Air Services (Competition) (Amendment and Revocation) (EU Exit) Regulations 2019 — House of Lords, 2019-10-07
Topic: Mixed Topics
Charlotte Vere (Conservative, Centre-right): My Lords, the Government are working to secure a new deal with the EU. However, if we have to leave with no deal, the Government are committed to preparing for this outcome With regards to commercial aviation, we have already conducted intensive work to ensure that there is a functioning legislative framework and an effective regulatory regime for this critical part of the UK economy. This new instrument will ensure that the legislative framework and regulatory regime for this sector remain robust. The Government have given very careful consideration to the appropriate procedure for progressing this instrument. For the reasons I will shortly outline, it is important to have this instrument in place by exit day. That is why we have selected the "made affirmative" procedure which, while allowing for parliamentary scrutiny, should ensure that outcome. These draft regulations will be made under the powers conferred by the European Union (Withdrawal) Act 2018, and amend EU regulation 2019/712, which sets out an approach to safeguarding competition in air transport Fundamentally, this instrument ensures that, w responding to anti-competitive practices, the UK will have the same powers to protect UK airlines as will be available to the EU to protect EU airlines. Previously, regulation 868/2004 provided for redressive measures to be imposed when subsidisation and unfair pricing practices by third-country airlines caused injury to EU airlines. The previous SI on this subject introduced corrections to that regulation to ensure it would apply when the UK left the EU. However, since the extension to the UK’s departure from the EU, regulation 868/2004 was repealed and replaced with regulation 2019/712. The reasons given were that the previous regulation was judged to be ineffective in respect of its underlying general aim of fair competition. For instance, there was a lack of definition around the initiation and conduct of investigations or the criteria for doing so The new EU regulation provides the European Commission with the power to conduct an investigation where there is prima facie evidence of anti-competitive practices causing or threating to cause injury to EU air carriers. Areas where discrimination could occur include the allocation of slots, administrative procedures and the arrangement for selling and distribution of air services. If such evidence is found, redressive measures can be taken to offset any injury. Such redressive measures include financial duties The withdrawal Act will retain regulation 2019/712 in UK law in its entirety on exit day. The draft instrument being considered today makes the changes necessary so that this EU regulation continues to function correctly after exit day. The policy content of the retained regulation will remain substantially unchanged. The changes that have been made are primarily technical and necessary to ensure the correct application of these measures after the UK leaves the EU As part of these changes, the UK Civil Aviation Authority will assume some of the responsibilities previously placed on the European Commission. For instance, the UK Civil Aviation Authority will examine and investigate any complaint of this nature. The UK CAA will report on these findings to the Department for Transport, where the Secretary of State will take a decision whether to adopt any redressive measures. Such measures will be adopted by statutory instrument, using the affirmative procedure In the event of no deal, the EU could apply its regulation to the UK or its airlines if they were engaged in the practices described in the regulation. Therefore, the changes being made by this SI also ensure that EU member states and their airlines will be subject to the UK’s measures. This preserves a level playing field from exit day and is why we have selected the "made affirmative" procedure, which ensures this important measure is in place on 1 November, if required. While we would prefer to leave with a deal, this instrument will ensure that, in any scenario, the UK and UK airlines will have equivalent access to the type of measures EU member states and EU airlines can take against anti-competitive actions. I beg to move.