Aviation Strategy

Graham Stringer Excerpts

Thursday 24th October 2013 Commons Chamber

[Graham Stringer (Blackley and Broughton) (Lab)]

It is a pleasure to follow the extremely erudite and knowledgeable speech by the right hon. Member for Saffron Walden (Sir Alan Haselhurst). I learned most of what I know about aviation and Stansted during the air inquiry in the run-up to the 1985 White Paper on aviation. At that time, as leader of Manchester city council, I was a director of Manchester airport. We put together solid arguments against the expansion of Stansted airport, which we believed would contribute to a continuing imbalance in the country’s economy. I should tell him that I have not shifted far from those views, although some of my then colleagues, who could not have envisaged that Manchester airport would end up owning Stansted, have shifted quite a long way from their views. That is for a more detailed future debate.

I agree with the right hon. Gentleman—I shall put it in slightly different words—that this country has been hopeless, not only in aviation infrastructure, but all infrastructure. We have the lowest motorway density in what used to be called western Europe; we have one small high-speed line, which, symbolically, goes out of the country; we have built one new runway—at Manchester airport—in the whole UK since the second world war; and we have poor broadband speeds. We have been very poor indeed at infrastructure.

I believe that the recession was caused by bankers and the euro—Government Members might have a different perspective—but, nevertheless, productivity has fallen, and if we are to earn our living in the world, it must increase. One way in which the Government can support industry and jobs, and the country’s competitiveness, is by ensuring that we have good infrastructure.

That brings me to the main point in the Transport Committee’s aviation strategy report. We have been through some of the arguments, but there is no shortage of runway capacity in this country. Figures in the written submissions to the report show that, at the main airports, only a third of runway capacity is used, and that, throughout the UK, we have 21 times the runway capacity we need. However, we are extraordinarily short of hub capacity. Heathrow is full, and what happens there cannot easily be replicated directly at Gatwick, Stansted, Birmingham or, unfortunately, Manchester.

The example given by Heathrow—we are not falling for its public relations—was the Seattle service. There are insufficient passengers in London to provide a daily service to Seattle from London. The British Airways Seattle service flies daily because of transfer passengers. Approximately a third of passengers at Heathrow are transfer passengers. I have chosen the Seattle example, but there are many others. Heathrow enables routes to connect London and the UK to the rest of the world.

The constraints on the hub capacity come in because, when we consider the number of serious destinations served, we realise that it is not just a numbers game. At the time of the report, Heathrow served 128 destinations, although there might be fewer now because it is declining all the time. At the same time, Amsterdam served 131 destinations; Frankfurt served 149; and Paris served 155. It is not good for the business of this country if our European competitors are connected to more parts of the world.

In the emerging economies, it is not the cities to which London and the UK are connected that stands out, but the fact that we are not connected to places such as Jakarta and Manila. We are not connected to huge mega-cities in China, such as Nanjing, Hangzhou, Chengdu, Guangzhou and Xiamen. One thousand more flights go from Frankfurt to China per year than from this country, excluding flights to Hong Kong. That cannot be good for the business of the UK.

On the alternatives, I think “mad” was the word that some professionals used to describe spending £30 billion on an airport in east London, with all the environmental problems that that would cause. It is said that fewer people would be affected by noise, and that would be true to start with. However, once an airport is built out there with all the jobs that would be created, people would, as the right hon. Member for Saffron Walden said, go to live near where they work and be affected by the noise. An estuarial airport costing at least £30 billion is therefore not an alternative.

Another alternative, which I think has been dealt with, is joining up airports. That has been tried in Toronto, Tokyo and Glasgow and it simply has not worked—people want to transfer within one airport.

There is no alternative but to expand Heathrow, otherwise this country will lose out. When the Roskill commission sat the figures would have been different, but all the arguments about having a major hub airport in London were before them. We are now in the commission’s future and we still have not dealt with the problem. We need to deal with it as quickly as possible.

Yesterday, there was a debate—I do not intend to repeat it—on air passenger duty. The Economic Secretary said that she did not accept the figures in the PricewaterhouseCoopers report, which indicated that if air passenger duty was abolished completely the Treasury would collect more finance and 60,000 extra jobs would be created. I accept that in any report consultants know who they are working for and include assumptions that are often helpful to the conclusion. The Minister said that she did not accept the assumptions, which is fair, but she needs to explain why, and that was not part of the debate. I hope that the Minister responding to this debate will explain why the assumptions are not acceptable, because it is difficult to understand why a report that states that more jobs could be created with less tax—an attractive proposition to Conservatives—is being rejected.

A report by York Aviation has also been mentioned, and I would be interested in a response from the Minister. The report did not look into the current situation, but it did study how many more passengers could be attracted to airline travel in long-haul, interregional, non-congested airports if there was an APD holiday. For Manchester—there are similar cases for other regional airports, such as Birmingham and Bristol—routes to Bangkok, Hong Kong, Delhi, Mumbai and Beijing would become viable if there was an APD holiday for two or three years. There would be no loss to the Treasury, just gain when people arrived in this country and spent money, because the routes do not currently exist. Will the Minister respond to the detail of that report, either now or at a future meeting, because that should also be an attractive proposition for a Conservative Government.

During the passage of the Civil Aviation Act 2012, I regularly questioned the then Transport Minister, now the Secretary of State for Northern Ireland, the right hon. Member for Chipping Barnet (Mrs Villiers), about why so many extra costs and regulations—in terms of security and extra red tape—were being imposed on airports. She said that they were not being imposed, but when the Civil Aviation Authority came before the Select Committee, it admitted that the costs had gone up, and now we find they have risen again. Will the Minister look at why these costs and burdens on airports have almost quadrupled since the Bill became an Act, contrary to the assurances from the then Minister?

Finally, many people make an environmental argument against aviation. We have heard about the perverse situation of air passenger duty, which is huge for people travelling from China and for those on other long intercontinental routes, forcing people into Paris and thus losing us business, but it also forces people to multi-ticket. For a long journey, it is much cheaper for someone to take a plane from Stansted, Gatwick, Heathrow, Manchester or Birmingham to a major European hub and then to fly on. By doing that, a family can save hundreds of pounds, but it leads to a 5% to 16% increase in carbon dioxide output and an increase in NOx gases, most of which are produced on take-off and landing. If someone changes in the middle east—increasingly a major competitor to Heathrow, alongside the European hubs—on their way to the far east, the result is a 37% increase in fuel usage. The case, therefore, for constraining airport capacity to improve the environment is actually having a perverse effect.

I should, at the beginning of my speech, have congratulated the Minister on his appointment. We worked together on the Transport Select Committee at one time, and I wish him well and look forward to his responses. I know he cares about aviation, which is not a well-understood part of the transport industry, but I genuinely believe that the Government’s policies are severely restricting what could be a genuine growth industry that could create many jobs in the country.

[Several hon. Members]

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