Airport Expansion: East Anglia

Robert Goodwill Excerpts

Tuesday 12th January 2016 Westminster Hall

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

Mr Pritchard, it is a pleasure to serve under your chairmanship for, like some other Members here, the first time. I congratulate the right hon. Member for Saffron Walden (Sir Alan Haselhurst) on securing the debate.

I will outline some of the Scottish National party’s views before I sum up. On the ongoing debate between Gatwick and Heathrow, the SNP has been fairly agnostic on airport expansion and the choice of location. Our main proposal would be to secure two-way benefits and sustainable connectivity between Scotland and our global markers. We need assurance that we can enjoy sustainable access to the hub airports that serve Scotland. Clearly, some of the final decisions to be made—the costly and large infrastructure decisions—affect many billions of pounds in commercial activity. Like the right hon. Member for East Ham (Stephen Timms), we are particularly disappointed that it seems to have turned into a bit of a bunfight for political advantage. A quick decision on airport capacity is needed. There is a risk attached: if the decision is further delayed, it is to the detriment of all concerned. We cannot allow the machinations of the Landon mayoral elections to get in the way—that point was clearly made by the right hon. Gentleman.

The right hon. Member for Saffron Walden has made a good case that his local airport is successfully managed. He mentioned the number of apprenticeships and jobs that were created by the airport and the increase in passenger traffic. It is also vital to recognise that where we have a successful airport such as Stansted, we do see a clustering of high-quality businesses. Again, for the long-term sustainability of the economy, these are extremely valid and good reasons to have airport expansion across the UK. However, he made the point that if such expansion was to take place, connectivity to such airports, particularly rail links, would be vital.

I cannot comment on the scandal of the A20, as the right hon. Gentleman called it; I think he was going back 38 years. I might not be chronologically challenged on that one, but I am geographically challenged, because I am not fully aware of where the A20 either starts or goes to. I am sure that is something we can discuss at a later stage.

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

The hon. Gentleman need not be too embarrassed. It is a devolved matter, so I do not expect to know all the road numbers in Scotland, either.

[Douglas Chapman]

I take that on board.

The right hon. Member for Saffron Walden mentioned that the rail infrastructure around his airport is not nearly as good as the rail infrastructure around Heathrow and Gatwick. As a Scottish MP, all I can say is, “Welcome to the club.” We have to deal with that daily.

I will quickly address the comments of the right hon. Member for East Ham. Obviously, there is the issue of the Stratford link and ensuring that people in his constituency can gain employment by making it an easy move for them. There is also the promotion of London City airport. The right hon. Member for Saffron Walden will already be aware that, as soon as such a debate comes up, we get people from all over the country saying, “Our airport should be the one that is favoured,” or “Our part of the country should be favoured,” and supporting various airports that are close to their heart.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

It is a great pleasure to serve under your chairmanship, Mr Pritchard. I congratulate my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) on securing this debate. I enjoyed his recap of the history of Stansted; I do not think I grimaced even once. He talked eloquently about the importance of airports not only for the Anglian region but for maintaining the UK’s air connectivity and for jobs and economic regeneration across the country. I therefore welcome the opportunity to respond to the debate on behalf of the Government.

I hope my right hon. Friend will be encouraged that we all have the same interests at heart. I acknowledge his specific points about the continued and future importance of Stansted airport. Indeed, I have visited some of the facilities with him to see them at first hand. I made a point of travelling there by train, so that I could experience that journey myself. When I visit airports, I try to travel in the same way as members of the public in order to experience the whole journey that they would cope with in some cases or enjoy in others.

As my right hon. Friend mentioned, Stansted is one of the largest employers in his constituency, employing 11,500 people on site across 200-plus companies. It provides significant economic benefits not only locally but to the wider Anglian region by supporting the globally competitive high-tech and biomedical industries, not least in the constituency of the hon. Member for Cambridge (Daniel Zeichner), who speaks for the Opposition.

This is a timely debate, given the Government’s recent announcement on airport expansion in the south-east. The Airports Commission set out a convincing case for new runway capacity in the south-east by 2030, which the Government have accepted. We also accepted the commission’s final shortlist of three schemes. It is vital that we get the decision right so that it will benefit future generations, which is why we will consider further the environmental impacts and continue to develop the best possible package of measures to mitigate the impact on local people and the environment.

[Mr Jackson]

Mr Pritchard, I was remiss earlier in not saying what a delight it is to serve under your chairmanship. Does my hon. Friend agree that, in terms of sustainability, it is also important to concede that even during the 10 years that we have been in the House, aircraft have become cleaner and quieter? There have been big technological changes in the development of aviation fuel, for instance. The aircraft industry and airlines are much more sustainable than they have ever been.

[Mr Goodwill]

My hon. Friend is absolutely right that aircraft have become much quieter. Each generation of new aircraft is quieter than the previous one. Of course, the problem with aviation tends to be the very long life of aircraft. Cars might have a 10, 12 or 15-year turnaround, but many 25-year-old aircraft are still flying. Turnaround happens more slowly in the aviation sector, but it is good news that both Boeing and Airbus have thick order books and that companies such as easyJet, which is based in Luton, are buying new aircraft. We heard that, at London City airport, new Embraer aircraft are providing quieter and cleaner journeys.

Of course, air quality around airports is not just about aircraft. In some cases, it is mainly about other sources of pollution, particularly NOx from traffic. I need not remind Members of the problems that we experienced last year with vehicles that did not come up to the emissions standards that might have been expected from the lab tests. That is one factor that we must consider to see how we can improve air quality in areas, particularly London, where air pollution has not decreased as much as we would have expected based on the replacement of old vehicles with new vehicles that perform to Euro 6 standards.

Crucially, the timetable set out by the Airports Commission for delivering additional capacity to the south-east by 2030 will not alter. My right hon. Friend the Member for Saffron Walden will, I am sure, appreciate the importance of airports for businesses and residents in the Anglian region. This debate has shown that it is not just larger airports such as Stansted and Luton that are important to the Anglian region; some of our small airports also play a key role in supporting the economic growth of the regions that they serve. The Government have always made it clear that regional airports make a vital contribution to the growth of regional and local economies as a way to provide convenience and travel choice for air passengers.

[Kelvin Hopkins]

Has the Minister, or have the Government, been lobbied by a group that seems to make a reasonable case for expanding all the airports as a better way forward than an extra runway at Heathrow? I leave it with him; I have not definitely made up my mind one way or the other, but there seems to be a case.

[Mr Christopher Chope in the Chair]

[Mr Goodwill]

Virtually every airport that I have visited around the country shows increased passenger numbers and investment, both by the airports themselves and by the airlines that use them. I support the growth of regional airports. It is all about choice. We have a fantastic opportunity in this country to provide more choice, aside from the arguments that we will revisit later this year about the main decision on airport capacity at either Gatwick or Heathrow.

The smaller regional airports help to encourage investment and exports. They provide valuable local jobs and fuel opportunities for the economic rebalancing of their wider region or area. In the 2013 aviation policy framework, we emphasised the importance of regional airports for the availability of direct air services. Indeed, I prefer to call them local international airports rather than regional airports, because if someone lives in a region their local airport is their international airport.

Flights from those airports help to reduce the need for air passengers and air freight to travel long distances to reach larger UK airports. The Civil Aviation Authority’s statistics for 2014 show that the UK’s regional airports handled 92 million passengers, which was about 39% of the UK’s total. That underlines the point that the hon. Member for Luton North (Kelvin Hopkins) made about the importance of regional airports. Services from UK regional airports operated to more than 100 domestic and international destinations.

It is heartening to see that many of the airports that were impacted by the economic downturn a few years ago are now seeing real growth again, like the rest of our economy, and we want to see that growth continue. We warmly welcome the ambition of the UK’s airports. They are responding to local and regional demands by investing in their infrastructure to enable services to more destinations, better facilities and more choice for their passengers. That is particularly true for airports in the Anglian region.

At Stansted airport, passengers are seeing the benefits of a £260 million investment programme. That funding is transforming the airport and the passenger experience, with a terminal upgrade, improved security and immigration areas and investment in car parking facilities. It is not just the passengers who are benefiting from that investment. The airport has recently invested half a million pounds in a new education centre for five to 18-year olds to create an inspirational airport-themed learning environment for the local communities. That will encourage the next generation to consider jobs in the aviation industry. Indeed, I was pleased to hear about similar work being done at London City airport.

At Luton airport, a £100 million investment programme is seeing expansion of the existing terminal, investment in the latest security scanning technology and improvements to the airport’s forecourt.

Southend airport did not get much of a mention today, which I was a bit disappointed about. However, I will visit it in two weeks’ time. Substantial redevelopment of the airport has seen a new control tower, a dedicated rail station, improved terminal facilities and a runway extension. The Secretary of State for Transport had the pleasure of opening the new £10 million extended passenger terminal back in April 2014. Private sector investment at Southend airport has also meant the dedicated railway station being opened, providing direct rail links to the airport for passengers travelling on the line between Southend Victoria and London Liverpool Street.

We have heard from almost everyone who has contributed today that good surface access links to our airports are essential, because getting to and from an airport as quickly and easily as possible is vital for passengers. Also in Southend, investment by the Government is seeing improvements to routes in and around the town, including those to the airport. More than £38 million of funding has being provided through the local pinch point fund and local growth fund. In addition, funding secured by the South East local enterprise partnership will see further expansion of the Southend airport site to create a business park, commercial developments and jobs.

The Government’s plans for the first road period, from 2015 to 2020, include investments that will improve access to many of England’s major airports. For Stansted, that will include a technology upgrade on the M11 between junctions 8 and 14—incident detection improvements, automatic signalling, variable messaging signs and CCTV cameras will all benefit those travelling to Stansted airport. Further improvements are scheduled for passengers travelling to Stansted by rail.

Between 2014 and 2019, which is control period 5, Network Rail will deliver the construction of a third track between Tottenham Hale and Angel Road and power supply improvements on the line, along with a new station at Cambridge science park. Those changes will benefit passengers from the rest of the Anglian region and from London who travel by rail to Stansted.

I am well aware that my right hon. Friend the Member for Saffron Walden chairs the West Anglia taskforce, which I understand is looking at ways of improving rail connections between London Liverpool Street, north-east London, Cambridge and Stansted airport. We look forward to seeing the taskforce’s findings when they are presented later this year. During the debate today and on other occasions—often over breakfast—my right hon. Friend has made his own position on the issue more than clear.

At Luton airport, we have funded improvements connecting the M1 spur to the wider motorway network, improving access to the airport and helping to reduce congestion. The South East LEP has also secured more than £21 million of funding to improve road access for passengers and planned development around Luton airport. By the way, we will also consider the recommendations set out in the Transport Committee’s study of surface access to airports when they are published later this year. I was pleased to be able to give evidence to that Committee.

[Stephen Timms]

Given the Minister’s remarks, does he recognise the potential benefit of the expansion that is proposed at London City airport? Of course, that expansion is now subject to a planning appeal procedure, but it is a potentially worthwhile and significant addition to airport capacity for London, the south-east and the Anglian region, which could be delivered quite quickly.

[Mr Goodwill]

I thank the right hon. Gentleman for making that point. I will be very careful about what I say in the light of the planning inquiry that is scheduled to take place in March. As he mentioned, the Secretaries of State for Transport and for Communities and Local Government will make the final determination on the application, so it would not be appropriate for me to comment. I very much enjoy using that particular airport. Indeed, I timed myself passing through security the last time I used the airport. It took just four minutes, which is just what members of the business community want. They want to arrive very late at the airport but still get on the flight, although I am not sure that the airport management would suggest that as a strategy.

Within the UK, airlines operate in a competitive and commercial environment, and we consider that they are best placed to determine which routes they operate and from which airports. We know that the commercial aviation market brings many benefits to air passengers. However, the Government also recognise that aviation plays an important role in connecting regions, so there may be occasions when aid is necessary to develop air services to airports where local economic conditions prove unattractive to airlines. However, we are conscious of the risk of competition being distorted by Government intervention in the commercial market. That is why we have been careful in balancing the commercial imperative with the need to provide support for new air routes from our smaller airports.

The Chancellor announced in November that 11 new air routes from smaller UK airports would be supported, with about £7 million of start-up aid over the next three financial years. Those routes—two of which are from Norwich airport and one from Southend airport—will begin operating from this spring, and they will provide domestic links between England, Scotland and Northern Ireland, as well as international connectivity to France, Germany, the Netherlands and Ireland.

[Mr Jackson]

The Minister is being generous in giving way. Will he undertake to continue to monitor the fiscal impact of air passenger duty, including on the growth of regional airports and on potential new long-haul routes? APD is an important issue, although it does not lie within his remit.

--- Later in debate ---

[Mr Goodwill]

Yes, I almost say without thinking that that is a Treasury matter. However, as my hon. Friend outlined in his speech, we have seen massive investment in road and rail, which has been funded in part by air passenger duty and other taxes. I point out that APD raises £3.2 billion per year, and the Chancellor has responded to concerns about it in a number of Budgets, not least by simplifying the banding so that people travelling on the longest-haul flights are not penalised. Most importantly, however, he has recognised the problems that many parents face with the high cost of flights during school holidays by bringing forward exemptions to APD for children. If there is one thing that I cannot criticise the airline and airport industries for it is making clear their views on APD.

My right hon. Friend the Member for Saffron Walden raised the issue of the A120 from Braintree to Marks Tey. In the July Budget, the Chancellor announced that the Government would co-fund a study with Essex County Council into dualling the last single-carriageway section between Stansted and the A12. That puts the scheme in a strong place for the next roads investment strategy. If funding is secured for the scheme, it could be one of the first schemes at the start of construction in roads investment strategy period 2, which I think is the equivalent of a control period in the rail industry.

The hon. Member for Luton South (Mr Shuker) talked gloriously about Luton airport and its benefits. Luton Borough Council is part of the east-west rail consortium of local authorities, and the rail investment strategy has made funds available for the reinstatement of passenger and freight services between Oxford, Bedford, Milton Keynes and Aylesbury. The infrastructure is expected to be completed by 2019, although the final stage of the electrification between Bletchley and Bedford will not be completed until 2020-21, to coincide with the electrification of the midland main line.

The hon. Member for Luton North also, not surprisingly, talked about Luton airport. Luton airport will assist the Department and Network Rail in examining the opportunity to secure four fast train services an hour to London. Upon completion of the Thameslink programme, the new franchisee Govia Thameslink Railway expects to operate 16 trains an hour between London and Luton Airport Parkway at peak times.

I have received a copy of the Oxford Economics study on the benefits of Luton airport, and I will consider the points made in it. Having visited the airport, I am aware that the short journey up the hill would be much improved were there a rail link, but given that such a link would benefit mainly the airport, it is not a project for which I would expect the taxpayer to stump up most of the money.

The hon. Member for Dunfermline and West Fife (Douglas Chapman) talked about the importance of connectivity to all parts of the United Kingdom, including Scotland. Indeed, part of the assistance that we are providing to build connectivity is helping airports in Scotland. He also said that we must not be London-centric. I say “Hear, hear” to that, coming from Yorkshire as I do. He wisely did not touch on Prestwick airport, which is now run by the SNP—the Scottish nationalisation party, as it is becoming—and he did not update us on how that is turning out. He shakes his head—I am not surprised.

The hon. Member for Cambridge was kind in recognising the high level of agreement on aviation issues, and I am pleased that we will be scrutinised in that spirit. He talked about the sustainability of aviation, which is a subject close to my heart. This year will give us a once-in-a-lifetime opportunity to secure a global market-based mechanism at the International Civil Aviation Organisation meeting, so that we can bear down on aircraft CO₂ emissions. I hope that that mechanism will be agreed later this year. Of course, airlines such as British Airlines and Virgin do tremendous work on alternative fuels produced from waste and from by-products of the steel industry.

I will give my right hon. Friend the Member for Saffron Walden plenty of time to sum up. The Government have established the right foundations for moving forward, gaining consensus and securing the benefits that aviation brings to the whole nation. We are clear about the economic and connectivity benefits that all our airports bring to regions and to business.