Airports National Policy Statement

Debate between Luke Pollard and Ruth Cadbury

Thursday 7th June 2018 Westminster Hall

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I rise to speak in support of the report of the Transport Committee, of which I am a member. I will keep my comments brief. I thank my hon. Friend the Member for Nottingham South (Lilian Greenwood) for her leadership of the Committee during this inquiry. I thank all the Clerks and officials who worked so hard in preparing the report. Without their work, it would not be so comprehensive a tome—Members have clearly been wading through it.

I am still reviewing the final national policy statement, which was published earlier this week, so I will confine my remarks to the three areas of concern I majored on in the Committee. The first is surface connectivity. Broadly, my view is, “Yes, but”, but the buts are very important. I do not believe that the NPS sets out a sufficiently ambitious plan for surface connectivity.

During our inquiry, the Government changed their position on western rail access, which I and my hon. Friend the Member for Slough (Mr Dhesi) have been calling for since we entered the House a year ago. The Government’s backtracking and indecisiveness over western rail access is not conducive to getting the result we need for those areas. Especially for people coming from the far south-west, western rail access is absolutely pivotal for a two-runway world, let alone a three-runway world in the future. Building a new rail line from Reading to Heathrow makes good economic and transport sense, and it is hard to find anyone who does not agree with it. That is probably the core reason why it has not happened to date: there is no friction on western rail access to make it an issue that people debate. There is therefore no pressure on Ministers to fund it properly, so it has not happened to date, despite the near-universal agreement about it. That has to be resolved quickly.

Earlier this week, I asked the Secretary of State whether western rail access was fully funded. He replied that he believed that it was. However, I cannot see any pot of money to fund it in CP6; nor can I see the Heathrow contribution being sufficient to fund it; nor does the Secretary of State seem to have squirrelled away an extra pot of money to fund it. I would be grateful if the Minister told us where the fully funded pot of money for western rail access was, because it needs to happen.

I want to see more surface access to Heathrow. At present, the plans barely deal with the challenges of a two-runway world, let alone a three-runway world. That is really important. If we are to believe that the third runway will happen, we need a modal shift to deal with the threats to air pollution and to minimise the car use that we are expecting. That means that we need Ministers and Heathrow Airport Ltd to be more ambitious to achieve the potential of that.

I want to see Heathrow dig further into its pockets to pay for the surface access. I believe that Heathrow has a big pot of money that it should be arm-twisted into spending to improve such access, and that the money is being held back as part of the negotiation strategy, to offset further things during the planning process, especially the development consent order process. That money should clearly be spent on surface access now.

[Ruth Cadbury]

Does my hon. Friend have any faith in Heathrow shifting funding to surface access, given that the airport spent a lot of its money on a legal challenge to the original proposal for what is now called Crossrail or the Elizabeth line in order to protect Heathrow Express, which is not a lot of use in the modern world?

[Luke Pollard]

Heathrow Express is the most expensive rail line in the world in terms of ticket price. There is certainly an incentive to ensure that all surface access will be affordable and accessible. If there is to be a congestion charge around Heathrow, personally I would like more money to be spent on ensuring that every single tube station in west London and throughout the entire network is accessible for disabled people, who will find that a congestion charge makes getting to the airport too expensive in the first place.

The Government need to do much more. Furthermore, the rather odd way in which airports are regulated by the Civil Aviation Authority means that there is no incentive on Heathrow to be more efficient, and that needs to be looked at. I would like to see some of that greater efficiency invested back into surface access—through Great Western, Heathrow Southern, improved bus access, the Piccadilly line upgrade, the Chiltern line, High Speed 2 and Crossrail, as well as much more besides—so that we genuinely achieve the modal shift necessary. Such a shift is essential if we are to deal with concerns about air quality. Casting our mind back a few years to the start of the Davies commission work, air quality was an issue, but not to the extent that it is today. It was not raised with the same ferocity as it would be today, and it did not have the same science and evidence behind it. Greater surface access should alleviate some concerns about air quality, but not all of them. If we get air quality right, we will probably get surface access right, and if we get surface access right, we will probably get air quality right. They go hand in hand.

The NPS and Heathrow’s own air quality plans need strengthening—the Select Committee dealt with that in our report. We only need to look at the NPS’s curiously out of date costs for oxides of nitrogen, or NOx, to understand why that needs to happen urgently. When the Davies commission first looked at airport expansion, air quality was not as big an issue as it is today, which means that we need different measures from those applied in the past.

The prominence of air quality is only going to increase, in west London, Piccadilly and Plymouth, and that is why it is so important for the Government and Heathrow to be bolder. Banning diesel cars by 2040 is a start but, if I am honest, it is a bit of a wet lettuce attempt at ambition. It should happen much sooner, with the target being brought forward, because the vast majority of concerns about air quality around Heathrow are caused by cars accessing the airport and servicing the individuals who work there.

Electric vehicles need to play a much bigger role. I was warmed and heartened to hear Heathrow talk about introducing more airside electric vehicles—the sheer buying power of that airport means that it could create a new market in airside electric vehicles—and I want to see such a plan drawn up. If Heathrow genuinely believes that, it needs to make that plan a core part of how it addresses air quality, and that needs to start with procurement and not just soundbites—it needs big, bold action now.

I also want to talk about airport charges. The expansion will in truth cost a fortune, and it will ultimately be down to passengers to pay for it. At the heart of this is the fact that people who fly from Heathrow will pay for the expansion. Yes, it may be cost-recovered to the airlines, but passengers will pay for the tickets that include the charges. The Secretary of State is broadly right to want no increase in charges, but the regulatory framework of the CAA is not sufficient to ensure that charges are kept low. The Government need to look at that in future, because I suspect that passengers will be paying more and more.

I found much merit in the idea of competition in terminal operation in the new expanded Heathrow—we are talking about not only a new runway but new terminals. To keep costs down at Heathrow, which will be the largest privately funded infrastructure project in the world, the basic tenets of a market economy need to kick in. Competition—not always welcome on my side of the House—for Heathrow, in the private sector, should be looked at. Competition over terminal operation could keep charges low at the airport. That is something that has been pushed not only by Willie Walsh and Surinder Arora but by many others. We need to keep that option on the table throughout the process.

I mentioned earlier the rather odd way in which Heathrow is regulated. The CAA incentivises expensive builds. It simply loads debt on to the regulated asset base, against which Heathrow can then generate profits to cover the borrowing. There is therefore no incentive to be efficient, creative or innovative, or to deliver schemes faster, better and cheaper. That needs to be addressed in the wider scheme, because although it is privately funded, there is a risk to the public sector if such incentives are not brought back in.

The promise made to the regions and nations by Heathrow is important, and must be delivered in the process. That promise must be delivered. Promises made to airports such as Newquay and Exeter in the far south-west must be delivered. If I am honest, I am still a bit curious about how that 15% of aviation can be allocated to regional airports under international law, but I shall leave that one for the Minister and Heathrow to address. However, we must ensure that we are safeguarding not only routes for Exeter and Newquay but future routes for the reopened Plymouth airport—routes from Plymouth to Heathrow would help to make Plymouth airport more viable in future.

Those promises made to the regions and nations of the country will be the bedrock of any vote taken by Members of Parliament in favour of Heathrow. However, my main concern when we were drafting the Select Committee report was whether any scheme would survive a legal challenge—unless the recommendations of the Transport Committee are addressed not only in the NPS element but in the DCO process. In fact, a lot of the detail adopted by the Government but shifted into the DCO process needs to be brought forward into the NPS part to provide certainty for people about what their future holds.