Heathrow

Karl Turner Excerpts

Thursday 7th June 2018 Commons Chamber

[Jesse Norman]

My right hon. Friend has asked a vast number of questions. If I do not cover all the points that she raised, I shall be happy to write to her. She mentioned the Cabinet Sub-Committee; I am not a member of the Sub-Committee and have not seen the papers that were presented to it, so I cannot comment on that.

My right hon. Friend asked whether any liabilities had been created, and directed my attention to a specific clause. It is of course a very narrow legal point, but I entirely accept that it is important to focus on it. The Government’s position is that no liabilities have been created, and therefore none need to be disclosed; and no contingent liabilities have been created. The statement of principles is a standard document on which the Government took advice both from distinguished leading counsel and from a top-tier firm of solicitors. It simply allows Heathrow Airport Ltd to reserve rights that it would normally have under commercial law, while making clear that the Department has no liabilities in respect of the issues already described.

We, as a Department, are clear about the fact that the statement of principles is not legally binding. It does not create any legitimate expectation. It does not fetter the discretion of the Secretary of State. It does not give Heathrow Airport Ltd the right to claim

“damages, losses, liabilities, costs and/or expenses or other relief”.

Heathrow does, of course, retain some rights of its own, and that is entirely proper.

There might be circumstances in the future under some future Government, possibly of a different political persuasion, that did create a contingent liability, and the Government would then be under an obligation to present that to Parliament in the normal way. Heathrow Airport Ltd might, in the exercise of its legal rights, have the ability to sue them in some respect, but that is not touched on by this question.

The statement of principles with which we are dealing is not, in fact, the only document of its kind. There were two other such documents. In October 2016, the Government entered into an agreement on a statement of principles with Heathrow Airport Ltd, as we have discussed, but versions of the same document were also agreed with the promoters of the other shortlisted schemes, Gatwick Airport Ltd and Heathrow Hub Ltd. Those, of course, fell away when the Government recommended the Heathrow north-west runway as the preferred scheme. This is not a one-off deal or any kind of special arrangement with Heathrow itself.

[Karl Turner (Kingston upon Hull East) (Lab)]

I congratulate the right hon. Member for Putney (Justine Greening) on securing the urgent question. This appears to be a devastating revelation, and it is beyond belief that when such a bombshell has landed, the Secretary of State is not here to respond.

Yesterday, the Prime Minister said:

“The statement of principles… does not give Heathrow Airport Ltd the right to claim any costs or losses from the Government should its scheme not proceed.”—[Official Report, 6 June 2018; Vol. 642, c. 304.]

That does not seem to be accurate.

Can the Minister explain why a statement of principles was entered into between the Department and Heathrow Airport Ltd that clearly states, at paragraph 2.1.6, that

“HAL reserves its rights (including but not limited to its rights to pursue any and all legal and equitable remedies (including cost recovery) available to it under law) in the event of…an alternative scheme being preferred by the Secretary of State or…the withdrawal of the Government’s support for aviation expansion for Heathrow Airport”?

Does he not see that this is a massive revelation of the utmost importance? Given all the opportunities the Government have had to bring it to the attention of the House and come clean, why has this statement of principles, which effectively indemnifies HAL, been unearthed only at this critical stage? Did they think that no one would spot it?

Why was the statement of principles not included in the national policy statement or the consultation on the NPS? Why was it not disclosed to the Transport Select Committee? Has the Secretary of State secured an unequivocal guarantee from HAL that, in the event of the north-west runway not going ahead, the Government will not indemnify HAL for costs expended in pursuit of the project? Is it not the case that the Government have boxed themselves into a corner by committing HAL to a risk-free investment, while exposing themselves to either massive cost recovery on the part of HAL or crushing litigation before the decision has even been taken?

[Jesse Norman]

Far from this being a bombshell, I am afraid it is the dampest of damp squibs. No indemnification has been given or was ever in question. The Opposition’s position is not a legal position; it is an expression of some other kind. The hon. Gentleman does not seem able to quote any legal authority. I invite him to quote any legal authority for his position. We have the legal authority of leading counsel and a top firm of solicitors supporting our position. The statement was entered into for a very simple reason: to make it absolutely clear, while reserving HAL’s normal rights, that the Secretary of State has an almost unfettered discretion in this area, and rightly so. I would expect the hon. Gentleman, being a taxpayer, to support that position.

--- Later in debate ---

[Jesse Norman]

I could say that I could not possibly comment. But it is right to acknowledge that a future Government might create a liability or contingent liability. That is not ruled out, and there might theoretically be some recourse for HAL as a result of that. One should just be—[Interruption.] That has always been the case, and it is not changed by this proper recognition of the law.

[Karl Turner]

Shocking.

[Mr Speaker]

Order. The day would not be complete without the hon. Member for Kingston upon Hull East (Karl Turner) uttering the word “Shocking” while sitting on the Opposition Front Bench. I am just waiting now for his usual refrain of “It’s a disgrace.”