Regional Airports

Debate between Mike Kane and Gordon Marsden

Tuesday 15th July 2014 Westminster Hall

[Mike Kane]

I am grateful to the hon. Gentleman for his contribution. Rail links are massively important for increasing connectivity between airports and regions. I am reminded of when Manchester won the casino bid in 2008. I do not want to go over the history—

[Mr Gordon Marsden (Blackpool South) (Lab)]

Don’t.

[Mike Kane]

But we have to start thinking as a region. The best site might have been in Blackpool, but Manchester won the bid because of not only its corporate social responsibility but the direct flights to a nearby international airport. By increasing rail links across our regions and agglomerations, and across the north as a whole, we can in future act more effectively as a single economy.

London Luton airport has recently received final planning consent for a £100 million development to increase annual passenger capacity from 12 million to 18 million by 2031.

--- Later in debate ---

[Mr Gordon Marsden (Blackpool South) (Lab)]

It is a great pleasure to serve under your chairmanship, Ms Dorries, and take part in this debate. I congratulate my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) on securing it and on making such a forceful case, not just for Manchester airport but for regional airports throughout the country. Indeed, he laid out his case with such aplomb that I thought that a Government so handy about and keen on appointing tsars might make him airport tsar in the near future.

The debate gives us an important opportunity to hear about the great benefits provided by local airports and the significant challenges that they face. That has been reflected in hon. Members’ contributions. My hon. Friend the Member for Blackley and Broughton (Graham Stringer) proposed a radical open skies initiative as a potential game changer; the hon. Member for Strangford (Jim Shannon) clearly outlined the positive signs for Northern Ireland; and the hon. Member for North Thanet (Sir Roger Gale) rightly spoke about the situation at Manston. I congratulate my hon. Friend the Members for Luton South (Gavin Shuker) and his colleague on the part they have played in getting the expansion at Luton. He rightly drew attention to the skills and the business opportunities there. The right hon. Member for Gordon (Sir Malcolm Bruce) reminded us, with the sad tale of British Airways’ withdrawal from Aberdeen, of the broader responsibilities that airlines have to their local communities. I cannot forget my parliamentary neighbour, the hon. Member for Fylde (Mark Menzies), who rightly praised Blackpool airport, pointing out its value not only to his constituents, but to mine. Blackpool airport has a distinguished past, with aviation activity since 1909 and mass Air Force training in world war two. Today it offers a wide range of medium-range destinations, not least via Jet2.com.

The debate is such that we have to touch on what more can be done for the communities that regional airports serve and how Governments have a role in helping the airports to expand. Putting regional airports at the heart of our transport policy as economic generators and job creators in the communities in which they operate reaffirms their role as vital links to national infrastructure, crucial to spreading economic growth more evenly across the regions. UK regional airports served 220 million passengers in 2013, and Manchester welcomed more than 20 million of them. Although overall UK airport use fell during the recession, Manchester increased its share to 9.1%, and other major airports outside the south-east such as Edinburgh, Bristol and Leeds have also increased their share. Experiences vary across different regional airports, so a robust understanding of them and an overarching narrative regarding their needs and opportunities are essential at the heart of Government.

There is no doubting the great economic value that airports create for their communities. They bring trade and tourism into areas and provide jobs, apprenticeships and skills programmes for local people. In meetings with airport operators, I have often stressed how essential it is that they scale up that community engagement and promote what they already do, which can be substantial. I am therefore delighted that the Airport Operators Association publicised that work in its recent report, “Airports in the Community”. My hon. Friend the Member for Wythenshawe and Sale East referred to some of that work. Poignantly, in view of what the right hon. Member for Gordon said, Aberdeen airport, apart from the 2,000 jobs on-site, helps to recruit 1,700 overseas students who attend the Aberdeen business school. Newcastle airport employs 3,200 people directly, but supports a further 8,000 jobs in the north-east. The story of airports’ great value is consistent across the country. In the north-west, John Lennon airport has 2,000 people working on-site; Manchester has shown great corporate social responsibility work with its airport academy and its young people’s skills academy, which targets young people in Wythenshawe in my hon. Friend’s constituency. A whole raft of good activity is going on in airports.

Several airports are putting education at the heart of their community outreach. Birmingham has its own flight school, available for pupils across the midlands, and Leeds Bradford offers students across west Yorkshire aviation masterclasses. Those are programmes of real substance. East Midlands airport has won a “business in the community” award and airports of all sizes and resources can make a valuable and prized contribution to their local area. Biggin Hill, central to the heroic fights of the battle of Britain in the second world war, but now a strong local airport, is in the second year of its Nick Davidson memorial flying scholarship. He was a British Airways pilot who pledged to fund a scholarship to train a new young pilot every year. London Gatwick, Heathrow and Stansted, while not regional airports, run their own excellent community schemes, too. Heathrow has put 3,500 jobseekers through basic skills training; Gatwick has a scheme to support young entrepreneurs; and Stansted raises substantial sums of money for the local air ambulance trust. The success of those schemes shows the value of expanding them more broadly across all regional airports.

That is one side of the relationship between airports and communities. The other is what can be done by Government and local stakeholders at all levels to support regional airports, to keep their operations viable and to help them to expand into new and prosperous routes where possible. In that, the Government cannot always claim to be keeping up their end of the deal.

In last year’s spending review, the Government announced money for funding public service obligations for new air routes. That funding was increased to £20 million a year and rebadged as the regional air connectivity fund in this year’s Budget. Announcing the scheme in March, the Chancellor named three airports he believed might benefit: Liverpool, Leeds and Inverness. Two out of those three—Liverpool and Leeds—may not qualify for any support under the current rules. European state aid guidance makes clear that the fund should be directed at smaller regional airports with fewer than 3 million passengers. There is support for regional airports with between 3 million and 5 million passengers, but only in exceptional circumstances. Does the Minister yet have an answer as to how to define those exceptional circumstances? If so, can he tell us? It is a year since the funding was first announced, but airports such as Newcastle, Belfast, Liverpool and Aberdeen are in the dark as to whether they can they apply for funding. Can he reassure them that investing scant time and money in making an application to the fund will be anything more than a trip down a blind alley?

The European Commission also wants to prevent airlines from simply switching from one airport to a local competitor, but those rules could end up being highly restrictive. Great city regions, such as Manchester and Liverpool, need to have their own functional economies and access to trade routes. What progress are the Minister and his officials making with the Commission on the regulations to make it easier for all of our regions to get the support they need?

Today’s written ministerial statement on the Davies review lets slip the prospect of slightly more procrastination, with a consultation on guidance for the fund to be announced soon, but not the guidance itself. While we are on the subject of procrastination, what about the rest of the statement, which delays the creation of the Davies’ noise ombudsman until after the election and fails to answer the questions raised by businesses and more generally? The Opposition have been emphatic that dealing with issues of noise and emissions is central to building consensus between regional airports and the communities they serve. Those communities who feel pressure and are concerned about the future might well feel aggrieved if they cannot even start work on those issues now. We need robust evidence to take the debate forward.

The Davies commission pointed out that Government investment would represent only 5% of the typical cost of a new start-up route. Do Ministers foresee that the investment will be a game-changer for regional airports? What support will be available for those airports that will not qualify, because they have more than 5 million passengers, such as Manchester, Edinburgh, Birmingham and Glasgow?

All these airports share the need for quality investment in surface access. Consumers think about the whole journey from point A to point B and how easily accessible their local airport really is. Investment in the local roads network is essential, but so is the prioritisation of public transport routes and reducing carbon emissions. We have seen great improvements at airports such as Manchester—the city’s excellent Metrolink will be going to the airport from next year, which is ahead of schedule—and there has also been investment in Gatwick, where renovations to the train station are under way, but smaller airports must not be neglected. One way of ensuring that is for airports to have real influence on local enterprise partnership boards and to benefit from the increased devolution of funding and decision making. The Department for Transport is already a significant contributor to the single local growth fund, which will be top-sliced under Government proposals, so it is essential that the interests of transport connectivity in general and airport connectivity in particular are reflected in the way funding is distributed. How is the Minister monitoring how airports and their communities are benefiting from the bidding stage of the single local growth fund?

The principles and approaches I outline are echoed in the proposals that we in the Labour party have put out to benefit the regions—not just those produced by the shadow Business Secretary, my hon. Friend the Member for Streatham (Mr Umunna), and those in the Armitt infrastructure report, but now those in the Adonis document, which looks at devolution and local decision making. We fully recognise local airports’ role as economic drivers, and their potential to prosper with truly devolved local structures and funding. The history of Manchester airport—it stood out against the depredations of Thatcherism in the mid-1980s to construct a model that involved local councils, and it has been able to build on that with the combined authority arrangements—demonstrates that potential. As regional airports look at the increasingly popular point-to-point flights, the national network is increasingly relevant for them.

[Mike Kane]

Will my hon. Friend give way?

[Mr Marsden]

I’m afraid not, because of lack of time.

There is need for short-term action as well, which includes saying something about expanding the capacity in the south-east. I am sure that the Minister is aware of the letter signed by the 50 business leaders in The Sunday Times this weekend. Given that the ministerial statement says nothing to answer the question of regional airports at all, will he make a definitive statement in the near future? My hon. Friends have talked about air passenger duty, and regional airports feel aggrieved because they feel that long haul has been given benefits, while they have been given none.

In the broadest sense, we must have political consensus on how to move forward on airport capacity. We want to reach that consensus soon in the next Parliament, but it has to be in far more expansive and wide-ranging ways than the Government’s pale version of Michael Heseltine’s vision. The Labour party is determined to ensure that the bright future for regional airports, as highlighted in this debate secured by my hon. Friend the Member for Wythenshawe and Sale East, comes to pass.