Air Traffic Management and Unmanned Aircraft Bill [HL] — House of Lords, 2021-01-21
Topic: Transportation
Charlotte Vere (Conservative, Centre-right): My Lords, I thank the noble Lord, Lord Tunnicliffe, NATS and the CAA for their very constructive engagement on this issue, which has resulted in these government amendments. In moving Amendment 12 I will speak also to Amendment 21 Amendment 12 seeks to amend Section 34 of the Transport Act 2000 to give the CAA greater flexibility to consider representations about an alleged or apprehended contravention—or a complaint—and to ensure that resources are used effectively. Section 34 of the Transport Act 2000 currently places an obligation on the CAA to investigate a complaint if the representation is made by—or on behalf of—a person who appears to have an interest. While this obligation does not apply if the representation appears to the CAA to be frivolous or vexatious, in practice this section as currently worded gives the CAA little discretion not to commence formal investigations. As a result, the licence holder and CAA may be presented with a considerable burden when engaging with an investigation which could potentially have serious resource implications, even where the CAA then decides not to take further enforcement action Amendment 12 will provide clarity and flexibility for the CAA and stakeholders as to when investigations should be commenced. This will reduce the potential for unnecessary investigations which have no material effect—or which result in no enforcement action being taken—without watering down the CAA’s powers, or the ability of parties to raise a complaint. The CAA will publish updated enforcement guidance, which can refer to the application of Section 34 Amendment 21 is a minor, consequential amendment. The Bill already makes a consequential amendment to Section 34 of the Transport Act 2000. That provision would have changed the current reference in Section 34 from "condition of a licence" to "licence condition". As Section 34 is being amended more substantively, that consequential amendment is no longer required I turn briefly to Amendment 19, tabled by the noble Lord, Lord Tunnicliffe. I am grateful to the noble Lord for engaging with this. Amendment 19 seeks to ensure that the CAA would impose penalties on the licence holder, NERL, only where the contravention of the licence or Section 8 duty is serious, and it was deemed proportionate to do so. Following extensive engagement with NERL and detailed consideration, the Government are of the view that this amendment is not necessary. There are already sufficient legal checks and balances contained in the Bill, as well as through policy and guidance, to prevent disproportionate fines being levied on a licence holder The proposed amendment would also depart from the approach taken in the equivalent provision in the Civil Aviation Act 2012, meaning that the threshold for imposing a penalty relating to NERL would be higher than that for an airport’s economic licence. This would create a disparity in CAA enforcement across the sector. I do, however, appreciate the importance of considering the seriousness of the contravention, along with the proportionality of imposing a fine, and I will take this opportunity to reassure noble Lords of what provision has already been made First, the power of the CAA to impose a penalty is discretionary, and it would do so only for the most serious contraventions or as a matter of last resort. All regulators, including the CAA, are already required to consider the better regulation agenda—as well as the Macrory principles of better enforcement—in exercising their regulatory and enforcement functions. The Macrory principles explicitly state that enforcement must be proportionate to the nature of the offence and to the harm caused. In practice, proportionality will be considered at every stage of a stepped process to enforcement, which will be set out in the CAA’s enforcement guidance and statement of policy on penalties. The CAA is required to consult relevant stakeholders on the latter. The CAA will decide whether to impose a penalty, and the level of penalty, by assessing the seriousness and harm caused to users by the contravention, through the lens of its statutory duties under the Transport Act 2000 If the CAA were to propose a penalty on the licence holder, the Bill contains procedural safeguards, in the form of consultation with the licence holder, before the penalty could be imposed. This would give the licence holder the opportunity to highlight the steps it is taking to mitigate the contravention. The CAA would consider all stakeholder representations ahead of imposing a penalty. If the licence holder were to disagree with an imposed penalty, they could appeal to the Competition Appeal Tribunal, which would have to have regard to the financeability duty imposed on the CAA under Section 2 of the Transport Act 2000. This approach is broadly aligned with equivalent provisions in the Civil Aviation Act 2012. The Government’s decision to modernise the air traffic licensing regime recognised that appropriate alignment with similar regulatory regimes would provide stakeholders with greater clarity and certainty and assist the CAA in exercising its regulatory functions and statutory duties in a more effective manner Turning to Amendment 20, I think we are agreed that the CAA should have a discretionary power to investigate complaints under Section 34, as set out in Amendment 12. It would therefore be inconsistent to narrow the power for the CAA to obtain information in relation to Section 34. I beg to move.