PARLIAMENTARY DEBATE
Airport Capacity - 25 October 2016 (Commons/Commons Chamber)
Debate Detail
Last year, the independent Airports Commission delivered its final report under the chairmanship of Sir Howard Davies. I would like to pay tribute to the quality and professionalism of the commission’s work and express my thanks to all its members. The commission concluded that we need more capacity in the south-east and put forward three viable options for expansion. It unanimously agreed that the proposed north-west runway at Heathrow presented the strongest case. In December, my predecessor came to the House to announce that the Government accepted the commission’s assessment of the need for additional capacity, but made clear that further work was required before a decision could be made on the location of a new runway. That work is now complete.
This is a momentous step for our country. The decisions taken earlier today, which I shall outline in a moment, are long overdue, but they will serve our country for generations to come. I know that some Members have strong convictions on this issue and that everyone in this House will understand the significance of this announcement for jobs; an economy that works for everyone; passengers; the global importance of our country; the environment; and people affected by expansion. It also sends a very clear message that this country is open for business.
It is not an easy issue or a simple process. I make no apologies for the fact that we have taken time to get it right, but today also shows that this is a Government who are unafraid to take difficult decisions and get on with the job. Before I outline the decision that the Government have reached, I want to explain how today’s announcement fits within the planning process and the opportunities that Members will have to contribute.
In the new year, we will bring forward a draft national policy statement, which will include the details of the proposed scheme. As required under legislation, it will be subject to a full and extensive public consultation, followed by a period of parliamentary scrutiny. Only once Members have voted on the final national policy statement and it has been designated will the airport be able to make a detailed planning application.
Strong connections with global partners and the ability to trade with new and growing markets are vital to securing Britain’s place in the world. The UK currently has the third largest aviation network in the world—second only to the United States and China—contributing more than £22 billion to UK GDP. We have the second largest aerospace manufacturing sector, which generates annual exports of £26 billion. Our aviation industry supports almost 1 million jobs and invests £1.7 billion every year in research and development. Last year, UK airports handled more than 250 million passengers—up 5% on 2014—and 2.3 million tonnes of freight.
Heathrow is the busiest two-runway airport in the world, and Gatwick the busiest single-runway airport. Indeed, the London system will be almost entirely full by 2030, with the exception of a small amount of capacity at Luton, and that will be taken up soon afterwards. If we do nothing, the cost to our nation will be significant, amounting to more than £20 billion over 60 years through delays, fewer flights and passengers having to fly from airports elsewhere. In addition, the wider impacts on our economy will be in the region of £30 billion to £45 billion. That is why the decision we have reached today is so important to the future of our country, not just to tackle the immediate shortage of airport capacity, but to set our country on a course to even greater prosperity for future generations.
I have spent a considerable amount of time this summer visiting the different schemes, talking to their promoters, and assessing their strengths and weaknesses. I have been genuinely impressed by the quality of choice available to us and the detailed work that has been put into the three plans. Any one of them would bring benefits to our country. At the end of its work, however, the Airports Commission made a clear and unanimous recommendation to the Government—that we should accept the proposal to build a new north-west runway at Heathrow, subject to a package of measures to make expansion more acceptable to the airport’s local community. Since the publication of that recommendation, my Department has studied in detail not only the report, but new and supplementary information that has emerged about the different options since.
The commission’s report and the subsequent information formed the basis of the discussion that took place this morning at the Cabinet Sub-Committee. As a result of that discussion, the Government have decided to accept the recommendation. We believe that the expansion of Heathrow airport and the north-west runway scheme, in combination with a significant package of supporting measures on the scale recommended by the Airports Commission, offers the greatest benefit to passengers and business, and will help us to deliver the broadest possible benefit to the whole United Kingdom. That approach will deliver the greatest economic and strategic benefits for our economy. It will strengthen connectivity for passengers right across the United Kingdom. It offers a major boost to freight operators. It can be delivered within carbon and air quality limits and, crucially, it comes with world-leading measures to limit the impacts on those living nearby.
In addition to the benefits identified by the commission, the scheme will deliver the connectivity and hub capacity that the UK needs to compete with fast-growing European and middle eastern hubs. The airport’s location means it is more accessible to business and the rest of the United Kingdom by both road and rail. Access to Heathrow is more resilient, and it is better placed as the national freight hub. Ultimately, the proposal will bring the largest benefit to passengers and the wider economy: up to £61 billion over 60 years. But we are not alone in this view. UK airlines and businesses are also clear that Heathrow is the right place to expand.
Before I continue, I would like to pay genuine tribute to the promoters of the other two schemes considered by the Sub-Committee. As I have said, both presented well-developed and compelling cases for new capacity. In particular, I would like to place on record the fact that Gatwick, despite not being selected today, remains a key part of our national transport picture and will continue to do so in the future.
I want to be clear that expansion will not be at any cost to local people, to passengers or to industry. We have to make three assurances. The first is about making Heathrow a better neighbour. We must tackle air quality and noise, and meet our obligations on carbon both during and after construction. Air quality is a significant national health issue that the Government take immensely seriously. That was why we undertook further work, which confirms the commission’s original conclusion that a new runway at Heathrow is deliverable within air quality limits. We remain committed to ensuring that that remains the case. The airport has already committed to industry-leading measures to mitigate air quality impacts. Furthermore, the Government will grant development consent only if we remain satisfied that a new runway will not impact on the UK’s compliance with its air quality obligations.
The broader issue of air quality is something that the Government take very seriously, and the updated evidence base shows clearly that the biggest challenge we face is not the expansion of an airport, but the levels of emissions in urban areas more generally. That is the very reason for our national air quality plan. As part of our ongoing work on air quality, my Department has embarked on a joint project with the Department for Environment, Food and Rural Affairs and the Treasury to identify further ways in which we can tackle the issue. By the time a new runway opens in the next decade, we intend to have made substantial progress on tackling such air quality challenges across our nation as a whole.
On the issue of noise, no airport can be silent, but technology is making aircraft quieter. The new generation of aircraft coming into service have a noise footprint that is typically 50% smaller on departure, and at least 30% smaller on arrival, than that of the aircraft they are replacing. Although planes are getting quieter, however, they still have an impact, which is why we will expect a six-and-a-half hour ban on scheduled flights each night to be a requirement for development consent. That would also see the airport held to clear and legally enforceable noise performance targets. Even with expansion, therefore, fewer people will be affected by aircraft noise than is the case today. We also recognise the importance of providing local residents with a clear, predictable timetable of respite from aircraft noise. That is something local communities value, and we will ensure that it continues once a new runway is built.
I recognise that the decision will have a big impact on people who live close to Heathrow, which is why we have insisted on a world-class package of supporting measures. Communities affected by the decision will be supported by up to £2.6 billion towards compensation, noise insulation for homes and schools, improvements to public facilities and other measures. For those whose homes need to be bought to make way for the new runway, Heathrow plans to pay 25% above the full market value of those homes and to cover all costs, including stamp duty, moving and legal fees. That offer is significantly above the statutory requirement. In addition, I can announce the creation of a community compensation fund. Local authorities will benefit from our policy of local retention of business rates.
The second assurance is on costs for airlines and passengers. A new runway will bring in new capacity to meet demand and allow for greater levels of competition, which will lower fares relative to no expansion, even after the costs of construction are taken into account. This is an investment in our country’s future. It will deliver major economic and strategic benefits to the UK, but they must be delivered without hitting passengers in the pocket. The Airports Commission has made it clear that that is achievable, as has the Civil Aviation Authority. It is important to send the message that this is not expansion at any cost, but the right scheme at the right price. I expect the industry to work together to drive down costs for the benefit of passengers. As the regulator, the CAA will have a vital part to play in achieving that and ensuring that new capacity fosters competition. Its aim should be to deliver a plan for expansion that keeps landing charges close to current levels, and I have full confidence in its ability to do so.
The third assurance is about how the expanded airport will benefit the whole of the UK, not just by creating jobs across the airport’s UK-wide supply chain, but by giving even more of the UK access to important international markets by strengthening existing domestic links and developing new connections to regions that are not currently served. The airport expects to add six more domestic routes across the UK by 2030, bringing the total to 14. That will strengthen existing links to nations and regions such as Northern Ireland, Scotland and the north of England, and allow the development of new connections to regions such as the south-west.
I am determined that Heathrow will meet those pledges and that the Government will hold the airport to account on them. Furthermore, the Government will take all necessary steps, including, where appropriate, ring-fencing a suitable proportion of new slots for domestic routes through public service obligations to enhance connectivity within the United Kingdom. It is important to stress that this is a decision in the national interest; it is not just about the south-east of England.
A new runway will strengthen the aviation sector across the whole nation, but we need to do even more. Our airspace is out of date. Modernising it will boost the sector and help to further reduce noise and carbon emissions. We will soon introduce proposals to support improvements to the airspace and to manage noise, which will include a consideration of the way in which affected communities can be engaged and whether there is a role for a new independent aviation noise body such as the commission recommended.
Let me turn to what happens next. There have been recent suggestions in the media that the process has been slowed down or somehow delayed. In fact, the opposite is true. Members will remember the saga of the planning process behind terminal 5, which took years to resolve. Following that, the national policy statement process, which was created by the previous Labour Government in the Planning Act 2008 and improved through the Localism Act 2011, was designed to speed up major projects, but in an open and fair manner. By setting out now why we believe that there is a need for new runway capacity, along with the supporting evidence, we will fulfil our legal obligations to consult the public and allow Members to vote on the proposal before it becomes national policy. That is what the law requires. That means that Heathrow will be able to submit a planning application safe in the knowledge that the high-level arguments have been settled and will not be reopened.
Today, the Government have reached a view on their preferred scheme, and the national policy statement that we will publish in the new year will set out in more detail why we believe it is the right one for the UK. It will also set out in more detail the conditions we wish to place on the development, including the supporting measures I outlined. We want to make sure that we have considered all the evidence and heard the voices of all those who might be affected and, of course, of those who will benefit. The consultation will start in the new year, and I can announce today that I have appointed Sir Jeremy Sullivan, the former Senior President of Tribunals, to oversee the consultation process. This is an independent role, and Sir Jeremy will be responsible for holding the Government to account and for ensuring that best practice is upheld.
The issue of runway capacity in the south-east has challenged successive Administrations for decades. There are strong feelings both for and against a third runway at Heathrow. This is not the scheme that was previously promoted in 2009. It does much more to mitigate environmental impacts, to compensate communities and to distribute benefits across the nation. This is an issue of vital national interest that touches every part of our United Kingdom. It is vital to the economic prosperity and global status of our nation, and I commend this statement to the House.
Despite the Secretary of State’s proclamation that the work is now complete, today’s announcement is not the end of the process, but merely the start of it. It beggars belief that it has taken Ministers more than a year since the publication of the Davies report even to make a start. Just what have they been doing for all these months, apart from worrying about splits in the Cabinet, or about the Foreign Secretary throwing himself in front of the bulldozers and former mayoral candidates triggering by-elections? There is no justification for dithering on this scale. The Secretary of State has failed to provide the shorter timescale for getting to the national policy statement that was set out by the Transport Committee.
We cannot bring back the time that Ministers have already wasted, so over the coming months it will be vital that there is proper engagement, and full and fair consultation with all the interested parties, so that we secure an outcome that stands the test of time. It is essential that there is proper forensic examination and scrutiny. Labour has consistently said that support for any such decision will be conditional: first, on sufficient capacity being delivered; secondly, on meeting the UK’s legal climate change obligations; thirdly, on local noise and environmental impacts being managed and minimised; and, fourthly, on the benefits not being confined to London and the south-east.
Labour fully recognises the need for runway expansion in the south-east of England, but following today’s announcement, it could be a decade before an additional runway is operational. We face capacity challenges here and now, but we heard nothing in the Secretary of State’s statement about how the Government intend to tackle the immediate shortage of airport capacity. What are his plans to utilise existing capacity in the south-east at Stansted and Luton—and, indeed, elsewhere?
There was also no mention of more utilisation of our international gateways. What message does that send to Stansted, Manchester, Birmingham and East Midlands, and what message does it send about the Government’s commitment to the so-called northern powerhouse and the midlands engine? Surface access to many of our international gateways around the UK needs improving, yet it is unclear what action the Government are taking. That is why Labour is calling for the new National Infrastructure Commission to examine the road and rail needs of airports outside the south-east. I urge the Secretary of State to support that proposal as well as Labour’s call to update the West Anglia line to improve rail services to Stansted, and to have better connectivity to Luton airport.
The Government must ensure that we do not fall short of our legal climate change obligations. We have but one planet, and it is essential that the UK plays a leading role in ensuring that agreed reductions in carbon emissions are met. Sustainable Aviation believes that UK aviation could reduce its carbon dioxide emissions by up to 24% by 2050 through the deployment of sustainable alternative fuels. Other countries have made considerable progress but, sadly, the lack of commitment and clarity from our Government caused the collapse of the British Airways green sky project. May we hear more from the Government about what steps will be taken to meet our climate change targets, particularly on developing sustainable fuels and progressing the consultation on the inclusion of aviation in the renewable transport fuels obligation?
After the Davies commission, the Government announced that they wanted to look further at environmental matters and, in particular, at air quality. As was revealed in The Guardian last week, David Cameron’s former policy adviser at No. 10 warned the then Prime Minister a year ago that he was “exposed on Heathrow”, because the Government did not have an answer about the effect on air quality. Indeed, the need for further work on air quality was the reason given for the delay, yet there was not a single reference in the Secretary of State’s statement to explain what work on that has been completed or how such work has informed his position. Will he publish—I hope he will—the additional work that he tells us the Government have done post-Davies so that those inside and outside the House can scrutinise it properly?
It is essential that the unacceptable levels of nitrogen dioxide and particulates from diesel engines are reduced because their direct impact on the health and wellbeing of tens of thousands of citizens simply cannot be ignored or tolerated. Direct measures are needed to lower emissions across the nation, especially in areas with a high concentration of emissions. I urge the Secretary of State to be unrelenting in his pursuit of improved air quality.
The commission recommended establishing an independent aviation noise authority, so will the Secretary of State immediately advise us about the Government’s intentions in that respect? Our air traffic management infrastructure is ancient, and modernisation would secure great dividends not only in terms of carbon emissions, but through considerable mitigations on noise and air quality. What steps is he taking to ensure that the modernisation that is so urgently needed is prioritised and progressed?
On our fourth test that the benefits of expansion are not confined to London and the south-east, it is essential that landing slots affording better connectivity and trading links for our nations and regions are maintained in the longer term. Any assurances that the Secretary of State can give in that respect would be most welcome. Will he also assure the House that the entire UK will be afforded a proper opportunity to engage in the construction process? Perhaps some of the HS2 Ltd protocols can be adopted. You never know, but we might be using UK steel.
The location of an additional runway cannot be the sum total of aviation strategy, so I urge the Secretary of State to press ahead with the full range of measures that are necessary to sustain our successful aviation industry. We must also ensure that the best interests of all the United Kingdom are served, and that the legitimate environmental concerns that have been raised, and that will continue to be raised, are fully addressed. We must do all that we can to protect our precious planet for the generations to come.
On the timeframe, the hon. Gentleman asked me what we have been doing for the past year. We have been doing precisely what he asked about: working on the issue of air quality. Today and over the coming days, we will publish additional material so that Members, the public and others who are interested will be able to scrutinise in detail the work we have done and the route we have followed to reach this conclusion. Given the particular importance of air quality, he would expect us to make sure that we had done the additional work to satisfy ourselves that this can be done in line with what we all accept are our necessary priorities for reducing emissions levels.
The hon. Gentleman talked about what will happen during the coming months. As I said earlier, yes, there will be a full and proper consultation. That consultation is set out clearly in statute—[Interruption.] Despite the murmurings of Opposition Members, the consultation is set out in an Act that Labour rightly passed to improve the process of going ahead with such a national project. That is the process we will follow. We will do so in as timely a way as we can, but we cannot short-change a process set out in primary legislation.
On the capacity challenges here and now, there is absolutely nothing to stop new routes being set up tomorrow. We have capacity at Stansted, and new routes have come into Heathrow and Gatwick in the past 12 months. We are not preventing the airports around London that still have capacity—
There are clearly some big surface access issues to address in connection with this new scheme. However, I remind the hon. Member for Middlesbrough (Andy McDonald) that we are close to completion of Crossrail, which will make a major difference to connectivity to Heathrow, we will shortly be starting improvements to the M25 between Heathrow and Gatwick, and the new Thameslink routes are due to open in about 18 months’ time, which will significantly improve links to Luton airport. Things are already happening to improve surface access links to our airports.
Climate change is a very important issue that we take very seriously. I was delighted by the agreement reached at the International Civil Aviation Organisation summit in Montreal recently, which sets a way forward for the aviation industry with international agreement. That is a significant step forward. We agree that a significant challenge remains that we must monitor very carefully, but the Airports Commission said very clearly that the expansion could take place and we could meet our objectives. That is what we intend to do.
The hon. Gentleman mentioned sustainable fuels, and good work is being done on those, by Virgin in this country, for example, and by airlines around the world. The technology will improve as the years go by.
The hon. Gentleman asked what we are doing on air quality. I agree with him that it is a bigger issue for our country, affecting very many of our urban areas. It requires a broad-ranging response to deal with it through clean air zones, as set out in our national air quality strategy, and other measures that we are working on that go beyond that strategy and continue a process of improvement over the coming decade.
I said in my remarks that I would consult on a noise authority and that we would bring forward plans for airspace modernisation. On regional connectivity, I am happy to restate our commitment to hon. Members from Scotland, Wales, Northern Ireland, northern England and the south-west. We are very clear that this expansion must include binding provision for links to those parts of the country. This has to be a benefit to the entire United Kingdom and it will be. On the hon. Gentleman’s last point, Heathrow airport is committed to ensuring that the project will be built using UK steel.
That said, we welcome the announcement of Heathrow as a preference. Although airport expansion of this type disproportionately benefits the south-east of England, it has strategic consequences for Scottish air routes. In preparation for this announcement, and after more than 18 months of meetings with, among others, airports, campaign groups, business bodies and the UK Government, the Scottish National party Scottish Government have agreed a memorandum of understanding with Heathrow that will bring, among many other things, jobs, an engineering hub and route support to Scotland.
It is now time for the UK Government to ensure a full and fair deal for Scotland. We must see a commitment to addressing those needs. A lot is required. Will the Secretary of State commit to meeting the following wider challenges? First, as he has intimated, will he work with me and the Scottish Government to develop genuine route support and public service obligations, and address Scotland’s needs in relation to this development? Secondly, will he make a proper commitment to supporting aircraft biofuels and giving genuine encouragement to carbon-reducing technology in aircraft? Thirdly, will he go further than he did in his statement and commit to starting immediate work to replace the airspace strategy for the UK, which is more than 50 years old?
The hon. Gentleman talked about the benefits the expansion can bring to Scotland. I absolutely agree and will be delighted to work with his party and my counterparts in other parties in Scotland to ensure that Scotland gets a good deal out of all of this. It is not just about Scotland, however, but about the whole United Kingdom. It is about Northern Ireland. It is about making sure that skills development happens in Wales. It is about ensuring better links to the south-west of England, and good links to the north-east—I am going to Newcastle tomorrow, and the north-east is one region that I hope will benefit from today’s announcement. This is about the whole United Kingdom and so I have every intention of ensuring that our work is about the whole UK.
The hon. Gentleman raised the airspace modernisation programme. The CAA has already started preparatory work on that, and we need to press ahead with it, not simply because of today’s announcement but because we need to change many of the things that unnecessarily use up fuel and cause additional carbon emissions, such as the stacking structures. That work is beginning. We will consult on it extensively over the next two years. That modernisation has to happen alongside the development of the runway plan.
This project is funded by the private sector, and there are no Barnett consequentials in a private project. There are Barnett consequentials when we invest in our infrastructure in the public sector, but I fear that there will not be any as a result of spending by Heathrow airport shareholders. As for the question of slots in the meantime, we always want to protect connectivity with Northern Ireland—indeed, we have just done so in the case of the route from Londonderry to Stansted—and we would be extremely concerned if routes to Belfast were in any jeopardy.
I feel that an opportunity has been lost here. As a party, we believe in competition. Surely it would have been better to agree on extra runway capacity at both Gatwick and Heathrow, which would have settled the matter for a long time henceforth. What is Gatwick’s future following today’s announcement?
“I hope…the Government will recognise…widespread hostility to Heathrow expansion and say no to a third runway.”
Those are not my words, but the words of our present Prime Minister. Why are the Government disregarding “widespread hostility”, and bulldozing through a third runway which will inflict crippling noise, significant climate change effects, health-damaging pollution and catastrophic congestion on 1 million Londoners?
I warmly welcome the Secretary of State’s announcement, but if Heathrow is to meet its emissions targets a large number of people will have to be persuaded to travel by rail rather than car, so will he say something about the western rail link proposals? Will he also consider providing fast rail links between all London’s airports?
I strongly welcome my right hon. Friend’s announcement, which is very important to the south-west of England. Will he redouble his efforts to ensure that he holds the promoters to their commitments about regional connectivity, which he said he would do in his statement? Will he also ensure—my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) referred to this—that people in my constituency and elsewhere in the south-west can travel easily to the expanded Heathrow airport, and thence to the world?
I want this to move ahead as quickly as possible. There is a statutory process we have to follow. There is then a detailed period of design. This has always been something that will be ready for the middle of the next decade. I would love to wave a wand and have it quicker than that, but these things take a long time to design and construct, quite apart from the regulatory process. I know, however, that everybody involved will want to move as quickly as possible.
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