direction. The direction will be given by the Secretary of State under powers contained in the Aviation Security Act 1982. The direction will form part of the single consolidated direction which sets out our domestic aviation security requirements that apply on top of EU legislation. The direction is regularly updated and a new version, incorporating the content of the decision, will be issued prior to EU exit. The content of the new direction will be disseminated to the same UK entities as those which currently see the EU decision.

 

The best outcome is for the UK to leave the EU with a deal, and delivering a deal negotiated with the EU remains the Government’s top priority. However, as a responsible Government, we must make all reasonable plans to prepare for a no-deal scenario. This draft instrument ensures that in the event of a no-deal exit from the EU, the legislative framework for aviation security will give the aviation industry clarity about the regulatory framework in which it would operate in a no-deal scenario. It will ensure that we can continue to keep passengers and our aviation infrastructure safe and secure. I beg to move.

My Lords, this SI deals with the legislative framework for aviation security in the UK covering everything from screening passengers to the rules governing access to Airports. This is a hugely important field and one where the UK has an extremely good reputation based on rigorous efficiency and the fact that we were one of the first countries to take up the option to introduce more stringent measures on security. Safety at our Airports is of course based on the pooling and swapping of key information—a process that has been built into the EU system which this SI dismantles—so I have some questions for the Minister.

 

On paragraph 6.4, the reassurance here on the use of the affirmative procedure is so gloriously vague that, to be honest, it is meaningless. We might have some affirmative SIs as a result of this, but on the other hand we might have some negative ones. We are given no proper measure of how that decision will be made. I would be grateful if the Minister could give us some information on how that judgment will be made. This is a fundamental area for our country.

 

Paragraph 6.6 of the Explanatory Memorandum refers to the revoking of Commission decision C(2015) 8005 and then states that the decision is so sensitive that we cannot be allowed to know what is in it. I have to say that this is a first for me. In my experience, I have never known the Government to revoke a secret power. Can the Minister give us some information as to what this might be about, even if she cannot give us the details? Certainly, can she explain why it is impossible to give us that information?

 

The question of airport inspections is important because we rely on the inspection of Airports in other countries in order to ensure that UK flights and UK citizens are safe. We use the information from those inspections to give warnings to UK citizens that they should not fly to certain Airports and to discourage airlines from doing so. This system relies on a free flow of information of a very sensitive nature. In future, we will inspect our own Airports. That produces two questions in my mind. First of all, how will we make sure we keep in step with the rest of the world on those inspections and the terms on which they take place? Secondly, how will we continue to share information with the remaining 27 EU countries? The sharing of the information is the absolutely crucial thing here.

 

I move now to the granting of operating licences, which is dealt with in paragraph 7.3(h) of the Explanatory Memorandum. What will be the impact of removing the provision for mutual recognition between member states in the case of the granting of operating licences?

 

Finally, the EU has a system of mutual recognition of approved air cargo carriers, whereby approval is given following inspection. Once we leave the EU, we will no longer benefit from this system and will have to set up our own system of inspection and designation. To start with, it is explained here, we will recognise all those carriers we currently recognise, but, obviously, things will move on pretty fast. New companies will enter the field, new information might come to light about existing carriers, and so on. We will have to erect a new system that will be expensive to the taxpayer, but also—this is an important point—to the companies seeking approval, because they will have to do it twice over. They will have to seek approval in the EU and in the UK. Once again, I am really concerned that we are isolating ourselves on a security issue. We are voluntarily forfeiting access to information via EU systems. Obviously, on the balance of probabilities, we will be less secure as a result.

My Lords, this is a very interesting SI, in particular the issue of confidentiality. This has come up again and again in not just the secondary but also the primary legislation. I know for a fact that people in the industries that I am in touch with say, “We have signed non-disclosure agreements, so we can’t tell you anything”, which is fine because it means they have to do what the Government say; they have no other information and no means of questioning it. More importantly, I need to ask the Minister how long these NDAs are going to go on for. As the noble Baroness said, once you have “security” in there and everything is confidential, getting that removed is almost impossible because there will always be 25 reasons for not doing it. That applies to NDAs and, even more important, to this legislation. We might just as well sit back and say, “Well, you didn’t tell us about it. Of course we trust you; you’re the best security in the world until something goes wrong”. Whether we believe that is a different matter, but there is nothing we can do about it.

 

My second point concerns Regulation 16, which the noble Baroness mentioned, about removing the power of the Civil Aviation Authority to grant operating licences to UK-registered air carriers. Why can the CAA not continue to do this? After all, it is a UK government body with the expertise—probably unlike the Secretary of State and his Ministers. I would go one step further and say we can still leave the EU and not have any input into the decision-making processes that go on—if that is what is going to happen—but is there any reason why we should not have the back-to-back arrangements with member states on operating licences with the CAA on mutual recognition? What is wrong with that, apart from the fact that Ministers do not want to do it? The Minister shakes her head, but technically it would make life a great deal easier. It seems to me that it should be looked at. I do not think any noble Lords will oppose this SI tonight—it is a bit late now—but this is something we ought to be thinking about and challenging. On many of these SIs coming up, including railway ones next week, the decision has been made but actually has nothing to do with the basic principle of leaving the EU. It is somebody’s interpretation of it to suit their own political ends or whatever. It is worth reflecting on that. In the meantime, I look forward to hearing the Minister’s response

First of all, I thank the Minister for her explanation of this SI. I struggled to understand it, and I suppose it must be of some comfort to know that at least one Member of your Lordships’ House—namely, the Minister—does understand it. Basically, as the Explanatory Memorandum says, EU law,

 

“sets out the baseline aviation security standards”,

 

applicable in the UK. As I understand it, the purpose of the SI in front of us is to ensure that,

 

“the legal framework has the same practical effect”,

 

after we have left the European Union. It says:

 

“Regulation 300/2008 and a number of the related EU instruments are being retained in United Kingdom law by virtue of the Withdrawal Act”.

 

 

Consequently, the instrument,

 

“keeps the effect of the regulatory framework the same in practice”.

 

I too have a number of questions, and I have to say they are suspiciously similar to those that the noble Baroness, Lady Randerson, has already asked. I too refer to paragraph 6.4 and raise the same point that the noble Baroness, Lady Randerson, raised. It says:

 

“In doing so, this instrument makes provision in relation to powers in Regulation 300/2008 (e.g. to amend detailed aviation security requirements) so as to confer these powers on the Secretary of State. In certain cases, the exercise of these powers is subject to the affirmative resolution procedure where it is considered that greater Parliamentary scrutiny is appropriate”.

 

 

So we are talking about something of some significance: detailed aviation security requirements. Like the noble Baroness, Lady Randerson, I would like to know how the decision will be made as to whether it should be the affirmative resolution procedure or the negative procedure. Perhaps the Minister could give some examples of amendments to detailed aviation security requirements that might be made under the terms of Regulation 300/2008 and that would go through the process and the procedure mentioned in paragraph 6.4, so that we can get some feel for the kinds of matters that we as Parliament might be being asked to agree to or accept.

 

I too refer to paragraph 6.6, which contains this reference to “Commission Decision C(2015) 8005”. I think we get some assistance earlier on in the document in finding out the purpose of this decision. It says in paragraph 2.4 that the contents,

 

“are not published, by virtue of provision in Article 18 of Regulation 300/2008”.

 

It then states:

 

“The Decision prescribes detailed requirements which correspond to the detailed requirements set out in Regulation 2015/1998 but which, if published, would compromise the efficacy of the security measures applied at Airports (e.g. the detailed specification of screening equipment or the minimum percentage of passengers required to undergo a particular form of screening)”.

 

 

As has already been said, we are told that the decision will therefore not be published on exit day in accordance with paragraph 1 of Schedule 5 to the withdrawal Act, and for this reason cannot be the subject of provision made under Section 8 of that Act.

I thank noble Lords for their consideration of these draft regulations. I agree that this is an important SI, dealing with vital security at our Airports and in our skies.

 

The noble Baroness, Lady Randerson, and the noble Lord, Lord Rosser, asked about future regulation-making powers, and I apologise that these were not specified in the EM. Currently, three legal processes are used for agreeing amendments to EU aviation security, and that depends on the level of the regulation. Essentially, we are following what has been done under the previous regulation.

 

In order to maintain equivalence between existing EU procedure and the proposed UK procedure for making future amendments, the statutory instrument provides the Secretary of State with powers to make amending regulations by affirmative resolution for amendments to provisions currently covered by Regulation 300/2008 and the overarching Regulations 272/2009 and 1254/2009, and by negative resolution for amendments to provisions currently covered by Regulation 2015/1998 and the amendments to that.

Does that mean that the Secretary State intends, through the amendments the noble Baroness has mentioned, that the regulations will stay in line with the European ones as they develop?

I am not able to give the noble Lord that reassurance as we are not sure how EU regulations will develop. However, we are of course committed to maintaining our high security record. As has been mentioned, we already have more stringent measures and that will continue.

 

On the more stringent measures and the Commission decision, the Aviation Security Act gives the Secretary of State powers to give directions to or serve notices on specified parties—for example, directly to air carriers or Airports—for the purpose of discharging his aviation security responsibilities. The single consolidated direction is a compilation of the various directions and, after the UK exits from the EU, the single consolidated direction will continue to refer to the retained EU legislation, supplemented already, as I have said, by the more stringent measures. This is essential to maintaining our existing aviation standards, which will be continually assessed and modified, where necessary, to reflect the current threat picture.

 

The single consolidated direction will also be used to set out the content of the Commission decision, and the content decision will continue not to be published. The information was not published before and will not be published in the future. I understand the noble Lord’s concerns about that but, obviously, if more details were out there on the specifics of what was needed for aviation security that would put us at risk—for example, the specifications of screening equipment, the volume of detection, the criteria for the random testing of airport supplies, details of the exact screening requirements such as what percentage of passengers are checked, and the green list for aviation security. There is no change in this.

I appreciate that there are security issues involved—I do not pretend otherwise and the Minister may think this unnecessary—but is it still not possible for the Secretary of the State to publish something at least saying what general areas the regulations or amendments he has made cover without being specific about what they said?

That would be a new development. As I say, the SI ensures that we continue what we have done previously. However, I will take back the noble Lord’s suggestion to consider whether in the future we could do that.

 

The noble Lord, Lord Rosser, also asked who will be inspecting the CAA, the Secretary of State and Airports after exit day. We will continue to maintain our high standards. We will be part of the ICAO and may have EU inspections for one-stop security purposes. This country has an excellent record of aviation security and will continue to have it after we leave the European Union.

 

The noble Lord, Lord Rosser, asked about derogation from standards. Some small Airports and demarcated areas within Airports already have some derogation. That is what we are carrying over. There are no plans to ask for additional derogations.

 

On civil aviation security equipment manufacturers, the noble Baroness, Lady Randerson, asked about standards. I point to the European Civil Aviation Conference which, despite its name, is a branch of the International Civil Aviation Organisation and is made up of 44 member states. We will continue to play an active role in ECAC after Brexit and that will include contributing to the development of improved standards on security equipment. ECAC also undertakes testing of aviation security equipment to certify that it meets the required standards. We will maintain that relationship. Any international manufacturer producing such equipment can submit it to ECAC for testing and certification and that is the standard we will continue to use. There should not therefore be any other barriers to UK manufacturers supplying EU Airports post EU exit.

 

On ACC3—this is an important part of the SI—I say to the noble Lord, Lord Berkeley, it is not our choice that we will no longer be part of this scheme. It is an impact of leaving the European Union without a deal. The scheme is open only to member states and. if we leave without a deal, we will no longer be a member state. This is not a policy choice that we are taking; it is an effect of us leaving if we leave without a deal. That is why we have had to bring in a new system.

 

We want to minimise disruption and additional burdens on industry while maintaining our standards. That is why we have the new UK ACC3 designation and that will be issued to all carriers and the supply chains which currently hold the EU designation. We have consulted carefully on this and, prior to leaving, the CAA will formally confirm the new UK ACC3 designations for carriers and that will be reflected in the UK ACC3 database. However, as the noble Baroness pointed out, this is a moving feast. There will be new cargo flights for existing designations and, when they are due for renewal, carriers in that instance will have to apply directly to the UK for the new ACC3 designation. In order to manage the new regime we will need to maintain a record of all granted designations. In a no deal scenario, we will lose access to the EU database that forms the backbone of the EU ACC3, comprising the approved carriers, the entities and the validators. We will need a new system and that is what we have set up. However, we will ensure that that continues to maintain our high security standards and minimises disruption.

 

In the current system, to which the noble Lord referred, the UK has a responsibility for designating certain destinations to form part of the EU system. That will also be removed and the EU will take on that role.

 

On compliance and inspection of Airports, as I mentioned earlier, the EU has said that it will recognise one-stop security and we expect some EU inspections in the future. However, domestic aviation security compliance is already managed by the CAA and will continue to be so after exit day.

 

The noble Baroness, Lady Randerson, raised the important issue of costs. As the basic aviation security requirements will not change, any costs to the industry will be minimal. There will be modest administrative costs to air carriers on expiry of their existing designations because of the change in the ACC3 system. We have aimed to minimise additional costs. The evidence required for both systems will remain the same, so carriers should be able to pay for a single independent validation report and submit it to both the UK and EU authorities. There is no direct charge to carriers applying for an EU ACC3 designation and the CAA will not impose a direct charge on that either. I agree with the noble Lord that it would be easier to stay with the same system but, as I say, it is a consequence of leaving with no deal.

 

On the question of the noble Lord, Lord Rosser, about how the current system on costs works, the current regulations allow member states to decide how to allocate the costs of aviation security, subject to the relevant rules of Community law. That means that member states do it differently. There are some that use central funding for it. In the UK currently we have the user-pays principle: the costs are borne by the airline and the Airports and ultimately passed on to the consumer. Industry meets those costs by virtue of the charging system under Section 11 of the Civil Aviation Act 1982, and that arrangement is expected to continue after we leave.

 

On the cost to government, another point raised by the noble Baroness, Lady Randerson, the CAA already has the expertise to assess applications for cargo security designations under what it does in the EU system and it is making appropriate contingency preparations to deliver continuity under that scheme. It has incurred a one-off cost in developing the new database to assist in administration. That cost is around £150,000 and will be funded out of the CAA EU exit programme contingency fund provided by the Department for Transport. There may also be a modest increase in CAA resources required to administer the system in the future. We expect that to be around two full-time posts a year.

 

I hope that I have answered the majority of the questions. If I have missed any I will follow up in writing. As I have said, delivering a negotiated deal remains our top priority. This SI makes it clear what the benefits of delivering a deal will be and what the implementation period will be. However, in the event of no deal, it is essential to ensure that a crucial part of the regulatory framework for civil aviation continues to work effectively after exit day and that passengers continue to benefit from the level of security we see today.

That the draft Regulations laid before the House on 28 January be approved.

My Lords, this draft instrument will be made using powers in the European Union (Withdrawal) Act 2018 and will be needed if the UK leaves the European Union in March without a deal. It amends single European sky legislation, the four basic regulations which provide the framework for EU air traffic management regulation, and the implementing regulations which set out the more detailed requirements.

 

The implementing regulations cover air traffic management interoperability: the manner in which the UK works with other states to deliver air navigation services; the organisation of airspace; the safety and oversight of air navigation services; new technology and how it is to be used; and a system of performance and economic regulation for air navigation services. The single European sky legislation supports the EU initiative to improve the efficiency of air navigation services while maintaining safety within the European air traffic management system. The delivery of air navigation services is vital to ensure that congested airspace can be used safely and efficiently. The services regulated by the single European sky legislation support air traffic growth by ensuring the safe separation of aircraft. If these services are not provided in an efficient way, it can cause considerable delays, with resultant costs and disruption to airlines and passengers.

 

This draft instrument will ensure that the effective regulation of air traffic management arrangements in the UK continues in the event of no deal. It addresses areas where retained EU law will no longer function effectively after leaving the EU. It does this by removing governance and oversight roles of EU bodies that cannot be performed by the UK after exit and assigning them instead to the Secretary of State or the Civil Aviation Authority, and by removing regulatory tools where there is already satisfactory UK legislation. Where possible, roles currently undertaken by the European Commission and EU bodies are being transferred to the Secretary of State or the Civil Aviation Authority, but where they relate to pan-European functions, including air navigation services delivered by more than one state, they are being removed.

 

The instrument includes arrangements to recognise EU-based certifications and authorisations existing immediately before exit day. For example, EU air navigation service providers operating in the UK that have certificates issued prior to exit day will continue to have their certificates recognised by the CAA, which will allow them to continue to provide services in some parts of UK airspace. These certifications and authorisations will be preserved for a maximum two-year period, subject to any earlier expiry or termination, which will provide continuity until another agreement is reached with the EU on these issues.

 

The single European sky legislation includes a regulatory framework for the development and deployment of new technology and ways of using it: the Single European Sky Air Traffic Management Research programme, or SESAR. In the event of no deal, the UK will not be able to participate in or legislate for SESAR governance arrangements. We are, however, retaining requirements for the deployment of new technology arising from SESAR for the UK’s air navigation service provider, NATS, and some UK Airports, to ensure that UK arrangements are modernised in line with those of the EU and that interoperability is retained.

 

The instrument also ensures that the UK can continue to comply with its international obligations, such as those set out under the Chicago convention, which governs international civil aviation. This is done by retaining regulations that currently dictate how we comply with the standards and recommended practices—SARPs—adopted by the International Civil Aviation Organization under that convention.

 

Again, the best outcome is for the UK to leave with a negotiated deal, and delivering that deal remains the Government’s top priority but, as a responsible Government, we must make all reasonable plans to prepare for a no-deal scenario. The instrument maintains the existing regulatory framework and technical requirements for air traffic management to ensure the continued provision of efficient, safe air navigation services and the effective regulation of the UK air traffic management system, as well as to maintain interoperability between the UK and the EU after the UK exits the EU. This instrument also ensures that in the event of a no-deal exit from the EU, the UK has effective regulatory arrangements for the UK’s air traffic management system and that the aviation industry—in particular, the CAA and NATS—has clarity about the regulatory framework which would be in place in that scenario. I beg to move.

My Lords, no SI better epitomises the efforts of the Government to force us into splendid isolation. Anyone who has studied history at any time will remember that 19th-century concept of British diplomacy—which got us precisely nowhere in the end.

 

Modern air traffic management is based on a complex network of international treaties, organisations, protocols and rules that has built up over many years in the interests of safety, efficiency and limiting the environmental impact of aviation. I welcome the fact that just for once, under the section in the Explanatory Memorandum on consultation, there is reference to a specific view of stakeholders. It might have been a limited consultation, but we have a report that they want continuity of the regulatory framework—well, of course. Despite this, this SI is full of efforts to shoehorn the necessary changes into the existing approach. However much there are attempts to continue as normal, there will be significant changes.

 

There are several issues I want to raise. First, paragraph 7.3 of the Explanatory Memorandum states that some powers now held by the EU will come to the Secretary of State and some to the CAA, but air navigation services delivered by more than one state are simply being removed by this SI. Surely this will lead to a dangerous lack of co-ordination. Will the Minister explain what will happen in that yawning gap once the EU powers are removed?

 

Paragraph 7.9 states:

 

“The UK will remain a contracting State of Eurocontrol”.

 

 

Eurocontrol is an intergovernmental organisation regulated by the EU. I realise that membership of this organisation is essential for the interoperability of air navigation systems, but I was quite surprised to see that we are going to remain a member, given that the EU has powers over it. Has the Minister explained this to her colleagues who are in favour of leaving the EU? The compromise appears to be that we will accept the rules of Eurocontrol, but will be unable to participate in its governance. That seems a pretty poor deal, but I appreciate that we have no choice but to remain a member.

 

I have a question on functional airspace blocks, or FABs. They do not follow state boundaries, and we share an FAB with Ireland. My recollection is that a large proportion of Atlantic air traffic passes through that FAB. After Brexit, we will have no legal basis to participate in the FAB and in future, any involvement —so the Explanatory Memorandum states—will be discretionary. However, there is no word in the EM about what the Government would like to do. Is it their intention to try to remain a member of the joint functional airspace block with Ireland, and will leaving it be something they do only unwillingly, if forced? There is nothing in the Explanatory Memorandum about Ireland if we cease to participate. We are looking here at the splintering of the co-ordination on airspace functioning, and I believe that it would have a very serious impact on Ireland if we ceased to participate.

Again, I thank the Minister for explaining the purpose of this SI. As before, some of the points that I wanted to raise were touched on by the noble Baroness, Lady Randerson.

 

The first relates to paragraph 7.3 of the Explanatory Memorandum, to which the noble Baroness referred—particularly the reference to,

 

“pan-European functions including ANS delivered by more than one State … being removed”.

 

I, too, would like to know the actual impact of that. Does it compromise safety in any way, and what does it mean in practical terms from our point of view as a nation?

 

Paragraph 7.9 refers to Eurocontrol, which it says is,

 

“an intergovernmental organisation that provides some ANS for its member States”.

 

It says:

 

“It is not an EU body but it has been designated as the”,

 

 

single European sky,

 

“Network Manager and is regulated by the EU where it provides services to EU Member States. The UK will remain a contracting State of Eurocontrol after it leaves the EU and will still be able to receive its services as a contracting party to the Eurocontrol Convention”.

 

Can the Minister explain the exact impact of that on us, bearing in mind that it is designated as the single European sky network manager and we will no longer be part of the EU? What does it mean for us as far as regulation is concerned? Presumably it does not leave everything exactly the same as it is now, but at the moment I am struggling to identify precisely what the change might be. Any assistance that the Minister can give on that will be appreciated.

 

Paragraph 7.12 talks about the network manager role. It says:

 

“These functions pre-date the EU exercising its competence for ANS and the UK would still be able to access Eurocontrol’s wider network management role as a contracting State of the Eurocontrol Convention”.

 

 

However, it then says:

 

“This instrument will amend the preserved SES Legislation relating to airspace in an operable form, but the UK will be unable to participate in EU governance arrangements of the SES Network Manager”.

 

 

What will our Government’s arrangements for the network manager be? If Eurocontrol is the SES network manager and that no longer applies to us, am I right in saying that we have to set up some sort of similar arrangement, or have I misunderstood exactly what this means and what its implications are?

 

As the noble Baroness, Lady Randerson, has already said, paragraph 7.13, which talks about functional airspace blocks, refers to the fact that the UK formed an FAB with the Republic of Ireland in 2009. Paragraph 7.14 then goes on to say:

 

“The legislation establishing FABs will not be retained in the SES EU Exit Regulations. As a non-Member State after exiting the EU, the UK will have no legal basis to participate in a FAB”.

 

 

My question is not dissimilar to that posed by the noble Baroness, Lady Randerson. I simply ask: if we are no longer able to participate in an FAB but have one with the Republic of Ireland, what will the impact of this be on 29 March under a no-deal Brexit? What exactly does it mean and what are its implications? Do we have an FAB only with the Republic of Ireland or do we have a number of others and, if so, what is the impact on, or implication for, those further FABs?

 

The document also refers in paragraph 7.16 to changes being made in the SI,

 

“so that the Member State functions in the regulation are retained and instead carried out by the CAA who will now oversee the implementation of the regulation”—

 

that is, these regulations. Bearing in mind that it specifically refers to a change being made in the SI, is this the only such change of significance in it or are there others that perhaps might not have been highlighted in the same way?

 

Paragraph 7.19, on the subject of ATM safety, refers to the fact that the,

 

“SES Legislation relating to safety forms our current mechanism … so that legislation will need to be preserved in UK law in an operable form to maintain continuity in safety. In doing this we are giving some oversight functions to the CAA which were previously for EASA”.

 

Am I right in saying that this means an additional interface on safety issues? If I am right, does the Minister agree that that is hardly a desirable development, since the more interfaces you have over safety, presumably potentially—I stress “potentially”—the more difficult safety issues can become? It would be helpful to have the Minister’s comments on that issue.

 

The Minister referred in her introduction to the SESAR programme, which is the single European sky air travel management research programme. Paragraph 7.25 of the Explanatory Memorandum says that,

 

“the SESAR Joint Undertaking (SJU) was set up under a Council Regulation to manage”,

 

the research and development programme. The paragraph goes on to say:

 

“As the UK will no longer be able to participate in the SJU after leaving the EU the Council Regulation setting up the SJU will be revoked”.

 

 

What exactly are the potential consequences of this as far as research and development are concerned? I believe the Minister said that we have played an active role within it. Will we inevitably be able to play only a less active role? From our point of view, is there likely to be less involvement in research and development programmes?

 

Perhaps the Minister can confirm—I am sure there will be no difficulty, since the Minister in the Commons has already said so—that on SESAR funding, if there is a no-deal exit the Government will underwrite what would have been paid to the UK under the current arrangements, to provide certainty and continuity for those involved. Paragraph 7.26 indicates that the pilot common project will continue, saying that there will be,

 

“legislation to require UK project participants who have been implementing it since 2014 to complete the delivery of projects which will maintain interoperability with the UK’s neighbouring States”.

 

Presumably, the fact that it refers to one project suggests that withdrawing in this way means that there will be other projects with which we will not continue, or will not get involved when they commence. Perhaps the Minister could confirm whether I am right; that hardly seems a desirable situation.

 

I turn to paragraph 10 on “Consultation outcome” and ask once again: were the trade unions involved in the consultation? References are made to various stakeholders. I do not know whether that includes the trade unions but, again, I would like to know the answer to that question. The noble Baroness, Lady Randerson, mentioned that the consultation paragraph refers to a view among stakeholders supporting,

 

“continuity in terms of the regulatory framework for ATM after the UK leaves”,

 

the European Union. The paragraph ends:

 

“The preparation of the instrument also takes account of representations from operational stakeholders on the impacts of the UK leaving the EU or ATM and ANS including from NATS, the UK’s en route air traffic services provider”.

 

 

Can the Minister tell us what those representations were? Were they simply representations in relation to continuity or were other matters taken into account in preparing this instrument? If so, in what way does the instrument reflect those further representations?

I thank noble Lords for their consideration of these draft regulations and turn to some of the questions raised. On participation in the UK-Ireland functional airspace block—the FAB—it is currently the only FAB we are part of but, in the event of no deal, there would be no legal basis for the UK to continue to participate in it. Nor could we compel Ireland to be part of it, so we have not been able to retain this part of the single European sky legislation in the SI. There is a possibility that EU states could involve neighbouring third countries in their functional airspace blocks and future UK involvement as a third country would be discretionary.

 

Co-ordination and co-operation with Ireland will of course continue, as both states are members of the international inter-government organisation Eurocontrol and, indeed, ICAO; both the UK and Ireland are delegated by ICAO to provide air traffic services in parts of the north Atlantic. The noble Baroness is quite right to point out that 80% of traffic entering or leaving the EU from the north Atlantic flies through that airspace, so it is imperative that we work together on this.

What is the figure likely to be that the Government will have to underwrite?

I am afraid that I do not have a specific figure. Future funding is under consideration as part of our wider airspace modernisation project. That will be looked at through the CAA, which has a contingency fund for airspace modernisation costs, including the deployment of new technology.

 

It is important to reiterate that the safety of airspace will not be jeopardised after we leave the EU. This SI, along with the aviation safety SI which has been laid and will be debated in the coming weeks, will ensure that we have the same high safety standards. Air traffic controllers will continue to be licensed by the CAA and relevant EASA regulations will be saved in national law to ensure that those safety standards remain.

 

On the pilot common project, UK industry has been involved in the governance to shape the scale and costs of SESAR deployment projects. The future deployment of new technology would need UK legislation under the Civil Aviation Act 1982.

 

The noble Baroness, Lady Randerson, asked about military and commercial use. The military is excluded from the single European sky legislation. The flexible use of airspace is about using airspace reserved for the military when the military does not need to use it. It is not strictly about regulating the military, as such, but rules will be transferred into UK law through the statutory instrument which will continue to oversee them.

 

NATS is currently the UK’s en route air navigation services provider and will continue in that role; there will be no difference. On the question of what will replace the SESAR programme when the UK leaves the EU, the level of participation in SESAR remains a matter for negotiation. We firmly believe that it is in the best interests of the UK and indeed of the EU to maintain close co-operation, but it is likely that UK industry will no longer be able to receive EU funding for SESAR deployment. As I said, the Government have committed to cover the costs of that.

 

I hope that I have answered all the questions. If I have missed any, I will follow up in writing. This SI, and others to be debated in the coming weeks, are a key part of ensuring that we have a functioning statute book for aviation should we leave the European Union without a deal. It will make sure that, in the event of no deal, the UK has effective regulatory arrangements for our air traffic management system, and that the aviation industry, the CAA and NATS, have clarity about the regulatory framework.

My Lords, I do not think that the Minister answered my noble friend Lord Rosser’s question on this instrument, or the previous one, about consultation with the trade unions. As she is aware, I am the vice-president of BALPA.

My apologies for not answering that question. We meet BALPA regularly to discuss a variety of issues, including Brexit. I cannot recall discussing this specific SI with BALPA but it is incredibly important that, as we develop these SIs, we take into account industry’s needs, our regulators’ needs and of course trade union needs.