Aviation

Lord Goldsmith of Richmond Park Excerpts

Wednesday 4th July 2012 Westminster Hall

[Zac Goldsmith (Richmond Park) (Con)]

Does the hon. Gentleman agree that some of the problems that he has just described result not from lack of capacity but from poor prioritisation? Hundreds of flights every day to and from Heathrow involve places that do not in any way contribute to Heathrow’s hub status. We have short-haul flights, flights to Malaga and 15 flights a day to Cyprus. Such point-to-point flights could happen at any other airport. We have masses of spare capacity, but it is not all at Heathrow. If that is the problem, surely the priority is to make better use of existing capacity and to get rid of some of those pointless flights that could easily happen elsewhere.

[Graham Stringer]

I always find that a particularly difficult argument to be put by Conservatives, who suddenly want to plan routes and move away from a completely deregulated market in Europe—apart from where it is constrained by slots. Having argued ideologically for that position, all of a sudden they want to tell aeroplanes that they can only go from Manchester and Leeds and not from London. I do not believe that that is the Conservative party’s position at all. Even if we put up the price of slots, which has been kept artificially low by how slots are regulated, we would not necessarily get the flights going to the right parts of the world that will benefit this economy. We would get even more flights going to New York and the west coast of the United States because those are the most profitable routes from this country in the short term. The two cheap slots would not solve the problem because the central issue is lack of capacity.

I have a few more facts from the London chambers of commerce that represent the views of 350 business leaders from the BRIC countries: 92% made the general point about the importance of direct flights; 67% said that they were more likely to do business in a place if there were direct flights to it; and 62% said that they would only invest in an area if there were direct flights between the city in the country in which they were operating and the city in which they were likely to invest. Such flights to Brazil, Russia and China are limited.

I wanted to talk about the damage that air passenger duty is doing to regional airports, but I do not think that there is time because of the number of Members who wish to contribute to this debate. None the less, such duty is doing damage and the Government really need to change their policy. Twenty-two of our competitor countries in the EU have no air passenger duty whatever, so imposing a duty is a ridiculous anti-competitive position for this country to take.

I want to talk a little about how we use capacity in the regional airports. It is not possible to, as the hon. Members for Rochester and Strood and for Richmond Park (Zac Goldsmith) suggested, somehow move flights about, but there is no reason whatever why we could not have a completely open skies policy in the regional airports. There is 15 times more capacity in our regional airports than would be provided by one extra runway at Heathrow. It would be against the law to direct flights within Europe to that runway; that simply could not happen. At the moment, airlines are reluctant to make use of the partial open skies policy in relation to major regional airports with fifth freedom rights, but the Government must agree that, and sometimes there are difficulties. Airlines, which have a real interest in getting into Heathrow, are suspicious that if they use the facility of partially open skies in the regional airports they will be kept out in any future negotiations to get into Heathrow. Having a completely open skies policy in the regions, however, might shift out one or two intercontinental routes. It will not change the whole structure of aviation, but it will help.

Finally, the central point of the Government’s policy, especially the Liberal Democrat part, seems to be that constraining capacity in the south-east will help the environment and not damage the economy. I hope that I have shown that that constraint in the south-east is already damaging our economic competitiveness, and the answer to that is to build extra runways and not a new airport. It is worth saying, and it has been said before, that our policy is damaging not only our economy, as we are, in effect, helping other hubs in France, Germany, Denmark, Spain and Holland to do better, but our environment. When planes take off from the United Kingdom, taking passengers to airports such as Schiphol to pick up intercontinental flights, they are putting more nitrous oxide, sulphur oxides and carbon dioxide into the atmosphere than would otherwise be the case. Although the whole aviation debate needs to be opened up, the solutions have been known for a long time, and the Government have had their head in the sand for their whole time in office.

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[Mrs Villiers]

Naturally, trade agreements on aviation between different countries provide mutual benefits. Liberalisation and expanding the range of airlines that can serve routes between the UK and other countries can provide real benefits economically and for passengers. We seek mutuality in these agreements, but we are also prepared to consider a more open approach for regional airports along the lines proposed by the hon. Member for Blackley and Broughton (Graham Stringer).

It is true that Heathrow is pretty much full, and Gatwick, too, is starting to fill up. However, it is simply not true to claim that London’s connectivity is falling off a cliff-edge. We are taking action right now to make our airports better, as well as preparing for the longer-term challenges of capacity in the south-east. We are reforming the way aviation security is delivered to make it more passenger-friendly and cost-efficient. We are trialling a set of operational freedoms at Heathrow, which we hope will make the airport more resilient and reliable. However, we will carefully have to assess their environmental impact. We are finally making progress on the single European sky, which has the potential to cut fuel-burn, improve punctuality, address noise and increase capacity.

[Zac Goldsmith]

Will the Minister give way?

[Mrs Villiers]

I am sorry, but I do not have time. If I have time at the end, I will give way.

We have an extensive programme of surface access improvements under way. Hon. Friends were right to raise that as being important for our aviation competitiveness. Manchester is getting a new Metrolink extension and will benefit from Northern Hub improvements. Gatwick station is getting a major upgrade; Thameslink will benefit Gatwick and Luton; Luton is getting improved access from the M1; and tunnelling has started on Crossrail. That project will ultimately see Heathrow connected to the City and Canary Wharf by train directly for the first time.

In the longer term, High Speed 2 will provide greatly improved surface access to Heathrow and Birmingham. As my hon. Friend the Member for Amber Valley (Nigel Mills) mentioned, that is a real game-changer, bringing Birmingham within easy travelling distance of many more people across the country. Of course, our HS2 plans will also provide an attractive rail alternative to thousands of short-haul flights coming into our south-east airports. That will potentially free up even more space for the long-haul destinations that hon. Members have rightly identified as crucial to our economic success.

However, good government is about not only tackling the problems of today, but preparing for the future. That is why the Chancellor announced in last year’s autumn statement that we would explore the options for maintaining the UK’s aviation hub status, with the exception of a third runway at Heathrow. The coalition is clear that it does not support a third runway at Heathrow. The airport is unique in Europe, in terms of the magnitude of its noise impact on densely populated areas. Thousands live daily with a plane overhead every 90 seconds, and have more planes that wake them up at 4.30 in the morning. The quality-of-life impact of a third runway and up to 220,000 more flights over London every year would be massive, and there is no technological solution in sight to ensure that planes become quiet enough quickly enough to make that burden in any way tolerable. We do not support mixed mode, which would see the end of the much-valued respite period that means so much to those who live with Heathrow noise daily.

We need a better solution. Last year, we kicked off the process of deciding what that will be, with the publication of our scoping document on aviation. The 600 or so responses we received are being used to prepare our draft aviation policy framework consultation, which will be published shortly. We plan to adopt the final framework in March next year, as set out in our business plan. It will set out the overarching economic and environmental framework within which we want to see aviation grow. We also intend to issue an open call for evidence on maintaining the UK’s international aviation connectivity. We will fully consider all representations to that consultation. The shadow Minister, the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), wants us to go faster, but had no ideas whatever to share in today’s debate.

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[Mrs Villiers]

The consultation will be published shortly. The decision is a crucial one that requires objective, thorough and evidence-based analysis of our connectivity needs and how best to meet them in a sustainable way. We do not want to make the mistake that the previous Government made of coming up with the wrong solution and seeking to reverse-engineer the evidence. Put simply, that landed them in court and ensured that they failed to deliver any new capacity. We need to get this right. We need to base our decisions on the evidence, and on a process that allows the communities affected by any of the options fully to take part and ensure that their voice is heard.

[Zac Goldsmith]

Can my right hon. Friend tell us what work her Department has done on considering the viability of maintaining two hubs rather than one? We have today heard a lot of statements from Members, but no evidence at all, that we must have a single hub. Has her Department looked at that question, and are there any data she can share with us?

[Mrs Villiers]

Certainly the debate that will be triggered by our call for evidence will look at a range of options, including how a hub can interact with highly successful point-to-point airports, and will consider connections between our airports to see if they can provide a way to improve and enhance our connectivity. Those are the sorts of ideas we have already been looking at, because they were proposed in response to our scoping document, and they will provide an important basis for future debate over the next few months on how we maintain London’s and the UK’s top-class connectivity.