Airport Capacity

Lord Bilimoria Excerpts

Tuesday 25th October 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

First, I agree on the noble Lord’s final point. As technology moves forward, it is important that manufacturers look at this issue. With the additional runway, the issue of respite for residents will improve. As for infrastructure and transport infrastructure, I totally agree with him. Just to clarify the point, when I talked about the market value, I was referring to the unblighted value—so it would be the market value as would exist in an unblighted form, not on the basis that this is near to the airport, in reflection of the challenges that certain people will face who will be subject to compulsory order. So it is the unblighted value, plus 25%.

[Lord Bilimoria (CB)]

My Lords—

[Baroness Tonge (Ind LD)]

My Lords—

[Lord Young of Cookham (Con)]

I think it is the turn of the Cross Benches.

[Lord Bilimoria]

My Lords, it has taken a year since Howard Davies’s report for the Government to make this decision and we all know why it was delayed. Congratulations to the Government on making this decision at long last: business has been crying out for it. However, the Minister himself has just said that this project is going to be completed “up to 2030”—13 or 14 years from now. Other countries are building runways in a few years and many runways at a time. We want to invest in infrastructure: do this Government have the guts to do so? Let us look at the obstacles ahead: Zac Goldsmith has said that this is a,

“millstone around the Government’s neck”,

and that the plan is “doomed”. Our Foreign Secretary has said that it is “undeliverable” and that he sees,

“an inevitable fight in the courts and I think the chances of success for the proponents of the third runway are not high”.

Justine Greening, the Education Secretary, is opposed to Heathrow expansion. Even the Mayor of London, Sadiq Khan, has expressed his anger about the decision. Our Prime Minister expressed her opposition to Heathrow in 2009. With all of business crying out for this to happen but all this opposition, there is going to be a lot of resistance to it. As my noble friend said earlier, why did the Government not go ahead and allow Gatwick and Heathrow to expand? Does the Minister not agree that a Gatwick expansion could go ahead straightaway? Heathrow would happen sequentially thereafter, I hope.

Finally, what about employment? The Government have estimated that there will be up to 200,000 extra jobs—over £200 billion created in the economy. Where are those people going to come from? We have the highest level of employment and the lowest level of unemployment and we are reliant on 3 million people from the European Union working over here. Will people from the European Union be allowed to work on these airport expansion projects, because they will be needed?

[Lord Ahmad of Wimbledon]

I thank the noble Lord for his welcome of the decision. I am sure he will understand if, in the interests of time, I write to him on his specific questions. I underline that we are committed to ensuring that we make difficult choices. He used the example of my right honourable friend the Prime Minister. She herself chaired the sub-committee meeting which made this decision today. That perhaps underlines her commitment to making tough calls in the best interests of the nation. As to the Government’s commitment to infrastructure, do I need to say more than HS2—£55 billion for regional rail connectivity to ensure that all our regions are serviced in the best way possible? We are also investing in Crossrail, the biggest infrastructure project in Europe. Other countries are now looking towards the United Kingdom to ask, “How did you do it?”. This is how UK plc, under this Conservative Government, is delivering on infrastructure for our country: we are committed to it. I will respond to the noble Lord on his specific issues, but extra capacity means more investment, more companies, more air slots, and more airlines looking to expand. That does mean more jobs.