Airport Capacity

Baroness Randerson Excerpts

Tuesday 25th October 2016 Lords Chamber

[Lord Rosser (Lab)]

I thank the Minister for repeating the Statement made earlier today in the Commons by the Secretary of State for Transport. It is a Statement made against a backdrop of previous Conservative promises that, “no ifs, no buts”, there would be no third runway at Heathrow, a pledge given by the last Prime Minister and enthusiastically supported previously by the present Prime Minister and, it seems, her constituency local authority. The image of politics in this country has not been enhanced by today’s announcement in light of previous emphatic “no ifs, no buts” pledges, whether or not one thinks the now Government’s supported option announced today is correct.

While we welcome the fact that a decision on the preferred location for an additional runaway has been made, I want to pursue the question of the status of that decision. Apparently there is to be an extended though undefined period of further discussion and consultation which could last for a year or more before a final decision is made by Parliament. Is that correct? Is this further consultation in line with the national policy statement process in respect of only the implementation of the preferred option of a third runway at Heathrow announced today, or could the outcome of the consultation lead to a further change of heart by the Government away from their now declared preferred option? I would like a specific answer on that point.

Put another way, can the Minister confirm that all three options in the Davies commission report for additional runway capacity in the south-east are no longer on the table, and instead only the preferred option just announced is still there, and that likewise doing nothing to provide additional runway capacity in the south-east is not an option unless Parliament fails to approve the preferred option in a vote? Are we now at the stage as far as the Government are concerned of, “no ifs, no buts, it is a third runway at Heathrow and we the Government will consider only representations made in respect of its development”? If that is not the case, then uncertainty apparently continues for a further year or more.

Do the provisions of the national policy statement lay down that the further consultation must be of the length of time now suggested in some quarters? If not, why do the Government believe that such a further period of apparently extended consultation is needed before a final decision is made by Parliament if the only issues to be considered relate to implementation?

We have already said that, having asked the Airports Commission to undertake its report, there would have to be overwhelming evidence that the report and its conclusions were fundamentally flawed for us to depart from it. We will now need to consider the Government’s preferred option and the evidence to support the reasons they are putting forward for reaching that decision. We will expect to see the conclusions—and the evidence behind the conclusions—of the further investigations and analysis the Government have undertaken over the past 15 months following the publication of the Davies commission report. Perhaps now, today, the Government can tell us what impact they have concluded the preferred option of a third runway at Heathrow will have on achieving our climate change objectives and why.

I reiterate the four tests we have previously set out that any proposal for airport expansion must meet: that robust and convincing evidence is produced that the commission’s recommendations would provide sufficient capacity; that the United Kingdom’s legal climate change obligations can still be met; that local noise and environmental impacts can be managed and minimised; and that the benefits of any expansion are not confined to London and the south-east. We have already backed the Airports Commission’s recommendation that a statutory independent noise authority should be created, although apparently the Government have not yet done so.

We recognise the need for additional runway capacity in London and the south-east. Heathrow has been full for a decade and Gatwick’s single runway is the busiest in the world. Yet even following the announcement today, an additional runway is a decade or more away. What do the Government intend to do to address the runway capacity challenges that exist at present and will continue to exist until that additional capacity is provided? Do the Government have plans to utilise existing capacity in the south-east—for example, at Stansted and Luton—or are there any intentions to change practices at Heathrow or Gatwick in the short term to increase capacity? Indeed, what plans do the Government have for improving our international gateway airports around the UK, not least improving surface access by road and rail? There is no mention of this in the Statement. Does that mean that there are unlikely to be further capacity increases at our other airports? What will the Government’s position be if Gatwick still seeks to pursue its second runway option?

The Airports Commission said:

“The additional income generated as a result of operating a third runway should be allocated in a new way, and the airport should be obliged to develop a better and more collaborative relationship with its local communities, as some overseas airports have done”.

It went on to recommend that,

“a number of measures should be taken forward, in parallel with the approval, construction and operation of any new capacity at Heathrow, to address its impacts on the local environment and communities”.

These measures related to a “noise envelope” and,

“a ban on all scheduled night flights”,

between specific hours. The commission also called for,

“periods of predictable respite to be more reliably maintained”,

and compensation for,

“those who would lose their homes at full market value plus an additional 25% and reasonable costs”.

The commission said that the airport operator should deliver on,

“its commitment to spend more than £1 billion on community compensation”,

which, together with,

“a new aviation noise charge or levy … would fund enhanced noise insulation and other schemes”,

including support for schools. The commission also recommended:

“A Community Engagement Board should be established under an independent Chair, with real influence over spending on compensation and community support and over the airport’s operations … An independent aviation noise authority should be established with a statutory right to be consulted on flight paths and other operating procedures”,

and called for:

“Training opportunities and apprenticeships for local people”,

and:

“A major shift in mode-share for those working at and arriving at the airport”.

Finally, the commission said:

“Additional operations at an expanded Heathrow must be contingent on acceptable performance on air quality”,

and:

“A fourth runway should be firmly ruled out”.

Should the final decision be an additional runway at Heathrow, we would expect those recommendations from the commission to be adopted and delivered. We will certainly insist that the Government set out very clearly and well in advance how they intend to ensure that those recommendations will be adhered to, what action will be taken to ensure that there is no backsliding and what action will be taken if there is. Will the Minister categorically assure the House that all of the commission’s recommendations, to which I have just referred, will be implemented?

The Government’s Statement, although it represents progress towards a decision, does not represent a final decision, since a final decision will not be taken for at least another year. Today, the House was hoping for a decision that represented certainty; it is unfortunate that the Statement falls short of that.

[Baroness Randerson (LD)]

My Lords, I predict that the decision made today will solve nothing because it will be locked in legal challenge for years to come. It is a decision that answers the questions of decades ago, not today’s questions. It is bad for the environment and it is bad for the UK as a whole because still more investment will be poured into the south-east, ignoring the potential of regional airports such as Birmingham and Manchester. It is bad for passengers because they will pick up the tab in the end. The eye-watering cost of this project, which the BA chief executive has called “outrageous”, will, in the end, fall on passengers. The interesting thing is that the Statement hardly had a pound sign in it, and the figures that were quoted were largely speculative about possible benefits to the economy.

What estimates have the Government made of the cost to the public purse of this whole development? How much of the massive cost of infrastructure improvements, which are essential if the Government are to meet their promises on air quality, will the Government pay? We know that Heathrow is expecting airlines to contribute up front and that BA is refusing to do so, so are the Government confident that Heathrow can finance its portion of the costs?

This will inevitably lead to additional charges for airlines. What work has been done to ensure that airlines are prepared to accept those additional costs and will not simply move elsewhere? Are the Government convinced—because I am not—that passengers are willing to pay more to fly from Heathrow, because airlines will pass the cost on to them? Heathrow promises six more domestic routes by 2030 and in the Statement the Government promise to hold it to account. How do they plan to do that?

This will be seen as a decision for the south-east, but faced with the huge challenges of Brexit, we need to engage the whole of the UK, so what additional investment will the Government now allocate to the Midlands and the north to allow regional airports to develop and grow?

On air quality, the Statement makes bold claims, but there is not one tiny detail on how this pollution revolution is to be achieved. Can the Minister give us more information? I note that the Statement is much more downbeat on noise; it simply accepts the concept that it will be a noisy procedure.

Finally, I want to address an issue that was not covered in the Statement: the ownership of Heathrow, which is only 10% British-owned. Although the consortium that owns it has distributed £2 billion in dividends to shareholders in the past four years, it has paid only £24 million in corporation tax in the last 10 years. Will the Minister assure us that this airport, which will be favoured with so much public investment, will at least pay its dues in taxation?

Obscene amounts of money have been spent on persuading us and the Government that Heathrow is the right decision. We know the Conservatives are hopelessly split on this issue and have broken their promises on it and that the Labour leadership has flip-flopped backwards and forwards on it, but we on these Benches have remained steadfast for two decades.

[Lord Ahmad of Wimbledon]

My Lords, I will come to that final point at the end. Bearing in mind that the decision that has been taken is one that has been put off for generations, I was expecting a slightly more positive response from both the Opposition and the Liberal Democrats, but I will take those questions on.

The noble Lord, Lord Rosser, asked about the 2009 proposal. I have said repeatedly from this Dispatch Box that this proposal is markedly different. I highlighted in the Statement I made earlier that a major part of that is the mitigation measures, both in addressing issues of noise pollution and in the compensation package that has now been presented. Some £2.6 billion has been put forward as the overall compensation package, while £700 million has been allocated for specific issues relating to noise. Ensuring ventilation and specifically double glazing for schools and residences is a practical measure that is reflective of the concerns that local communities were raising.

The noble Lord raised the issues on the process of consultation. Again, as I alluded to in the Statement, the Planning Act 2008, in terms of the NPS process that was created from it, was set up to deal with precisely this kind of infrastructure project to ensure that there are no further delays. The process that the Government are now following and are committed to is reflective of the provisions of that Act. What will happen hereafter, again in response to the noble Lord’s questions, is to ensure that there is an effective airing, an opportunity for concerns to be raised and, yes, scrutiny of the decision.

The noble Lord asked about other options on the table. As I said a week or so ago to my noble friend Lord Spicer—perhaps it was a tad longer—the Government are focused on ensuring that, as the Davies commission concluded, an additional runway should be delivered by 2030 in the south-east. That is where the focus is. Based on that, the Government have decided, after careful consideration of three viable options, that the new runway, the north-west runway at Heathrow Airport, is the Government’s preferred option, and the NPS will be based on that option.

The period of time involved is very much part and parcel of the legislative process. One thing concerned me about the noble Lord’s contribution: he himself acknowledged that Her Majesty’s Opposition had declared that they accepted the Davies commission findings. So do we; I have said so repeatedly from the Dispatch Box. However, the important issue was on additional environmental mitigation measures. He asked about that, and I am pleased to tell him that if he goes on to the website he should find those additional reports and conclusions within the reports that we have now also made available through the GOV.UK website. If he has additional questions, I ask him to take them up with me in writing, or we can have a discussion. However, these discussions are being answered.

I believe that Labour’s four tests that he articulated are met. He mentioned the statutory noise authority; I assure him that we will consult on that as part of this process. He mentioned the importance of regional connectivity; again, I stated in the Statement that regional connectivity is a key consideration, with six additional routes from Scotland to Northern Ireland and to the south-west. New routes will be created, and we will ensure that provisions are sustained to ensure local slots from the additional capacity that is created. Those are all parts of the Government’s growing commitment to ensure that this is a decision that benefits not just the south-east but the whole country.

With regard to other airports, HS2 as a practical example will make the travel time from London Euston to Birmingham International circa 30 minutes. That is about increasing connectivity. Crossrail provides an additional level of connectivity across London through the Heathrow hub to ensure that through those extra slots our other regions are also better connected. Scotland has today welcomed the decision by the Government. The proposal for London Gatwick was very reasonable, practical, sensible, and, as I said, viable. Naturally, it is disappointed, but Gatwick remains part of the UK plc offering within the aviation sector.

There will be a specific six and a half hour ban on night flights which will be part of the planning process as we move forward. In terms of apprenticeships and local jobs, 77,000 jobs will be created as a result of the new runway. Over 5,000 apprenticeships will be created. These are much, if not all of what the noble Lord raised. It is not just a question of what is in this Statement, but the information that I have provided.

The contribution of the noble Baroness very briefly confused me. She said that it was bad for the UK. We are increasing capacity. If we do not increase capacity in the south-east for the benefit of the whole country, we are standing to lose a minimum of £21 billion. What is the Lib Dem solution? This is privately financed. Heathrow Airport has already committed to ensuring that those transport surface requirements are fulfilled as part of its equation. There is not a cost to the public purse.

I have already covered regional airports. I have already stated quite specifically that pollution targets will be met under the national air quality plan. In terms of British ownership, there are companies in the private sector that are owned differently. It is not for me to respond, but Heathrow airport has demonstrably shown its commitment to ensuring that south-east capacity—in this case, London—based on regional connectivity will be of benefit not just to the south-east, not just to London, but to the whole of the United Kingdom.