PARLIAMENTARY DEBATE
Airport Capacity and Airspace Policy - 2 February 2017 (Commons/Commons Chamber)
Debate Detail
In October last year, I announced that the Government had selected a new north-west runway scheme at Heathrow as its preferred scheme for new airport capacity in the south-east. Aviation expansion is important for the UK, both in boosting our economy and jobs, and in promoting us on the world stage. Leaving the EU is a new chapter for Britain and it provides us with a great opportunity to forge a new role in the world. We are determined to seize that opportunity, and having the right infrastructure in place will allow us to build a more global Britain. By backing the north-west runway at Heathrow airport and publishing our proposals today, we are sending a clear signal that when we leave the EU Britain will be open for business.
Today, I lay before Parliament a draft airports national policy statement and begin a period of extensive public consultation on the proposals it contains. The draft airports national policy statement is accompanied by an appraisal of sustainability, which assesses the potential economic, social and environmental impacts of the proposed policy. I have published all this information online to ensure that the process is as transparent as possible.
Over the past 70 years, the UK has failed to build the capacity needed to match people’s growing desire for travel. Unless we take action, every London airport is forecast to be full by 2040 and almost entirely full by 2030. Doing nothing is no longer a choice we can afford to make. Without expansion, constraints in the aviation sector would impose increasing costs on the rest of the economy over time, lowering economic output by making aviation more expensive and less convenient to use, with knock-on effects in lost trade, tourism and foreign direct investment.
The Government believe that a new north-west runway at Heathrow best delivers the need for additional airport capacity. The draft airports national policy statement sets out this rationale in full. It is expected that Heathrow will provide the greatest economic and employment benefits, delivering tens of thousands of additional local jobs by 2030 and up to £61 billion of economic benefits, not including wider trade benefits. The scheme will benefit the whole of the UK. I expect Heathrow airport to work with airlines to improve domestic connectivity, including the addition of six more domestic routes across the UK by 2030, bringing the total to 14. This will strengthen existing links to nations and regions, and develop new connections.
Heathrow’s location means it is already accessible to business and the rest of the UK. In future, it will be connected to Crossrail, and linked to HS2 at Old Oak Common. We are also bringing forward plans to deliver western and southern rail access to the airport as quickly as possible to provide greater flexibility, accessibility and resilience for passengers. The Heathrow north-west runway would be expected to deliver the greatest support for freight. As we leave the European Union, we will need to get out into the world and do new business with old allies and new partners alike. A new north-west runway at Heathrow will be at the heart of this. In summary, a new north-west runway at Heathrow would be expected to create new global connections, create tens of thousands of jobs, reduce fares for passengers, provide new capacity for freight imports and exports, and spread the benefits of growth to the whole of the UK. Today we are sending a clear message that the Government are not only making the big decisions but getting on with delivering them.
I am clear that expansion must not come at any cost and that we will meet our legal requirements on air quality and obligations on carbon. The airports national policy statement, if designated, will provide the primary basis for making decisions on any development consent application for a new north-west runway at Heathrow. Heathrow airport would be expected to provide up to £2.6 billion to communities affected by the expansion, including noise insulation for homes and schools, improvements to public facilities and other measures. This includes a community compensation fund and establishing a community engagement board.
For those people whose homes need to be compulsorily purchased to make way for the new runway, or for those who take up the voluntary scheme, Heathrow must honour its commitment of payments of 25% above the full market value of people’s homes and its commitment to cover all costs, such as stamp duty, and moving and legal fees. I am also clear that the environmental impact of expansion must be minimised. Industry-leading measures will be required to mitigate air quality impacts, and Heathrow airport will be required to demonstrate that the scheme can be delivered within legal air quality obligations.
The airport should continue to strive to meet its public pledge to ensure that landside airport-related traffic is no greater than today. Measures will also be required to mitigate the impacts of noise, including legally binding noise targets and periods of predictable respite. The Government expect a ban of six and a half hours on scheduled night flights.
Lastly, construction must take place in a manner that minimises impacts on the environment and the local community. Outside of the planning system, I am clear that there must be conditions on cost and that expansion costs will be paid for by the private sector, not the taxpayer. The Government expect industry to work together to drive down costs. I have appointed Sir Jeremy Sullivan, the former Senior President of Tribunals, to provide independent oversight of the draft airports national policy statement consultation process.
The second consultation that I wish to bring to the attention of the House is on UK airspace policy. I am publishing proposals to modernise the way UK airspace is managed, which will be consulted on in parallel. By taking steps now to future-proof this vital infrastructure, we can harness the latest technology to make airspace more efficient as well as making journeys faster and more environmentally friendly. The policy principles set out in this airspace consultation will influence decisions taken later in the planning process for a north-west runway at Heathrow. It is therefore sensible to allow members of the public to express views on both these issues at the same time.
The consultation will set out our plans to establish an independent commission on civil aviation noise and bring forward proposals to improve how communities can engage and make sure their voices are heard. To complement this, we are proposing guidance on how noise impacts should be assessed and used to inform decisions on airspace options. These proposals aim to strike a balance between the economic benefits of a thriving aviation sector and its impacts on local communities and the environment.
The aviation sector is a great British success story: it contributes around £20 billion per year, directly supports approximately 230,000 jobs across the United Kingdom and supports an estimated 260,000 jobs across the wider economy. I want to build on this success, and this year my Department will begin developing a new strategy for UK aviation generally that will champion the success story of the UK’s aviation sector and put the consumer back at the heart of our thinking. I want to make sure that the sector is delivering more choice for consumers and the country as a whole, and I will come back to the House to update you, Mr Speaker, and hon. Members on our plans as they develop.
Finally, I turn briefly to what happens next. These two consultations will start today and last for 16 weeks, closing on 25 May. At the same time, and as required by the Planning Act 2008, a period of parliamentary scrutiny—the “relevant period”—now begins for the draft airports national policy statement. It will end by summer recess 2017. Although planning is a devolved matter, the consultation will be open to the whole of the UK, as additional airport capacity will benefit us all.
Following consultation and parliamentary scrutiny, consideration will be given to the comments and points raised. In the light of those processes, should the decision be taken to proceed, a final airports national policy statement will be laid before Parliament for debate and there will be the opportunity for a vote in the House of Commons in winter 2017-18.
I will place copies of all the relevant documents in the House; they will also be available online for Members and members of the public. I commend the statement and process to the House.
Aviation is key to ensuring that the UK remains an outward-looking trading nation post-Brexit, and Labour has consistently been pushing for a decision on runway expansion in south-east England, so after years of dither and delay, it is welcome that progress is finally being made. We have been calling for action on airspace modernisation for some time, and although we cannot see it, our airspace network is in dire need of modernisation. It is over half a century old but is still among our country’s most vital pieces of infrastructure. Modernising airspace will involve tough decisions, but the benefits are huge. It is in the national interest for the Government to ensure that they deliver a balanced and sustainable airspace solution.
However, there are outstanding issues, including how Heathrow expansion can be squared with meeting the UK’s climate change objectives and demonstrating that local noise and environmental impacts can be minimised. This can be achieved, but only in the context of a coherent aviation strategy that works for the country, not just for London. It starts with confirming our membership of the European Aviation Safety Agency, as well as taking action on cleaner fuels and improving road and rail access to our international gateway airports.
As the Secretary of State knows, business loathes uncertainty, and aviation is no exception. What assurances can he give that the UK’s continued membership of the European Aviation Safety Agency is and will remain an absolute priority? What does his commitment to leaving the single market mean for leaving the single aviation market? The Committee on Climate Change cautioned against relying on carbon trading for Heathrow to achieve its emission targets, as that option might not always be cheap and available. Will he provide an update on whether he plans to reject that advice?
There is increasing concern about air quality, which is linked to 40,000 early deaths a year. David Cameron’s former aide—now Baroness Camilla Cavendish—claimed that the existing policy on air quality “overclaims and underwhelms”. Given that inadequacy, what further and stringent measures will be proposed to mitigate the expected expansion at Heathrow?
Key to improving air quality, alongside a move to reducing vehicle emissions, is encouraging more people to use public transport to arrive at our airports. Enhancements are needed to Heathrow’s rail services if the objective of having public transport usage of 55% is to be achieved. I invite the Secretary of State to outline what progress he is making and how he can ensure that the business beneficiaries of such enhancements will make a fair contribution. If we are to secure the modal shift to accessing airports by public transport and in the context of the aviation strategy, I invite him to confirm that the National Infrastructure Commission will be asked to inquire into the issue of surface access at all our international gateway airports and seaports.
I welcome the Secretary of State’s commitment to fulfilling our legal requirements on air quality and obligations on carbon, and I note the reference to Heathrow striving to meet its public pledge that airport-related public traffic will be no greater than it is today. But it is not simply about the volume of traffic; it is about vastly reducing the emissions that come from such traffic. Much of that relates to ultra-low emission vehicles, which will be key to securing our shared objectives. The modern transport Bill will hopefully progress the agenda considerably, so, finally, will the Secretary of State tell the House when we are likely to see that Bill?
Let me seek to answer the hon. Gentleman’s questions. First, we have not reached a definitive position on the European issue. Obviously the negotiations have not started and we have not yet triggered article 50. I am acutely aware that aviation is one of the sectors that we need to handle with great care, working out the best way of protecting our sector and delivering the right connectivity for the future. I will come back to the House at an appropriate moment and provide more information, but, as he is aware, we are not really in a position to provide detail of the negotiations in advance. However, I appreciate that he will want to understand in due course where we have got to, and we will endeavour to make sure that we keep the House as fully informed as we properly can, given the negotiation process.
As the hon. Gentleman said, aviation is not included in the current climate change target. It is clearly an issue, however, and has been since the recent agreement in Montreal, subject to an international strategy going forward. We are consulting today on things such as the smarter use of airspace. Through airspace reform and the technology that is now available to us, we will be able to avoid, to anything like the degree experienced at the moment, planes stacking over the south-east of England, emitting additional emissions into the atmosphere and using up more fuel. That is one of the benefits that comes from the smarter use of airspace, which will help to make a contribution, as will cleaner, newer generation, more fuel-efficient aircraft, which I think we will see extensively in this country over the coming years.
On the issue of NOx, diesel and emissions on the surrounding roads, the hon. Gentleman will be aware that this is much more a car issue than a plane issue. It is about the propensity of congested areas to cause a genuine public health problem, so it is a broader issue for the Government to address than simply the airport. We have already made a start, with the incentives that are in place for low-emission vehicles and the expansion of charging points that we set out in the autumn statement. We will also shortly be seeing the Bill that he mentioned—it would have been here by now, had we not had a bit of other business to deal with in the House. The issues in that Bill will be important, but I am well aware, and the Government are well aware, that we will have to do much more on the emissions front. My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs will come forward in due course with further proposals to tackle what is a broader issue than just airport expansion. It is one that we cannot possibly wait until airport expansion happens to address, and we will not.
The hon. Gentleman raised the issue of rail services, and we already have significant plans for their development. The arrival of Crossrail and of HS2 at Old Oak Common will make a significant difference to public transport access to Heathrow, as will the proposed modernisation of the Piccadilly line, which will significantly expand capacity on that route. We are now also starting the development work on rail access to the south and the west of Heathrow airport, and he is absolutely right to raise this issue. It is something that we are now working on and the private sector will make a substantial contribution to the costs.
Lastly, the hon. Gentleman raised the importance of land and surface access to ports and airports around the country. I can confirm to him that we are looking at this in a variety of forums. As we move into this post-Brexit world and in a world where we need to facilitate trade, I am particularly concerned to ensure that where there are blockages, congestion points or limitations around ports and airports, we take the necessary steps to address those, and we will.
I am grateful to the hon. Gentleman for his supportive comments, and will obviously try to keep him and the House as informed as possible.
I think that airspace modernisation makes a real difference to communities in the south-east, because it enables us to put planes on much more exact paths. Today, sat-nav technology allows a plane to follow a much more exact route than the traditional beacons did. It enables us to manage approaches to airports, airport descent and ascent rates, and the overall use of airports so that we do not experience stacking around the south-east as we do today. I hope that the second part of the process that I have announced, which I believe is as important to communities throughout the country as the airport expansion, will allow us to ensure that the sector becomes much friendlier to the communities that it affects.
We welcome the decision to go ahead with the expansion of Heathrow and the new runway. After many years of waiting, it is time to get on with delivering that, as well as the specific benefits that it can bring. However, building a new runway is meaningless if we do not have access to the air and the EU-US open skies agreement. Does the Secretary of State intend to seek membership of that arrangement?
The Secretary of State mentioned regional airports, which are vital, and I agree that these connections need to be made. What guarantees will he give to regional airports in Scotland, especially the likes of Dundee and Inverness, about routes and slots following the Heathrow expansion? He also mentioned the need to deal with environmental issues and tackle carbon emissions. What targets will he specify to demonstrate ambition above the legal requirements to which he referred?
The hon. Gentleman asks about regional airports. Heathrow will be under an obligation to fulfil its promises in respect of regional connectivity. I expect this capacity to open links not only between the United Kingdom and the rest of the world, but from within the United Kingdom to Heathrow and the rest of the world. That is important to airports in Scotland, the north of England, and other parts of the United Kingdom—Northern Ireland, the south-west, and so forth.
The hon. Gentleman asked about the open skies agreement. As I said earlier, that will be a subject for negotiation. We will obviously seek to provide the best possible arrangements for the future but, whatever the arrangements, the fact remains that there were flights to and from European Union capitals long before the European Union even existed, and that will continue after Britain has left the European Union. We will have strong aviation ties around the world. Of course, this expansion is not particularly about European Union links; it will open up ties between the UK and markets around the world, including emerging markets. It will provide Scotland, Wales, Northern Ireland and England with links to markets where there is great potential and opportunity for the future.
Let me say two things about pollution. First, we made our decision on the basis of recommendations made to us by the Airports Commission, and subsequent work was carried out by the Government in the wake of more recent developments relating to emissions from motor vehicles. We are clear in our view that the expansion is deliverable within the rules, but the Government intend to go much further to tackle emissions from motor vehicles. The issue of NOx––oxides of nitrogen—emissions is much more about urban congestion than airports. It is something that we have to deal with, and we will have to deal with it much sooner than when we start to expand Heathrow airport in the next decade.
On pollution, as I have said, we had detailed analysis from the Airports Commission and, since then, from independent consultants. The Government’s judgment is that this expansion is deliverable within air quality rules but, as I have just said, we have a big task in this country to address the much broader issue of air quality. We cannot simply sit with the status quo until the middle of the next decade when this runway opens; we need to have made a big impact before then.
We have carried out further work since the Airports Commission reported, as well as since the Volkswagen emissions issue emerged. It is still the judgment of my team and our advisers that the expansion can be delivered within the current rules but, of course, we intend to go much further than that. We cannot afford not to be much more transformational between now and the middle of the next decade. The problem is to do with not this airport, but our urban areas generally, and we have to deal with it.
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