Doncaster Sheffield Airport

Debate between Dan Jarvis and Nick Fletcher

Monday 24th October 2022 Commons Chamber

[Nick Fletcher (Don Valley) (Con)]

On 13 July this year, Peel shocked my constituency with the announcement of the potential closure of Doncaster Sheffield Airport. This is the reason for the debate. Let me tell the House the story. I shall start with the place, then the stakeholders, how we got here, where we are now, questions for this House, and, finally, one last glimmer of hope.

Doncaster Sheffield Airport was originally RAF Finninglay. I remember going there as a very young boy. I was in the back of a Ford Escort, sat between two older brothers, with my legs sticking to black vinyl seats. It was not a pleasant journey, but, oh, what I saw when I got there: I saw Concorde for the first time, the Red Arrows, Harrier Jump Jets lifting vertically from the ground and then bowing in front of us before roaring off into the distance, and I heard the deafening sound of the Vulcan—what wonderful memories.

Sadly, Finninglay closed in 1996, but, to the joy of the people of Doncaster and beyond, the airport reopened in 2005 as Doncaster Sheffield Robin Hood Airport—a silly name, but that is for another day. I was fortunate to fly from there the second day after it opened. It was a wonderful place, and Members can see why it is now so dear to me and my constituents.

I have briefly talked about the place. I want now to talk about the stakeholders. We have the employees who are to lose their jobs, the businesses that will no doubt have to move, and the public who love our airport. We have Peel, the landowners and operators of Doncaster Sheffield Airport, the combined authority and its elected mayors, past and present, Doncaster Council and its mayor, central Government and me.

Let us talk about the people first. The airport has won many awards. It is a great building in a great place with a great car park, but it is the people who make it. The friends of Doncaster Sheffield Airport, the staff of DSA, the contractors who make it all work, and the firefighters and security who keep all safe. Then there are the businesses on site and in the hangars nearby: 2Excel and the Yorkshire Aero Club to name just a couple; Tui and its staff; and the public from across the region. All of these have been amazing and have kept me going through their continued work to keep the airport open in tough times. Tens of thousands of people have signed petitions—a Facebook page of 15,000 people. They are great people, all wanting to save the airport. To all of them, I say thank you.

Now let me talk of the two key players: Peel and the combined authority. Peel is a huge landowner across our country. Board members include: John Whittaker; Steve Underwood; and Robert Hough. Peel owned Sheffield Airport. It closed that and built houses on it. It also owned Teesside Airport, and would no doubt have closed it had it not been saved by Mayor Ben Houchen. Peel has a precedent for doing that.

Oliver Coppard is Mayor of our combined authority and has been in position since May this year. Before this, it was the hon. Member for Barnsley Central (Dan Jarvis). Oliver has devolved powers and moneys. Let me explain what that means. When people are asked whether they want more powers locally, they will say yes every time—why would they not? And that is what has happened here.

In 2018, under the leadership of the hon. Member for Barnsley Central, South Yorkshire became a combined authority with an elected Mayor. That means that powers move from central Government—this place—to the combined authority now led by Oliver. Our Mayor has powers over economic growth, education, infrastructure and transport. He also has a substantial amount of money that he can use to drive growth. This is gainshare money and is set out as £30 million a year for 30 years— a total of £900 million. He can borrow against this, too. Peel and our Mayor are the key players.

Doncaster Council is the local authority in which the airport sits. It has compulsory purchase powers and obviously deals with planning. The council is led by an elected Mayor, too.

Where do the Government sit? If these powers are devolved, there are only so many levers that they can use. The use of the Civil Contingencies Act 2004 has been raised by Members. I, too, have written to the Secretary of State on this issue. The Act states that if there is a disruption to a service that could cause potential loss or injury to human life, the Act could be used. Why is this so relevant at Doncaster Sheffield Airport? For those who do not know, our airport has companies on site that offer coastguard and oil spill services for central Government. We also have the National Police Air Service operating from a specialist-built facility—good people doing good things across our nation.

When I read about the Civil Contingencies Act, I too believed it was a way forward. Sadly, at least at present, it appears not to be. I spoke to the company that offers those services and, although there may be disruption to its business operation, it can still offer the services. Is that argument dead? Maybe not, but it does not appear to be as fruitful as first thought. Perhaps the Minister can advise us.

So what can the Government do? They can use the weight of their office and the Department to press for combined authorities and companies to do the right thing. I thank Baroness Vere and my hon. Friend the Member for Witney (Robert Courts) for their help and support. As the Prime Minister at the time said, we must do all we can to protect DSA, and I believe they have done much. Some may wish they could do more, and so do I—but that, I am afraid, is devolution. For them to do more, we would need to return powers to Government. Maybe that is the real answer.

Finally, there is me, a Back-Bench MP. Let me tell the House what I have done. Well, no, let us just say: much. This debate is not about me. It is a debate about saving Doncaster Sheffield Airport, and any other regional airport in the future. We have spoken of the site and we have spoken of the stakeholders. The question is how we got here.

It must be said that, as much as Peel has annoyed me, more than most over the past three months, it has at least put its money where its mouth is in the past. Many people believe that the Great Yorkshire Way, a wonderful road connecting the M18 directly to Doncaster Sheffield Airport, was paid for by the taxpayer, but no—much of the £60 million project was private investment, £11 million of it from Peel itself. As much as I would like to haul Peel over the coals at this stage, I cannot.

The sad fact is that Peel sought financial support from the combined authority for approximately three years, in the form of an equity share worth £20 million and then, reluctantly, in the form of a loan. For three years, I have been informed, Peel was led a merry dance by the combined authority, which provided a catalogue of excuses and delays without clear process. I have been led to believe that first, it claimed there was no money, despite devolution; secondly, it failed to grasp state aid issues and made no effort to lobby on them and finally, environmental concerns were given as the reason why the £20 million loan was not even put to the leaders of the combined authority in March this year.

[Dan Jarvis (Barnsley Central) (Lab)]

We are all here to support the hon. Gentleman and we want to engage in a constructive debate, but I must say that what he has been told is not the case. If I am fortunate enough to catch your eye, Mr Deputy Speaker, I will clearly articulate what the mayoral combined authority did for Doncaster Sheffield Airport and to support Peel over the period when I was the Mayor. I completely understand why the hon. Gentleman makes that point, but I can assure him, as I can assure all hon. Members, that in the period from 2018 to the point of the mayoral election we worked incredibly hard to support Peel and to work with the airport. If I get the chance later on I will be very clear about precisely what we did.

[Nick Fletcher]

I will come on to that, because I want a public inquiry to get to the truth of this matter, but I will cover that in my speech.

The combined authority appears never to have properly embraced Doncaster Sheffield Airport as its own airport, and to have badly underestimated the economic loss to the region. It was complacent with Peel and favoured investment closer to its own patch in Sheffield.

This region has failed to behave sensibly under devolution, continuing to act in silos rather than devising and implementing a cohesive economic plan. The economic loss could be simply catastrophic. I asked Peel whether, if the £20 million had been made available this April, we would be in this position. Peel said no. Let me just leave that there for the House: if the £20 million had been made available, Doncaster Sheffield Airport would not be closing. The combined authority may disagree, but the fact remains that the £20 million never appeared and Peel has said it is the fault of the combined authority. That is why I want a public inquiry. If that is not the truth, then what is? A public inquiry will find out.

[Dan Jarvis]

The hon. Gentleman is being generous with his time. In April 2022, DSA indicated that it did not wish to continue developing the loan proposal at that time. It is hard not to conclude that what he has been told, although I think he is presenting it in good faith, is not the case.

May I put one point to the hon. Gentleman? He has raised concerns about devolution, both today and previously, referring to the powers and the money vested in the Mayor. For the sake of clarity, it would be helpful if he could say precisely what powers—he has mentioned the gain share—and precisely what money he thinks the current South Yorkshire Mayor should be deploying in support of Doncaster Sheffield airport. What powers and what money?

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[Nick Fletcher]

Yes, massively. The important word in “combined authority” is “combined”—it is Doncaster, Rotherham, Barnsley and Sheffield coming together. I do not think the combined authority leaders, past and present, have told the leaders of those councils how important the airport is for the growth of the entire area and beyond. They have not sold it. They should have sold it; if they had, we would not be losing our airport. As I said, we need a public inquiry to find out the reasons for that, but I am afraid the silo working that I spoke about earlier is typical of Labour councils up and down the country.

[Dan Jarvis]

I am grateful to the hon. Member for giving way. He said a moment ago that the current Mayor has twice the money that Mayor Ben Houchen has in Tees Valley. I would be grateful to hear the facts that underpin that, and I am sure the House would be most illuminated, because that is not my understanding. Let me also return to the crucial point about powers. What powers does the hon. Member think are invested in the Mayor that he is not using?

[Nick Fletcher]

On the money, the South Yorkshire Mayor has £30 million per year for 30 years. That is £900 million. Ben Houchen, the Mayor for Teesside, has £15 million a year for 30 years. That is £450 million. I believe we are two years behind where we should be because Doncaster and Barnsley councils wanted to create a Yorkshire-wide mayoralty. Nevertheless, we are where we are.

With regard to powers, I say again that we have powers to set up mayoral development areas, we have compulsory purchase powers, we have community asset powers—we have all these different levers but, unfortunately, none of them has been used.

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[Dan Jarvis (Barnsley Central) (Lab)]

I congratulate the hon. Member for Don Valley (Nick Fletcher) on securing the debate and on the tireless work he has put in to try to save the airport, which I think is widely acknowledged. However, as has been observed by a number of right hon. and hon. Members tonight, we need to work together. We cannot afford for this to turn into a political row, because the stakes are too high. I think all of us recognise that Doncaster Sheffield airport is a huge economic asset for our region. South Yorkshire and the surrounding areas would be weakened and undermined if the airport were to close, so we all have an absolute responsibility to do everything we possibly can. However, as my right hon. Friend the Member for Doncaster North (Edward Miliband) said, the focus has to be on Peel.

I say this with all humility, but I have a pretty comprehensive understanding of the powers that are invested in the mayoralty and the money that is available to the Mayor. For four very difficult years, I worked with local leaders and national Government to make the most of that particular arrangement. I was sorry to hear the hon. Member for Don Valley say that he does not think it is working for South Yorkshire. Many very, very senior members of his Government and very many Conservative Members on his side do think it is working for South Yorkshire. I worked closely with a number of Government Ministers to ensure that it did.

[Nick Fletcher]

Will the hon. Gentleman give way?

[Dan Jarvis]

Let me just make a bit of progress, then I will give way. I want to reinforce the very important point that my right hon. Friend the Member for Doncaster North made about making sure that Peel does the right thing.

A very good and reasonable offer from the Mayor was put to Peel. That offer would have enabled it to continue to operate the airport for up to 13 months. That crucial 13-month period would have provided the time and space to ensure that the ongoing negotiations with the three parties that have stepped forward were given every chance to succeed. Even at this very late hour, I still hope that Peel—I hope it is watching this debate tonight—does the right thing and gets back around the table with the Mayor and the combined authority to look at whether it might be prepared to reconsider. I am happy to give way if the hon. Gentleman wants to intervene.

[Nick Fletcher]

I thank the hon. Member for giving way. I just want to go back to the fact that he believes devolution is working for Doncaster. The city region sustainable transport settlements bid was for £570 million. Some £110 million of that was taken off the top straight away for the trams in Sheffield. The rest of the money, the £460 million, was then divvied up between Doncaster, Rotherham, Sheffield and Barnsley. Another item is the cultural money that has just come to South Yorkshire—£1 million from central Government to the South Yorkshire Mayoral Combined Authority. How much did Doncaster get? It got £38,000, or 3.8%. I just want him to confirm that devolution is working for Doncaster people, because I do not think it is.

[Dan Jarvis]

What I can confirm—I am, frankly, uniquely well placed to be able to confirm it—is that for the period of time I was the Mayor, I moved heaven and earth to work very closely with all local leaders to ensure that the money we had available to commit was committed in a way that was fair and equal. Frankly, I am very proud of the fact that none of the leaders were ever able to come to me to say, “You were favouring Barnsley or Sheffield or Doncaster.”

The hon. Gentleman makes a specific point about the money invested in Sheffield in Supertram. That is a very legitimate question for him to raise. I advise him to talk to colleagues on his own Government Front Bench, because it is almost always the case, as a mayoral combined authority, that you are bidding for—I hope the Minister will confirm this, because this was absolute in my experience and it was the experience of other mayors—pots of funding that are controlled by national Government. Always it is the case that there are very strict rules governing the way that money can be spent. While I was the Mayor, I moved heaven and earth. The hon. Member will remember that we had a number of good-natured constructive conversations to ensure that Doncaster got its fair share. I can look him and the House in the eye and say that Doncaster, along with Barnsley, Rotherham and Sheffield, always got its fair share.

There are issues relating to how national funding pots are structured and created. We do not really do devolution properly in this country. We do not devolve pots of money to mayoral combined authorities for them to commit based on their priorities. The money that comes from Westminster and Whitehall always has very stringent conditions attached. That is not how it should be, but that is the reality.

I was sorry to hear the hon. Member raising concerns—admittedly, that had been raised to him—about the approach from the combined authority in recent years. I categorically assure him and the House that, over the four years that I was the Mayor, we worked tirelessly to make sure that we did everything that we possibly could to invest not just in Doncaster Sheffield airport, but in GatewayEast, as he knows well, because it is in his constituency. GatewayEast is an area that has huge economic potential not only for Doncaster, but for the wider region. Throughout my tenure as the Mayor, there were numerous and significant interventions.

Let me give a flavour of those interventions so that the hon. Member might be a bit reassured. In referring to the Great Yorkshire Way, he made the point, rightly, that private investment went into funding that, but he should also understand—I hope he does—that, in March 2017, the mayoral combined authority provided £9.2 million for the construction of the Great Yorkshire Way. In March 2019, we granted a loan of £3.5 million for capital works, helping to support a key source of the revenue at Doncaster Sheffield airport. In March 2020, there was a second loan of £5 million to enhance passenger capacity. In June 2020, the MCA agreed to extend the £3.5 million loan period for the car park enhancement and defer all interest payments until 2024 to support the airport through the pandemic, which was clearly an incredibly challenging time for airports around the world.

In November 2020, discussions about a significant equity investment began. The MCA took that very seriously at the time: I appointed my then chief exec to lead on the negotiations and we appointed consultants to look very carefully at the business case. It was ultimately determined that the investment would not comply with the subsidy control rules. We sought to work around that, and that is why discussion started at that point about a £20 million loan.

[Nick Fletcher]

We are talking about the jewel in the crown of South Yorkshire Mayoral Combined Authority—the one thing that can set the entirety of South Yorkshire area alight and bring investment into our area—and the hon. Gentleman said, “It has been given an £8.5 million loan in the last five years”. That is what it has had: an £8.5 million loan in five years for the jewel in the crown, for 1.8 million people’s economic growth and economic future. The Mayor has just spent £24 million, I believe, on some new trams. I am lost for words—I am sorry.

[Dan Jarvis]

The hon. Member has got his maths wrong. The first thing I said was that £9.2 million had gone into supporting infrastructure—

[Nick Fletcher]

Will the hon. Gentleman give way?

[Dan Jarvis]

No, I will not. I will make a bit of progress. I then went on to detail a series of other financial interventions that were set alongside a huge amount of activity that was going in to support the airport. Here is the critical point, which I made to the hon. Member earlier: in April 2022—bear in mind that, as he will recall, we were in purdah at that point—the Peel Group indicated that it did not wish to proceed with the work around the £20 million loan.

[Nick Fletcher]

Will the hon. Gentleman give way?

[Dan Jarvis]

No, I will not; I am going to make some further points and I will give way to the hon. Member in a moment.

The truth of the matter is—I say this with all humility—that I was there; I was in the room, did the meetings, had the conversation and directed my officers to do the work. We worked very closely with Mayor Ros Jones, who has been a tireless supporter of Doncaster Sheffield airport for many years. The truth is that we completely acknowledged the huge value that DSA added to our regional economy and, as part of the work that we were doing, underpinned by a very detailed strategic economic plan that I am not sure that the hon. Member for Rother Valley (Alexander Stafford) has read, we produced a renewal action plan that provided the wider vision for the kind of economy—

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[Dan Jarvis]

Thank you very much, Madam Deputy Speaker.

The other really important point for hon. Members to understand is that, in addition to the significant financial interventions and the clear recognition of the importance of DSA as part of the economic future of South Yorkshire, we did three other really important things as well; the hon. Member for Don Valley knows about them because he and I discussed them at the time. I was always of the view that one of the greatest things we could do to support the long-term economic viability of DSA was to continue to invest in the supporting infrastructure, to make it easier for people to get to the airport. That is why my then officers, working closely with Doncaster Council, did a huge amount of work to draw together the basis of a proposal that would have put an east coast main line station at Doncaster Sheffield airport. That, I think, could have been transformative for the airport and a lot of work, done closely with Transport for the North, went into drawing together the basis of that significant infrastructure proposal.

The hon. Member for Don Valley knows where we got to with that; it was a credible proposal that went forward to national Government. Unfortunately, it was not supported by national Government. Additionally, we also looked at what we could do to better enhance intra-regional connectivity. I was very conscious that there were transport infrastructure interventions that we could have carried out that would have made it easier for local people in the South Yorkshire area to get to the airport. Again, we were not successful in drawing down money to support that.

The third point, with which the hon. Member for Don Valley is very familiar, is that we put a lot of time and investment into developing a freeport proposal for the GatewayEast site. I will let the House into a bit of a secret: not everybody in South Yorkshire was necessarily in favour of that proposal because it potentially came with a range of measures that were not universally popular. However, the decision I took, working closely with the mayoral combined authority, was that, as part of the process of supporting Doncaster Sheffield airport and making it more economically viable in the longer term, we would play the game and work closely with national Government. On that basis, I took the decision to put forward a freeport proposal for GatewayEast, adjacent to Doncaster Sheffield airport. That proposal was not successful even though the Treasury’s own analysis, I think, subsequently scored our South Yorkshire bid better than other bids that were ultimately successful.

We tried to get the east coast main line station put in, and we put forward a proposal that was unsuccessful. We did work to improve intra-regional connectivity; that was unsuccessful. Then we put forward the freeport proposal and that was unsuccessful.

[Nick Fletcher]

The hon. Gentleman has questioned my maths. I am very good at maths: £5 million and £3.5 million is £8.5 million—that is the loan—and £9.2 million was used for the road. Peel put in £11 million, which is £1.8 million more than the combined authority put in. That is what I am trying to say.

I am not making excuses. I am asking why, if the airport is the jewel in the crown of South Yorkshire—I am sure that those are the combined authority’s own words—it is not being supported more. I am not giving excuses. I understand the hon. Gentleman’s comments about freeports; I am trying to get an investment zone for the area now, which will hopefully be even better than a freeport. But if the combined authority is not seen to invest in its own infrastructure and its own jewel in the crown, what does that say to the Government? “Are you prepared to invest in your own?” “Well, no, we’re not.” What is the point?

We need vision, but as my hon. Friend the Member for Rother Valley (Alexander Stafford) says, that is what has been lacking. With silo working, it has become “Sheffield is trams and Doncaster is planes.” I am afraid that that is just not good enough.

[Dan Jarvis]

I recommend that the hon. Gentleman spends a bit of time with my hon. Friend the Member for Sheffield South East (Mr Betts) to get a sense of the realities of local government finance. The reality is that the revenue that the Mayor has at any one time to expend is very limited. The hon. Member for Don Valley mentioned the £30 million of gainshare; there is a very strict split between capital and revenue.

My hon. Friend the Member for Sheffield South East made the point that there are a range of other financial commitments that the mayoral combined authority has to service. There are other infrastructural investments that have to be made. The job of the Mayor is to look at things in the round and work out what money is available and where it can best be deployed.

The hon. Member for Don Valley did not mention the sum of £20 million, which is a very significant commitment from the mayoral authority. As I have said to him previously, in April 2022, when we had gone into purdah and I was going to be Mayor for a couple more weeks, the Peel Group indicated that it did not wish to continue developing the loan proposal at that time. That was an offer in good faith that had been worked up between senior officers in the mayoral combined authority and senior officials in the Peel Group, but they took the decision that they did not want to continue those conversations. That is the reality of it.

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[Dan Jarvis]

I will take the hint, Madam Deputy Speaker, and draw my remarks to a conclusion.

Members put it to the Secretary of State at Transport questions recently that we thought there was merit in having a grown-up conversation. The Secretary of State said that she did not want to do that. That is a great shame. Imagine what it must feel like tonight for the people who work at Doncaster Sheffield airport. They can see the clock ticking down and they are days, hours, away from losing their jobs, yet Government Ministers will not even sit down with Members of Parliament to hear their concerns. I would be happy to give way to the Minister if she can tell me that she is happy to arrange an urgent meeting with Members from across the House. In my time in this House, I can never remember a situation where a matter of such importance as this has not led to a ministerial meeting.

[Nick Fletcher]

I just want to quickly go back a bit, and then I will address the point that the hon. Gentleman is making. I believe that the £20 million loan was withdrawn around about 12 March and never actually made it to the cabinet meeting that was going to sign it off. That is when it should have been signed off. I believe that there is no record of it in the minutes. As I say, this is only what I am led to believe. There was no record of it in the minutes; it was not there. I do not believe that the Mayor for Doncaster raised it either. That is an important point, and maybe we can look at those minutes to see if it was there.

This is why am asking for a public inquiry. I am trying to be collegial here. I have tried all the way through this, and I will continue to try, but I have been excluded from meeting after meeting of Labour Members with regard to working groups and suchlike. I have also spoken to the Minister and the Secretary of State several times about the Civil Contingencies Act.

[Dan Jarvis]

I am mindful of your advice to draw matters to a conclusion, Madam Deputy Speaker, but would say to the hon. Member that we are trying to save the airport here. He might want to dig into the minutes but, as I said to him previously, the offer was on the table and in April 2022, Peel indicated that it did not wish to continue with developing the loan proposal at that time. That is the absolute fact of the matter.

My final point is to return to the frustration, which is held by many, that we have not had the opportunity to meet Ministers to impress upon them the importance of this issue. I very much hope that when the Minister comes to the Dispatch Box she will take the opportunity to confirm that she will urgently convene a meeting and give Members from right across the House and from all in the region who have been represented in the debate the opportunity to have a constructive meeting with the Secretary of State, given the importance of the issue. I very much hope that she will take the opportunity tonight to confirm that the Secretary of State will be prepared to do that.