PARLIAMENTARY DEBATE
Airports National Policy Statement - 5 June 2018 (Commons/Commons Chamber)
Debate Detail
The Government have a clear vision: to build a Britain fit for the future and a Britain with a prosperous jobs market and an economy that works for everyone. That is why I come to the House to mark an historic moment. Today I am laying before Parliament our final proposal for an airports national policy statement, which signals our commitment to securing global connectivity, creating tens of thousands of local jobs and apprenticeships, and boosting our economy for future generations by expanding Heathrow airport. It is an example of how the Government are taking forward their industrial strategy.
As you know, Mr Speaker, taking such a decision is never easy. This issue has been debated for half a century. My Department has met local residents and fully understands their strength of feeling. But this is a decision taken in the national interest, based on detailed evidence. In 2015, the independent Airports Commission concluded that a new north-west runway at Heathrow was the best scheme to deliver additional capacity, and in October 2016 we agreed. We ran two national consultations during 2017 and received more than 80,000 responses. All the points raised have been carefully considered, and today we are publishing the Government’s response.
To ensure fairness and transparency we appointed an independent consultation adviser, the former Court of Appeal judge, Sir Jeremy Sullivan. Our draft NPS was scrutinised by the Transport Committee, and I thank the Chair of the Committee and her team for the thoroughness of their work. I was pleased that they, like me and my colleagues in the Government, accepted the case for expansion and concluded that we are right to pursue development through an additional runway at Heathrow. We welcome and have acted on 24 out of 25 of its recommendations. Our response to the Committee is also being published today.
This country has one of the largest aviation sectors in the world, contributing £22 billion to our GDP, supporting half a million jobs, servicing 285 million passengers and transporting 2.6 million tonnes of freight last year. The time for action is now. Heathrow is already full, and the evidence shows that the remaining London airports will not be far behind. Despite Heathrow being the busiest two-runway airport in the world, its capacity constraints mean that it is falling behind its global competitors, impacting the UK’s economy and global trading opportunities.
Expansion at Heathrow will bring real benefits across the country, including a boost of up to £74 billion to passengers and the wider economy, providing better connections to growing world markets, and increasing flights to more long-haul destinations. Heathrow is a nationally significant freight hub, carrying more freight by value than all other UK airports combined. A third runway would enable it to nearly double its current freight capacity.
In addition—this is crucial—this is a project with benefits that reach far beyond London. We expect up to 15% of slots on a new runway to facilitate domestic connections across the UK, spreading the benefits of expansion to our great nations and regions. As well as new routes, I would expect there to be increased competition on existing routes, giving greater choice to passengers. I say very clearly that regional connectivity is one of the key reasons for the decision we have taken.
I recognise the strong convictions that many Members of this House and their constituents have on this issue, and the impacts on those living in the local area. It is for that reason that we have included strong mitigations in the NPS to limit those impacts. Communities will be supported by up to £2.6 billion towards compensation, noise insulation and improvements to public amenities— 10 times bigger than under the 2009 third runway proposal. This package is comparable with some of the most generous in the world and includes £700 million for noise insulation for homes and £40 million to insulate schools and community buildings. The airport has offered 125% of the full market value for homes in the compulsory and voluntary purchase zones, plus stamp duty, moving costs and legal fees, as well as a legally binding noise envelope and more predictable periods of respite.
For the first time ever, we expect and intend to deliver a six-and-a-half-hour ban on scheduled night flights. But my ambitions do not stop there. If the House agrees and the NPS is designated and the scheme progresses, I will encourage Heathrow and airlines to work with local communities to propose longer periods of respite during a further consultation on night flight restrictions. We will grant development consent only if we are satisfied that a new runway would not impact the UK’s compliance with air quality obligations. Advances in technology also mean that new planes are cleaner, greener and quieter than the ones they are replacing.
Earlier this year a community engagement board was established, and we appointed Rachel Cerfontyne as its independent chair. It will focus on building relations between Heathrow and its communities, considering the design of the community compensation fund, which could be worth up to £50 million a year, and holding the airport to account when it comes to delivering on its commitments today and into the future.
There has been much debate about the costs of this scheme. Our position could not be clearer: expansion will be privately financed. Crucially, expansion must also remain affordable to consumers. We took a firm step when I asked the industry regulator, the Civil Aviation Authority, to ensure the scheme remains affordable while meeting the needs of current and future passengers. This process has already borne fruit, with the identification of potential savings of up to £2.5 billion. I am confident that that process can and should continue, that further cost savings can be identified and that the design of the expansion can continue to evolve to better reflect the needs of consumers. That is why I have recommissioned the Civil Aviation Authority to continue to work with industry to deliver the ambition that I set out in 2016 to keep landing charges at or close to current levels. That work will include gateway reviews, independent scrutiny and benchmarking of proposals, which I know are of paramount importance to British Airways, Virgin Atlantic and the wider airline community.
I want to talk now about scheme delivery and ownership. The north-west runway scheme put forward by Heathrow was selected by the Government following a rigorous process. Since then, Heathrow has continued to make strong progress, having already consulted on its scheme design and airspace principles earlier this year. Some stakeholders have suggested that we should now look again at who delivers expansion. While I, and we, will always retain an open mind, my current assessment is that caution is needed at this stage. Heathrow is an operational airport under a single management, and I am clear that it is currently the only credible promoter that could deliver this transformational scheme in its entirety.
I welcome the Civil Aviation Authority’s April consultation, which expects Heathrow to engage in good faith with third parties to ensure that expansion is delivered in a way that benefits the consumer. However, that needs to be balanced against the need for timely delivery, and that is why my Department will be working closely with Heathrow to enable delivery of the new runway by its current target date of 2026.
Heathrow is already Britain’s best-connected airport by road and rail. That will be further strengthened by future improvements to the Piccadilly line, new links to Heathrow through Crossrail, connections to High Speed 2 via an interchange at Old Oak Common and plans for western and southern rail access to the airport. On 24 April, I met the industry and financial backers who can potentially come forward with plans to deliver the new southern rail access to the airport.
Even with today’s announcement, a new operational runway at Heathrow is still a number of years away. The Airports Commission recommended that there would also be a need for other airports to make more intensive use of their existing infrastructure, and we consulted on that in the aviation strategy call for evidence last year.
Apart from Heathrow, I would also like to confirm today that the Government support other airports making best use of their existing runways. However, we recognise that the development of airports can have negative as well as positive local impacts, including on noise levels. We therefore consider that any proposals should be judged on their individual merits by the appropriate planning authority, taking careful account of all relevant considerations, and particularly economic and environmental impacts.
Furthermore, in April we set out our next steps, which will see us work closely with industry, business, consumer and environmental groups to develop an aviation strategy that sets out the long-term policy direction for aviation to 2050 and beyond, while addressing the changing needs and expectations of passengers. It will set out a framework for future sustainable growth across the United Kingdom, how we plan to manage our congested airspace, and how we plan to use innovative technology to deliver cleaner, quieter and quicker journeys for the benefit of passengers and communities. Airspace modernisation has to be taken forward irrespective of the decision on the proposed new runway, and to do so we expect multiple airports across the south of England to bring forward consultations on their proposals on how to manage the airspace around their locations.
Returning to Heathrow, the planning system involves two separate processes: one to set the policy—effectively outline planning consent—which is our national policy statement, and then, if the House votes in favour of it and it is then designated, a second process for securing the detailed development consent that the airport will require. The next steps would therefore be for Heathrow to develop its plans, including details of the scheme design and airspace change, and hold a further consultation to allow the public a further say on the next phase of Heathrow’s plans and additional opportunities to have their voices heard. Any application for development consent will of course be considered carefully and with an open mind, based on the evidence provided. The process includes a public examination by the independent Planning Inspectorate before a final decision is made.
Alongside the NPS today, I have published a comprehensive package of materials that I hope and believe will enable Members of the House to make an informed decision ahead of the vote. It is very comprehensive, and I hope that it will provide answers to the questions that Members will have.
I hope that Members will feel that the scheme is crucial to our national interest and that we need to work together to deliver it in order to create what I believe is an absolutely vital legacy for the future of this country. I hope that Members across the House will get behind the plan and support this nationally strategically important project, and I commend this statement to the House.
Today’s statement has been a long time coming. We have had 11 years of consultation and nine years since the expansion was given the green light. The Secretary of State came to the House yesterday to explain the calamitous implementation of new rail timetables. He now stands at the Dispatch Box today and expects the House to accept what he says about the most significant of infrastructure projects. I am sorry, but this Secretary of State has form. The only reason he is at the Dispatch Box is that the Prime Minister is too weak to sack him. I regret that he simply does not enjoy the confidence of the House. [Interruption.] Government Members complain, but I did not hear them shouting their support for him yesterday. In fact, the loudest criticisms came from Members on their Benches.
Labour will consider proposed expansion through the framework of our well-established four tests: expansion should happen only if it can effectively deliver on the capacity demands; if noise and air quality issues are fully addressed; if the UK’s climate change obligations are met in their entirety; and if growth across the country is supported. We owe it to future generations to get all those factors absolutely right. If the correct balance is not found, the law courts will quite rightly intervene.
I commend the superb work of the Chair and members of the cross-party Transport Committee. Their report into the airports national policy statement published in March left no stone unturned. Their support for approving the NPS is explicitly conditional upon 25 recommendations being addressed. The Secretary of State says that he has “acted on” 24 of the 25 recommendations. What does that mean? Are they going to be conditions or simply aspirations and expectations? For example, the Committee concluded that there was a high risk of the NPS breaching air quality compliance. Furthermore, the Department for Transport has not published a comprehensive surface access assessment, so it is impossible to demonstrate that the target of no more airport-related traffic can be met. His statement today takes that issue no further forward.
The Committee highlighted that there was almost no mention of potential cost and investment risk. What guarantees can the Government provide that the high-cost risks will not end up being covered by the public purse? How can the business case for expansion ensure that passenger benefits are met? The Secretary of State says he will keep charges close to current levels. What sort of assurance is that? Further uncertainties remain about the NPS as originally drawn, on noise analysis and flightpath modelling. It remains to be seen whether the revised NPS adequately addresses those and other issues.
The Secretary of State says that he will encourage Heathrow to work with communities on longer respite periods. What teeth are there in any of these proposals or promises? His claims about the benefits of new technologies have to be based on real evidence and not some fanciful expectation of future advances. Some of us have not forgotten his empty promises on dual fuel trains, which we are now told do not exist. He says he intends and expects 15% of slots to be for domestic connections. How will that be secured? Intentions, expectations and encouragements are simply not enough.
It is imperative that the Government provide guarantees to the House that the recommendations and conditions established by the Transport Committee will be embedded in the revised NPS. Yesterday reminded Members across the House that the assurances of this Secretary of State are anything but cast-iron. It is absolutely essential that the Government embed the Select Committee’s recommendations in their revision of it. I remind the House that the Committee says very clearly that the planning process should move to the next stage only if its concerns, as detailed in its excellent report, are properly addressed by the Government in the final NPS. It is our task to scrutinise the revised NPS in full detail in the coming days. Labour will faithfully follow our framework tests and follow the evidence across the 25 recommendations. We will not rely on the Secretary of State’s assurances, which are sadly not worth the Hansard they are printed on.
The shadow Secretary of State raised several detailed points. There is a huge amount of material—thousands of pages—that he and others can read through, but let me pick up on just a few of the items he raised. He mentioned air quality. The runway cannot be opened if it does not meet air quality rules, but I have been clear all along that the air quality issues around Heathrow are much more than issues of the airport itself; they are typical of the air quality issues that face metropolitan areas in this country and elsewhere in the world, which is why my right hon. Friend the Environment Secretary has brought forward an air quality plan. In addition, Heathrow Airport is consulting on a low emissions zone that would make it impossible, without a substantial charge, to bring a higher-emission vehicle into the airport when the runway is open—assuming that the parliamentary and development processes go according to plan. So that has to be addressed; it is not an optional extra for the airport—it has to happen.
The shadow Secretary of State made a point about night flights. That has to be and will be a planning condition. He also asked about the Select Committee’s recommendations. About half have been embedded in the NPS; the remaining half will either happen at the development consent order stage or are requirements for the CAA to follow up on and deliver. We have accepted the recommendations, however, and will follow faithfully the Select Committee’s wishes to make sure that its recommendations are properly addressed at each stage of the process. As I said earlier, this is a multi-stage process, and the Committee’s recommendations referred not just to the NPS but to the subsequent stages.
The shadow Secretary of State asked about landing charges, which, of course are regulated by the CAA. I have been clear that landing charges have to stay pretty much at current levels in real terms. This cannot be an excuse for the airport to hike its landing charges substantially. That would not work for consumers or our economy. Equally, the commitments on night flights have to be addressed. This project will not have credibility if such promises to the local community are not properly fulfilled.
The shadow Secretary of State asked about investability. We have had the investability and delivery date independently assured. I have also talked to Heathrow shareholders, who have emphasised to me their commitment to this project. I am absolutely of the view that the project can and will be delivered. We simply have to look at the price at which slots for Heathrow airport sell on the open market to realise that this is one of the world’s premier airports and enormously attractive to international airlines and that expanding its route network will deliver jobs all around the country.
That is the most important thing for everyone in the House to bear in mind, whether they are in Scotland, the north of England, the south-west, Wales or Northern Ireland, and we should not forget our Crown dependencies and Gibraltar either. They also depend on air links to the UK. This project is a way of making sure that our citizens—the people we represent—and the businesses they work in have access to the strategic routes of the future that they will need. If we are to be a successful nation in the post-Brexit world, we will need advances such as this one that can make a real difference to the future of this country.
I am disappointed, therefore, that the Labour party has not said that it supports expansion in principle. I do support it, as do Members in all parts of the House, and in the coming days we will have a vote—we have 21 sitting days before the deadline for that vote. In the time ahead, I and my officials will happily talk to parliamentary colleagues about the details and, I hope, reassure anyone with doubts that this is the right project for the country.
I have statutory powers, which I have already used on two occasions, to enable the Civil Aviation Authority to monitor the costs of the project to ensure that they are driven down. I renewed those powers recently, and I will continue to do so whenever necessary.
This has been another polarising issue, and aspects of the UK Government’s approach in the past and the delaying tactics have not helped matters. However, I welcome the progress that is being made, and the fact that a vote appears to be imminent. The option of Heathrow expansion was recommended by the Airports Commission. It was also backed by the Transport Committee, as we have heard, and I pay tribute to its work in scrutinising the national policy statement.
To be fair, Heathrow has engaged fully with the Scottish Government, and has signed a memorandum of understanding in relation to commitments to Scotland. It refers to a construction logistics hub, and, for selfish constituency reasons, I should like that to be based at Prestwick airport. There is also a commitment to a £10 million route development fund, and a commitment to promoting Scotland in the future. I must be honest: for me, supporting expansion at Heathrow from a Scottish perspective was initially counter-intuitive. However, all but one of the Scottish airport operators support it. So do the various Scottish chambers of commerce, because they recognise the business benefits that it can bring to Scotland, including up to 16,000 new jobs. That helped to sway me, and the Scottish Government have reiterated their support.
Let me ask the Secretary of State some questions about his statement. He spoke of benefits for nations and regions, and an expected
“15% of slots on a new runway to facilitate domestic connections across the UK”.
However, he has still not explained how he will ensure that that happens. Will conditions be imposed, and will he consider Scotland’s needs? How will he ensure that what is proposed for Heathrow will increase passenger numbers at Scottish airports? He said that he had recommissioned the CAA to work with the industry to keep charges close to their current levels, but he did not make it clear how there could be certainty that future charges would be kept under control. What will happen if Heathrow cannot commit itself to the longer period that the Secretary of State has just thrown into the mix, and what will he do to ensure that there is more transparency on new flight paths? Finally, given the UK Government’s failures to date and their defeats in court in relation to air quality, what will be done to ensure that air quality impact assessments are robust and that the correct control measures are introduced?
The hon. Gentleman asked about the protection of slots. We are considering what is the best mechanism. It seems that the public service obligation mechanism may be the best, but I want the most robust legal mechanism to operate by the time we reach the development consent order process, in order to protect the allocation of slots to regional connections in the United Kingdom. I do not want, and will not accept, circumstances in which slots somehow disappear and are allocated to a long-haul route rather than a UK route. This must be a project that benefits the whole United Kingdom. As for passenger numbers, our forecasts show that virtually all regional airports will continue to grow, and I expect the hon. Gentleman to see growth at Scottish airports as well as on routes to and from Heathrow.
The hon. Gentleman asked about the setting of charges. The CAA sets the charges, and it has absolute regulatory power to set them at the level that is appropriate for the airport. It has the teeth to deliver that at the moment. He asked about the respite issue. Let me make it clear that the night flight ban is an absolute requirement. We would reconsider that only if both the airport and the local communities agreed that something different should be done. The local communities would have to come back to us, with representatives of the airport, and say, “We would like to do something slightly different.” From the Government’s point of view, the ban is a non-negotiable element.
As for the hon. Gentleman’s final question, given that there are opponents of the scheme, I think it highly likely that it will be challenged in the courts. We have done exhaustive work, and there is a huge amount of material for the House to consider. We are following a statutory process, and only if there is a supportive vote in the House of Commons can the project go ahead. I hope that that is enough to set the project on the right path.
As for the public service obligation process, we will introduce the strongest measures to ring-fence those slots. We will ensure that they cannot simply be taken away, and that should mean that they must be provided at a cost that is affordable for UK domestic aviation. If routes that are strategically necessary for the United Kingdom require PSO support financially, I have no doubt that this Government, and future Governments, will wish to ensure that those routes are provided for as well. We already apply that to some key routes.
On the hon. Lady’s comments about access to the airport, I have just given a firm commitment that we should deliver a package as broad as that to support this. One Select Committee recommendation was to strengthen the wording about western and southern rail access, and that has happened; we are very committed to both of those. This is a broad-ranging package that will transform surface access to Heathrow.
On the planning process, we think it is better that decisions on smaller expansion projects—typically under 10 million passenger expansions—are taken locally in full light of the impacts on local communities, both positive in terms of the economic generation but also other impacts on communities around them. Where a project is bigger than that, we think we should continue to use the NPS process; we think that provides the right balance, ensuring that local decisions are taken about projects of an appropriate size, but that if a future project is on a much more substantial scale this House continues to play the part it does today.
I thank the Secretary of State for his specific reference to Newquay airport and for his commitment to ensuring that slots are available for regional airports. In that vein, does he agree that a direct link from Newquay to Heathrow would offer huge opportunities for greater exports from Cornwall and for inward investment into Cornwall? I ask for his support to ensure we can achieve that.
I thank the Secretary of State because, as a member of the Transport Committee, it is a delight for me to see the Committee, across party, collaborating with the Government—I think that this is the best of it. Our recommendation 22 dealt with the Lakeside Energy from Waste plant. Will he confirm that there is still a commercial opportunity for a more up-to-date waste management capability to be purchased? That is the only recommendation that has not been followed by the Government.
What difference does my right hon. Friend think this decision will make to our international trading prospects and to UK steel supply chains? Let me also tell him that in Corby we certainly want one of these new construction hubs.
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