National Policy Statement: Airports

Kwasi Kwarteng Excerpts

Monday 25th June 2018 Commons Chamber

[Andy McDonald]

The hon. Gentleman is listing names from overseas, but how about others—Birmingham, Newcastle, Manchester?

On test 2, we are being asked today to support a significant expansion in UK aviation capacity without a plan from the Government for tackling aviation carbon emissions. The Secretary of State did not even mention climate change in his statement to the House on 5 June.

[Kwasi Kwarteng (Spelthorne) (Con)]

rose—

[Andy McDonald]

I am going to plough on, if the hon. Gentleman does not mind. Plenty of people want to speak. I know he has just walked into the Chamber, but I want to crack on.

The Government have still not set out aviation’s place in the overall strategy for UK emissions reduction, despite their having a legal requirement to do so. According to the Department for Transport’s own projections, this plan for Heathrow expansion will cause the Government to miss their carbon emission limits. The Government argue that they can reduce emissions through technology, but their only proposal is a hypothetical case study by a consultant that contains a disclaimer professing that there is

“significant uncertainty around the results of the study and the conclusions that are drawn”.

That is not a credible position.

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[Andy McDonald]

I am grateful to my hon. Friend for that intervention. He makes a powerful point, which many commentators have identified, about the various economic arguments.

[Kwasi Kwarteng]

rose—

[Andy McDonald]

I will not take any further interventions; it was well timed, but too late.

This Parliament will not know the Government’s plan for keeping UK aviation emissions at or below 2005 levels by 2050 until next year—talk about carts and horses! This scenario, where aviation targets are exceeded, would place an unreasonably large burden on other UK industries. I do not believe it is acceptable or fair to ask other sectors of the economy to make reductions to compensate for aviation emissions. The UK Government call themselves a climate leader, but only last week the EU raised its carbon reduction target to 45% by 2030, which is above that set by the Paris agreement, whereas this week the UK Government support an aviation plan that will increase emissions without a clear plan to reduce them. The revised NPS is simply not consistent with the obligations set out in the Climate Change Act 2008. We are being asked to give the Transport Secretary a blank cheque on the environment. On the issue of climate change, this fails to meet test 2.

Airspace modernisation is vital to the future of this country. Only through modernisation can we improve the structure and management of UK airspace, to handle growth and realise the economic benefits. The process and consultation to make these changes is at an early stage and there are many years ahead, yet airspace modernisation is critical to noise levels at an expanded Heathrow. Once again, we are being asked to accept promises on noise without a broad framework for the future. That is not good enough and this is yet another gaping hole in the Government’s case.

It is difficult to clearly assess the noise impact at Heathrow until the airspace modernisation programme is more advanced. Precise details of new flight paths will not be known for several years, and this represents another significant uncertainty. The Transport Committee’s excellent report called on the Government to set clear noise targets, but in the revised NPS they are not proposing any new targets. Do they really care about noise levels?

The revised NPS states that

“the Secretary of State will consider air quality impacts over the wider area likely to be affected, as well as in the vicinity of the scheme. In order to grant development consent, the Secretary of State will need to be satisfied that, with mitigation, the scheme would be compliant with legal obligations that provide for the protection of human health and the environment.”

That provides no indication as to how the air pollution can be managed. Much of the additional air pollution is largely outside Heathrow’s control. The Government have been repeatedly dragged through the courts over their failure to address the air pollution crisis, so it would be generous to assume that they will now suddenly address these issues in the context of a decision over an expanded Heathrow. That the key issue of tackling air pollution could turn on the judgment of the Transport Secretary does nothing to afford us any comfort whatsoever.

What of the regional economic benefits? The revised NPS says that if the third runway is built, up to 15% of all new routes will need to be reserved for the domestic market. There are considerable uncertainties around that pledge. The Government say that public service obligations will ensure compliance, but “up to 15%” could mean as little as 1%, and PSOs apply to cities rather than airport-specific locations. Late last week, the Government announced they would use PSOs to ensure domestic connectivity. They have not said where they will be used, how many will be used, what percentage of routes will be guaranteed through this method or if they will be permanent. In addition, PSOs would make domestic routes exempt from air passenger duty. That tax cut was not considered in the business case, and the Government have not stated its cost to the public purse. Surely this represents an uncosted subsidy to Heathrow Airport Limited. It is simply incredible that the Government would announce such a subsidy at the eleventh hour before a vote on the NPS.

The Government’s stated case for expanding Heathrow is dependent on a number of other conditions being met, including measures to constrain growth at regional airports in order to ensure that Heathrow expansion can meet the UK’s climate change obligations. I cannot support the restriction of other UK airports to facilitate expansion at Heathrow. Rather than improve regional connectivity, it has been said that a third runway at Heathrow will have a substantially negative impact on the UK aviation industry as a whole. Regional airports will also lose around 17 million passengers per annum, as Heathrow’s share of the UK aviation market rises from 21% today to 27% in 2050.

Government claims for the economic benefit of expanding Heathrow do not include the costs of the improved public transport links needed to keep road traffic at current levels. Transport for London estimates that expenditure of £10 billion to £15 billion is required for new surface access; Heathrow and the Airports Commission say the figure will be closer to £5 billion—so what is the correct figure? The absence of clear proposals, projections and costs in relation to surface access are a major failing of the revised NPS. Labour is not satisfied that the taxpayer interest will be protected. We are also concerned that the lack of a clear surface-access plan will result in yet more transport investment being sucked into the south-east of England. Furthermore, our view is that there are too many uncertainties that could undermine the economic benefits of a third runway at Heathrow. We are not assured that the number of jobs that have been promised will be forthcoming, given the number of variants that could undermine the economic benefits of the case.

For all those reasons, I am not convinced that regional connectivity and shared economic benefits will in fact be delivered by the proposed expansion. I acknowledge the case made for expansion, but I believe that the price of a third runway at Heathrow is currently simply too high. I am greatly aware that right hon. and hon. Members from all parties will wish to weigh up the issues carefully before they cast their vote, and I of course utterly respect the decision that each and every one of them will make. But, given my grave misgivings as to the process itself and the manner in which it has been conducted, I can only conclude that to proceed at this juncture, given all the circumstances, would be the wrong thing to do.

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[Lilian Greenwood]

I confirm that that is the Secretary of State’s view, and I will come on to my concerns about that approach in due course.

On protections for communities, we recommended that compensation be independently assessed and reviewed once the full impacts were known. The Government did not accept this recommendation. On protection for passengers, we recommended a condition of approval in the NPS that passenger charges be held flat in real terms unless not doing so was in their interests. The Government did not accept this recommendation.

[Kwasi Kwarteng]

Will the hon. Lady give way?

[Lilian Greenwood]

No. I am conscious of time.

The Committee did not make a specific recommendation on carbon emissions, but the NPS scheme must be compatible with our climate change obligations. As others have already said, this remains very uncertain. The Government have told us that our recommendations will be dealt with during the development consent order process, in consultation with communities and other stakeholders, but our recommendations were made on the basis that there were not enough safeguards in the DCO process to ensure that high-level policy objectives on noise, air quality, surface access, regional connectivity and costs could be achieved.

The third objective of the Committee’s recommendations was to limit the risk of legal challenge, yet not providing fundamentally important information on possible environmental, health and community impacts seems to be a point on which a judicial review may be focused. Baroness Sugg told us recently that making the meaningful changes to the NPS we sought would add a six to nine-month delay to the process. Given the potential scale of the impacts of this scheme and the decades it has taken to get to this point, a few extra months may seem an appropriate price to pay, especially given the Government’s self-imposed delays since the Airports Commission reported in July 2015.

This is a vital decision about our national infrastructure. Additional runway capacity must be delivered. I do not doubt the Government’s intent, but rather their ability to deliver. Some of my Select Committee colleagues will accept the Government’s assurances, but I intend to be guided by the evidence. I have no doubt that the Government intended their air quality plans to ensure compliance with legal standards, but three times the courts rejected them. I am certain that the Department for Transport intended to electrify 850 miles of railway and to introduce new rail timetables successfully but, as we know, the reality has sometimes fallen short of the ambition. This NPS leaves too many risks: the risk of a successful legal challenge; the risk of harming communities; the risk of rising charges; and the risk of a failure to deliver new domestic connections. If a substantial proportion of the Committee’s recommendations had been incorporated, I would have felt able to vote for the motion. I wish that I could do so but, without them, I am afraid that I cannot.

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[John McDonnell]

It is an obvious point that we have made time and again in the House. We have been pressing for investment in infrastructure for the existing airport, but it has not been forthcoming.

We do not even know what the infrastructure plan is for the area. Last time, the infrastructure plan included a road through my local cemetery. We were meant to disinter the dead to enable access to Heathrow. We have still not seen the infrastructure plans. No wonder my constituents are angry about this. That is the third defining point. Does the House stand up for people and communities, especially working-class communities, or does it stand up to protect the interests of a corporate cartel that has ripped us off for decades? Ask how much—

[Kwasi Kwarteng]

rose—

[John McDonnell]

I would respect the hon. Gentleman, my constituency neighbour, if he accepted a runway in his constituency south of Heathrow, but he refused.

Look at how much corporation tax has been paid by this company over the past 10 years: £24 million. It has been borrowing to pay dividends more than its profit ratios. That is the nature of the company we are dealing with. It is a company and an operation at Heathrow that has lied to my constituents. When it got the fifth terminal, a letter was sent to my constituents. I had meetings with the directors of Heathrow and they were beside me saying, “We will not seek a third runway.” Within 12 months, they were lobbying for one. We were told by a former Conservative Prime Minister, “No ifs, no buts, no third runway”. They never told us that promise was for one Parliament. The existing Prime Minister backed that guarantee to my constituents.

These are the consequences for my constituents that hon. Members need to know: 4,000 homes will go; 8,000 to 10,000 people will be forcibly removed from their community, the biggest forced removal of human beings since the Scottish highland clearances; and a church, a temple, community centres, open spaces and even our hospices are now threatened. That is what it means to my community. Two schools—where will they go? It is no good offering them 125% compensation. You cannot compensate for the loss of your whole community. We have a housing crisis in our area on a scale not seen since the second world war. We cannot house our existing population. Where will they go? Two schools, at least, closed, with another one, most probably, after that. We have not got enough places for our existing pupils. Where will they go? We cannot find sites to build the new schools we currently need.

Those who get forced out might be the lucky ones, because the ones left behind are already breathing in air that is already poisoned above 2010 EU limits. No effective mitigation measures have been demonstrated to us tonight. We know the health consequences—respiratory conditions and cancer—yet the Government have refused to undertake a comprehensive health assessment.

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[Kwasi Kwarteng (Spelthorne) (Con)]

Thank you, Mr Speaker, for calling me in this important debate. I am very pleased to follow the hon. Member for Rotherham (Sarah Champion).

I am also very pleased that the right hon. Member for Hayes and Harlington (John McDonnell) is in his place, because he made a number of remarks about my position on Heathrow expansion. I have always supported Heathrow expansion—that must be said for the record. I find it extraordinary that he, who is supposed to be a bastion—a supporter—of workers’ interests should be turning his back on that and voting down a proposal that will boost jobs in the south-east, particularly in his constituency and mine, to the extent that this proposal does. It is not just me who is saying this—it is also a man called Len McCluskey, that great champion of capitalist interests and the cartels that the right hon. Gentleman talked about. That supporter of cartels would have us believe that Heathrow and the union he represents have shared interests in the expansion. He has said very categorically that it is a step in the right direction.

Heathrow expansion has been debated for 50 years. My right hon. Friend the Member for Putney (Justine Greening) lamented the fact that this debate would last for only four hours. That is completely wrong. We have been debating this issue for 20, 30, 40 years. The hon. Member for Rotherham mentioned the Roskill commission in 1968. I would suggest that that was before half the Members here, certainly those on the Conservative Benches, were even born. It is extraordinary that Britain, of all the advanced economies in the world, should be spending so much time and effort debating building, not an airport, but a single runway in the south-east, which has had no increase in capacity for 50 years. It is a shame, and I am embarrassed, that it has taken us this long, but I am also very grateful and pleased that we finally have a Secretary of State and a Government who have taken this step forward—who have actually had the gumption and the courage to address what is a serious national problem.

The House of Commons should take its head out of the sand, collectively, and look at what is happening outside in the world—look at Dubai and the other hubs that are expanding. As my hon. Friend the Member for Reigate (Crispin Blunt) said, we should look at Incheon airport in South Korea or O’Hare airport in Chicago. These are the rising powers in aviation. As we debate and dance around these pinheads, the rest of the world is expanding, and we have to compete with that expansion. That is why I firmly recommend the Government’s position and will vote in the Aye Lobby tonight.