Airport Expansion: Economic and Environmental Impact

Lord Goldsmith of Richmond Park Excerpts

Wednesday 25th October 2017 Westminster Hall

[Ruth Cadbury]

My hon. Friend is right, and I shall come on to that point: expanding Heathrow appears to reduce demand and the ability for regional airport growth, rather than enhance it, as Heathrow airport keeps saying.

To return to comparisons between Heathrow and Gatwick, the Department for Transport states that,

“taken over the whole 60 year period, the Gatwick scheme could lead to greater monetised net public value”

when looking only at passenger benefits in terms of reduced fares, fewer delays and better services. Such conclusions do not shout to me that Heathrow is the better option for the country and passengers.

On the cost of surface access, increasing flights by about 47% will of course increase traffic and transport pressure on an airport whose roads and public transport are congested most of the time. That in itself is an economic cost to the local economy and a commercial cost to the airport and airlines. Improvements to public transport should shift a higher proportion of the new passengers on to rail, but many of the improvements, such as southern and western rail access, which are not even funded yet, are needed now for the smooth running of a major two-runway international airport and its hinterland. The imminent upgrade of the Piccadilly line and the creation of Crossrail were designed, according to Transport for London, to support an increased population in west London and beyond—not a third runway. I have seen no assessment of the additional pressure on the roads from freight and flight-servicing vehicles, which cannot, of course, transfer to rail. I have raised that point in the Chamber several times, and have not had an answer.

[Zac Goldsmith (Richmond Park) (Con)]

The hon. Lady is making an excellent speech, which hits exactly the right note. On the point about public infrastructure, TfL put the cost at about £18 billion. It may be less than that, but it is up to £18 billion. The Government have ruled out paying for any of it. Heathrow has promised to contribute up to £1 billion, and TfL could not pay even if it wanted to, because it is not within its budget. Does the hon. Lady share my hope that the Minister will address the issue of who will pay for the public infrastructure improvement?

[Ruth Cadbury]

The hon. Gentleman, who represents a constituency neighbouring mine, is right and has anticipated my point. The cost of improvements to surface access is disputed, with estimates ranging from just over £1 billion from Heathrow airport to £3.5 billion from the Department for Transport, and £18 billion from Transport for London. Of course, we have no commitment at all from the Government to fund anything that Heathrow airport is not prepared to pay for itself. As Heathrow airport has publicly agreed to commit only £1 billion, there is significant concern that the taxpayer would be left picking up the shortfall if the third runway were to go ahead. Any such contribution from the public sector would further reduce the available capital for investment in infrastructure projects outside London and the south-east, which fellow MPs from the north, Scotland and the south-west continually raise in Parliament.