Revised Draft Airports National Policy Statement

Lord McKenzie of Luton Excerpts

Thursday 15th March 2018 Lords Chamber

[Lord McKenzie of Luton (Lab)]

My Lords, I thank the noble Baroness for introducing the debate and for her explanation of the NPS. I welcome the debate to range over the revised draft airports National Policy Statement and the issues it raises.

I agree with the analysis of the importance of aviation to the UK economy and the need for new airport capacity. Heathrow is the busiest two-runway airport in the world. While declaring my support for Heathrow expansion, subject to safeguards, I am mindful of the perspective of London Luton Airport—a major contributor to aviation provision in the south-east—which is also reaching capacity as currently configured. I hope noble Lords will forgive me if I divert to another airport from time to time. I draw attention to my interest in the register as an advisory member of the board of London Luton Airport, a council company that owns the airport assets.

By way of history, Luton Airport was originally run as a committee of Luton Borough Council but was required to transfer its undertaking into a separate company by the Airports Act 1986—the handiwork, I believe, of the noble Lord, Lord Spicer. This was at the same time as the British Airports Authority was required to restructure into a main holding company with seven separate operating companies: Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Aberdeen and Southampton. Along the way, the Scottish airports were privatised and the BAA, which subsequently had to divest itself of Gatwick, Stansted and Edinburgh, was sold to Ferrovial.

London Luton—progressively known as Luton International and then London Luton Airport—travelled a different path to ownership and development from most airports when Luton Council entered into a public-private partnership through its wholly owned company with a third-party consortium. The airport has, perhaps unusually, enjoyed considerable support from its local community. Indeed, a local election was lost by the party which sought to privatise the airport, for a derisory sum, and which has never since—at least so far—regained control of the council.

In common with much else we debate at present, we should be mindful of the impact of Brexit on aviation and therefore airports policy. The liberalisation of air transport, with the ability of carriers to fly wholly within and wholly between other EU states and between a base and any other EU airports, has had a significant beneficial effect, added to by the advent of low-cost, short-haul flights across Europe and the growth of such airlines as easyJet and Ryanair.

There is clearly an imperative for the Government to negotiate continuing access to this liberalised regime on one basis or another, ranging from staying in the European common aviation area, a UK open skies deal with Europe or a single bilateral agreement with the EU. The issues of access to airspace and the implications for airfares, as well as safety regulation, also need to be resolved. Assuming that Brexit becomes a reality, we would argue strongly for our staying in the European common aviation area and remaining in the European Aviation Safety Agency. My initial questions to the Minister are: what progress is being made on all of this and what are the expected outcomes; and to what extent have these issues—or any of them—been taken into account in passenger number predictions, especially for Heathrow?

We should recognise that Conservative policy on the expansion of Heathrow has flip-flopped in recent times. Before the 2010 general election the party was opposed to a third runway and a sixth terminal at Heathrow. Its 2010 manifesto referred to stopping the third runway and linking Heathrow directly to the high-speed rail network. The coalition Government talked of cancelling the third runway at Heathrow, and the owners of Heathrow announced that they would abandon plans for a third runway. However, concerned lobbying persuaded the Government to look again, thankfully, hence the long-grass device of the Airports Commission.

Initially, the Government announced that they accepted the case put by the commission for more capacity in the south-east but had not decided where. Eventually, on 25 October 2016, after being pressed by constant questioning in Parliament—noble Lords will remember those exchanges in this House—the Secretary of State announced that the Government would support a third runway at Heathrow and bring forward a draft NPS. All in all, this is a disgraceful example of how the vital infrastructure needs of our country should not be handled. Political considerations were to the fore, as capacity at our most important airport was squeezed. The commission eventually unanimously recommended a new north-west runway at Heathrow combined with a significant package of measures to address environmental concerns. In making this decision, it gave weight to economic and employment benefits, as we heard: long-haul flights and connections; domestic connectivity; lower fares; surface access links; and support for freight. I support the strength of the position it has taken.

The consultation process at various stages has become a bit convoluted. In February 2017 the Government produced a draft airport National Policy Statement for a 16-week consultation. However, following their commitment to update their evidence base on airport capacity and their air quality plan, they then produced a revised draft airports National Policy Statement for yet further consultation. This sits along a range of other documents, including the Aviation Policy Framework and UK airspace policy. The Government have also announced the setting up of an Independent Commission on Civil Aviation Noise.

Can the Minister tell us where these further consultations leave the timetable for expansion at Heathrow and whether they expect any further adjustments to the NPS because of data changes? When might we expect the final airports National Policy Statement to be laid before Parliament, and will it be subject to a vote in both Houses? I think the answer already given to that is yes. Can the Minister summarise for us the key differences in those two consultation outcomes?

So far as the airports policy framework is concerned, it is important that we recognise that there is no one-size-fits-all and that the unique position of each airport is considered on its merits. Indeed, that is what the NPS does fairly. It is also important that the DfT understands the need to support the growth plans of other airports in the period before a new runway at Heathrow is delivered and that it recognises the contribution that these can make to capacity requirements —I speak particularly of London Luton Airport. I believe we can be reassured that Luton’s plans—which I will outline—are consistent with the development of Heathrow, but is this the view of the DfT and the Government?

London Luton Airport plays a vital role in the local and sub-regional economies, as well as contributing to the national aviation strategy. It is the fifth-busiest and one of the fastest-growing airports in the UK, and estimated to provide 22,000 jobs and £1.4 billion to local GDP by 2030. It plays a different role and serves different markets from Heathrow in the aviation sector. Its expansion can develop runway capacity and meet the specific needs of its catchment area—which of course includes London—for short-haul, point-to-point journeys. It supports the government aviation strategy in agreeing that more intensive use can be made of existing airport capacity, alongside the provision of a new runway at Heathrow. It looks to the Government to support its ambition.

At present, its passenger capacity planning permission is set at 18 million passengers per year from 2014, which was expected to be sufficient to meet demand through to 2026-27. There is a £160-million redevelopment programme to create this capacity. However, that capacity is expected to be fully utilised by 2020-21, so the focus is now on looking to maximise use of the existing runway and to maximise the benefit for the local and sub-regional economy, consistent always with managing the environmental impacts in a responsible and sustainable way. The assessment is a possible capacity of 36 to 38 MPPA, or 240,000 aircraft movements per year, with no new runway.

In their call for evidence on its aviation strategy the Government acknowledged the importance of surface access to airports and the need to link road, rail and air. A new £220-million fixed-rail link between Luton Airport Parkway—funded by Luton Borough Council—and the airport terminal will be a significant improvement on the current bus link. But transport links could be improved if the DfT were to stipulate that four fast trains per hour should call at Luton Airport Parkway as part of the base specification for the new east midlands rail franchise. Consultants have analysed that this would add minimal time to the semi-fast Nottingham services each hour, take some 70,000 car journeys off the road and save some 500 tonnes of CO₂. It would create an integrated transport hub as conceived in the NPS and the aviation strategy. I am aware that this matter has been raised before, and perhaps the Minister can tell us whether any progress has been made.

We readily recognise the importance of the aviation sector in our economy, which directly supports some 230,000 jobs and contributes £20 billion per year. We further recognise that the opportunity to deliver the potential for the sector is being affected by capacity constraints at some airports, and Heathrow is the premier example. The Minister will be aware of the controversy engendered by the Government’s upping of the expected contribution of an expanded Heathrow to £74 billion over the 60-year period, and that the NPS shows this below the contribution which could come from Gatwick expansion over the longer term. Perhaps the Minister will comment on that point.

Decisions to expand airports properly involve delicate assessments of the environmental and community impacts of new build, especially runways. That is why my party has rightly laid out the four tests to be met for Heathrow, covering: how the increased capacity will be met; the need to reduce CO₂ emissions from aircraft to help us meet our legal climate change obligations; the effective management of noise and environmental impacts; and the need for the benefits of expansion to be shared.

As part of the appraisal of sustainability for the north-west runway scheme, it is noted that there are a range of mitigating or supporting measures, which the Minister mentioned, to enhance the positives and mitigate the negative impacts of a proposal. There is reference to the growth of greenhouse gas emissions, but there is little detail other than that the promoter has put forward a number of commitments, which the Government expect to be honoured. This is a bit thin. Perhaps the Minister can say more in his reply. He dealt with the issue of a package to address the problems of noise.

There is a need to make progress at Heathrow as it heads for full capacity. There is also the need to press ahead with expansion at Luton as it approaches the current 18 mppa planning constraint.