Air Transport (Northern Ireland)
Debate between Baroness Hoey and Simon Burns(10 years, 10 months ago)
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Mr Burns
I hope that I can give some reassurance to my hon. Friend. That is a devolved matter, but what I will do, in the spirit of co-operation and friendliness, is write to him with the precise details to explain why it is and what the best way forward is for him and his Committee.
Mr Burns
That is fine; the hon. Lady is fine. I just thought for one ghastly moment that I had walked into a huge hole, so I am relieved that it was not me—not guilty, guv.
I welcome the fact that there is broad agreement—indeed, unanimity—on the importance of maintaining the UK’s position as a leading global aviation hub. The Government believe it to be vital to the Northern Ireland and wider UK economy. It is important to remember that the UK continues to have excellent aviation connectivity, both on a point-to-point basis and through the London hub. The five airports serving London offer at least weekly direct services to more than 360 destinations worldwide, which is more than Paris, Frankfurt or Amsterdam Schiphol. We have the third largest aviation network in the world after the United States and China.
Northern Ireland is increasingly well connected both to the rest of the UK and to the wider world. In 2012, Northern Ireland airports operated services to 23 domestic UK destinations on 36 routes, to 17 EU-27 destinations on 19 routes, to three other European destinations and, as we have heard from a number of hon. Members, to one north American destination.
Mr Burns
I am particularly grateful to the hon. Lady for mentioning that. She is absolutely right to do so. I am grateful not only because I am a Member from God’s own county, where Southend airport is, but because only in the last few weeks I have had the pleasure of visiting Southend airport and being able to find out for myself the increasing and expanding services that Southend airport is providing both to Northern Ireland and to other destinations in Europe. I think that it has the accolade of being called London’s fifth airport. No doubt, Mr Amess, you will correct me if I am wrong.
The Government believe that Northern Ireland is well placed to continue to grow the direct network as well as to enjoy vital connections through the UK and continental hubs. The Government recognise that, like elsewhere, the airports in Northern Ireland make a vital contribution to its economy. However, unlike in other parts of the UK, aviation plays a unique role in connecting Northern Ireland with the rest of the country. As such, aviation connectivity with the rest of the UK is extremely important to our national cohesion and will remain so.
We all know that the provision of commercial air services is subject to market forces. Ultimately, airlines operate in a competitive, commercial environment and it is for them to determine the routes that they operate and from which airports. It has been suggested that some form of intervention is necessary to protect air services between Northern Ireland and London from commercial market pressures. The hon. Member for Belfast East mentioned that. But air links to Northern Ireland remain commercially viable. Northern Ireland is well connected by air to London, with more than 18,000 flights a year between the two Belfast airports and the five main London airports. Those flights handled just over 1.9 million passengers in 2012. Over a third were between Belfast and Heathrow. That said, the Government fully support the efforts of the Northern Ireland Executive to develop the route network of Northern Ireland further.
Northern Ireland is also unique within the United Kingdom in that it shares a land border with another EU member state, as was mentioned by the hon. Members for Belfast East and for Vauxhall (Kate Hoey) and by the shadow Minister, the hon. Member for Poplar and Limehouse (Jim Fitzpatrick). Although that brings many benefits, the Government are highly conscious of the greater competition that it creates when securing air services, especially long-haul services. As such, in the recent Northern Ireland economic pact, we confirmed that the Government and Executive will work together to consider with the US authorities and other interested stakeholders the feasibility of establishing US pre-clearance facilities at Belfast International airport. It is complex work, with practical and legal issues that need to be addressed, but given that such facilities are currently available at Dublin and Shannon airports, we hope that progress can be made quickly. I think that all hon. Members present today, and those beyond the Chamber, fully appreciate the importance of establishing such a service, if the discussions and negotiations between our countries can come to successful fruition.
I think that every hon. Member has mentioned air passenger duty in the debate. As hon. Members have been gracious enough to mention in their comments, the Government have already taken action to ensure that the Northern Ireland aviation sector remains competitive. In November 2011, my right hon. Friend the Chancellor of the Exchequer reduced APD for passengers travelling on direct long-haul routes departing from airports in Northern Ireland. That move secured the continuation of the only current direct long-haul service operating from Northern Ireland. The Government have now gone further, as some hon. Members mentioned, and, reflecting the wishes of the Northern Ireland Executive, have devolved to Northern Ireland the power to set APD rates for long-haul flights departing Northern Ireland. The zero-APD rate for direct long-haul flights departing Northern Ireland, which took effect from 1 January 2013, puts Northern Ireland in a highly competitive position.
I listened carefully to my hon. Friend and the hon. Members for Vauxhall and for Poplar and Limehouse, and to the hon. Member for Belfast East in particular, when they spoke about the ways in which they would like to move forward. As the hon. Member for Belfast East correctly anticipated, I will be consistent and my comments will reflect what I said to her in my correspondence: APD is a matter for my right hon. Friend the Chancellor and it would be sensible for her to convey her views to the Treasury, so that it is aware of what she believes should happen. I will not detain hon. Members by going into detail on all the reasons for APD and why it is where it is at the moment, because that is well known. They can rest assured that we are aware of the views on and the reasons for APD and that the Treasury regularly monitors the situation carefully.
Mr Burns
The hon. Lady is extremely charming and in many ways intellectually seductive. She too has been a Minister. There may be only four close honourable friends of mine sitting in the Chamber, but unfortunately the walls have ears. I have always found that it is extremely wise when one is a member of a governing Administration to be bound by collective responsibility, which I happen to believe in as well; one fully understands the merits of the cases that the Government put forward as their policy and one fully supports them. I hope that explains to the hon. Lady that what my right hon. Friend the Chancellor had to do was due to the unsatisfactory, if not catastrophic, economic situation we inherited in May 2010. We have had to take some tough and difficult decisions. He is right, because it is right that we address the problems of the debt and the deficit.
I shall move on to the probably more neutral subject of aviation policy frameworks. Overall, the Government want aviation to continue across the country. To that end, we continue to deliver: we have delivered the Civil Aviation Act 2012, to bring the regulatory framework up to date, and we are implementing the recommendations of the south-east task force. We have also acted to ensure that the Northern Ireland aviation sector remains competitive. We plan to create an economic climate that enables people to travel and to use aviation to conduct business and visit friends and family as easily and cost-effectively as possible. Many people in Northern Ireland are concerned, as those in the rest of the country are, about capacity, particularly capacity in London and south-east England. Although it is across the Irish sea from Northern Ireland, capacity there does, as hon. Members have said, have a knock-on effect on those who wish to fly long-haul from Belfast and other parts of Northern Ireland to the rest of the world. They will frequently travel to London to meet their connections and then travel on or, as hon. Members have said, in some cases they go to Dublin.
The Government believe that maintaining the UK’s status as a leading global aviation hub is fundamental to our long-term international competitiveness. To make decisions, we need our evidence on the way forward to be as up to date as possible. Dealing with airport capacity, increasing the size of existing airports or creating new airports is highly controversial and arouses strong emotions. It is essential that we get it right, which is why I welcome the comments from the hon. Member for Poplar and Limehouse on his party’s attitude to how we are moving forward, but I exclude from that welcome the comments he made about Boris island; I must be totally independent, so I do not want to comment on any option and compromise that independence.