Regional Airports

Baroness Ritchie of Downpatrick Excerpts

Tuesday 2nd February 2016 Westminster Hall

[Catherine McKinnell]

My hon. Friend makes a very important point, but we must always look at this in both directions. It is not about where we would be happy to go via if we want to go somewhere, but where people are happy to come via if they want to come and do business where we are. That is increasingly important.

[Ms Margaret Ritchie (South Down) (SDLP)]

My hon. Friend is making compelling points about the need to develop airline and airport capacity. Does she agree that to do that, there needs to be a review of air passenger duty? I am thinking of us in the Northern Ireland context having to compete with the Republic of Ireland, where there is zero air passenger duty.

[Catherine McKinnell]

I thank my hon. Friend for that intervention. I will come on to that issue shortly.

To go back to the airport expansion issue, Newcastle currently has a six or seven times daily service in and out of Heathrow. It is used by 500,000 passengers a year, including many of my constituents, as well as residents and businesses from across the north-east, 50% of whom use the domestic service into Heathrow to connect to hundreds of destinations worldwide—an opportunity that no other UK airport provides for my constituents, or passengers from any other region, for that matter. As the Transport Secretary himself told the British Air Transport Association last week, we must keep

“beating the drum for the regions in this debate.”

He also said:

“One of the most persuasive arguments for new capacity is the links it will provide to the north, the south west, Wales, Scotland and Northern Ireland. Opponents have tried to suggest that a new runway would somehow undermine our domestic network. In fact the reverse is true.”

I could not agree more. However, these vital connections between the regions and Heathrow, which, let us be clear, is where domestic links are most valuable, are at risk. As the Airports Commission found, a crowded Heathrow has led to a decline in the number of domestic services, from 18 in 1990 to just seven at present, but it estimates that that could bounce back to 16, and an additional 1 million passengers a year, if a third runway is built. By contrast, the commission says that if we maintain the status quo at Heathrow, domestic passengers using the airport could fall by a staggering 2.5 million.

In that case, I hope that the Minister will acknowledge the vital links between regions such as mine and Heathrow and the economic benefits that they provide for regional economies. I hope that he can reassure hon. Members today that the impact on regional economies is playing a key role in the weighing up of the decision. Most importantly, I hope that the Minister will set out clearly when we can expect a decision once and for all, and provide a guarantee that we will see no more dither and delay from this Prime Minister.

The other major concern for regional airports in the UK at the moment is the devolution of APD to Scotland and Wales. As a result of the Smith Commission proposals, APD is being devolved to Scotland through the Scotland Bill, and the Government are now considering the case for doing the same in Wales, as part of the St David’s Day agreement signed last year. We know already that the Scottish National party programme for government includes a pledge to cut APD in Scotland from 2018, initially by 50% if the SNP wins power this year, with a view to replacing APD with a “more competitive regime” in the long term. Of course, it was welcome that the leader of the Scottish Labour party, Kezia Dugdale, pledged while visiting Newcastle that a Labour Scottish Government would not cut APD north of the border, acknowledging the risk of such a move to north-east airports and businesses. The implications for airports such as Newcastle and others, including Bristol, Manchester and Birmingham, should not be underestimated. We have long made that clear; we have done so since the Smith Commission’s proposals were published.

--- Later in debate ---

[Gavin Robinson]

The hon. Gentleman makes an important point. The Government’s 2003 White Paper suggested that we needed to build up the regions to reduce congestion in London, but the truth is that by expanding what we have in the south-east of England we are constraining the regions. We need to give the regions a fruitful opportunity to expand, and to compete on a level playing field.

[Ms Ritchie]

Does the hon. Gentleman agree that Northern Ireland depends greatly on exports—particularly farm exports—and that we need a strong, sound regional airport with connectivity links to access global markets?

[Gavin Robinson]

The hon. Lady is entirely correct. We have as much transport among all our planes in Northern Ireland as we do in the capital, and regional aviation links are crucial for exports.

When something is going wrong or when someone is suffering an injustice or is unwell, we often say, “You would not wish it on your friends, never mind your enemies.” I am quite pleased that there is a threat for the north of England. I am quite pleased that there could be a disparity between APD in Scotland and APD in the north of England, because that would focus minds and attention on the issue. I do not wish to see that disparity, but I do wish to see greater recognition in the United Kingdom of the issues that for many years have been constraining us with the foreign border in Northern Ireland. If the danger that we have faced over decades is now facing those in the north-east of England and across the United Kingdom, that can only be a good thing, because there will be recognition of the dangers, damage and constraints of this pernicious tax on aviation. I hope we find a solution.