Lords statement on Airports National Policy Statement - June 6

Lord Tunnicliffe (Lab) 

My Lords, I thank the Minister for repeating the Statement and for providing the extensive documentation that went with it. Labour’s position on Heathrow was set out by my honourable friend Andy McDonald MP in the other place yesterday:

“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”.—[Official Report, Commons, 5/6/18; col. 172.]

Labour’s decision will emerge in due course.

The Statement says:

“To ensure fairness and transparency we appointed an independent consultation adviser, the former Court of Appeal judge, Sir Jeremy Sullivan”.—[Official Report, Commons, 5/6/18; col. 169.]

I invite the Minister to set out in a little more depth what the role of that individual was and whether it will continue into the future.

I turn to the Government’s response to the Transport Committee’s report. Recommendation 2 of that report says:

“We recommend that both Houses of Parliament allow the planning process to move to the next stage by approving the Airports National Policy Statement, provided the concerns we have identified later in our Report are addressed by the Government in the final NPS it lays before Parliament”.

Does that mean that we will have a debate in this House on a divisible Motion?

Turning back to the Statement, it says:

“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”.—[Official Report, Commons, 5/6/18; col. 169.]

For the avoidance of doubt, I will tell your Lordships that the 25th recommendation was recommendation 22, which was about an incinerator. Does “acted upon” mean “We have agreed with the recommendation”? Clearly, it does not. The committee’s recommendation 19 is that there should be a seven-hour noise ban at night and the Government have responded by saying, “No, you will get only six and a half”. I have done my best to try to understand the response to the committee, which is vague and, at times, woolly.

On capacity, the Statement says:

“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”.—[Official Report, Commons, 5/6/18; col. 169.]

That makes it sound like thousands. In fact, the committee’s report says:

“The NPS states that the NWR scheme is ‘expected to lead to more long-haul flights and connections to fast-growing economies’. The DfT’s forecasts show that, at the UK level, the NWR scheme will offer one more destination overall to emerging and fast-growing economies when compared with no expansion”.

One seems a rather modest number.

The Statement touches on savings. It says:

“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”.—[Official Report, Commons, 5/6/18; col. 170.]

Is this saving coming from the mooted scheme, which I believe Heathrow is consulting on, to reduce the length of the third runway from 3.5 kilometres to 3.2 kilometres? If it does, will there be any significant operational impact of that reduction? When, many years ago, I was privileged to be a co-pilot on 747s, 2,500 metres seemed enough, and certainly many of the operations presently at Heathrow require nothing like 3,500 metres. Given how expensive the M25 issue is to this scheme, are further reductions to the runway length being considered?

We increasingly appreciate the importance of air quality, as well as its fatal consequences. What is the commitment on air quality? There is a commitment in the Statement but there was another in the Government’s response to the Transport Committee, which said very solidly:

“No scheme would be allowed to proceed if it did not comply with air quality obligations”.

Can the Minister flesh out what those air quality obligations are?

On noise, once again the Statement is fairly bullish. It says:

“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”.—[Official Report, Commons, 5/6/18; col. 170.]

That may be, but Heathrow Airport Holdings Ltd has recently proposed a cap of £3,000 on any insulation project. Anybody who has their house insulated against noise knows that that is a trivial sum. Can the Minister confirm that there will be no cap and that Heathrow will pay what it takes to achieve the appropriate levels of noise insulation?

It is a shame to see that the references to the community came right at the end of the document. It is the community that will be very impacted by this scheme. Towards the end of the Statement the Secretary of State said:

“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”.—[Official Report, Commons, 5/6/18; col. 170.]

Can the Minister set out what powers the independent chair will have? Will she in fact be acting as something like a tribunal and able to direct Heathrow in disputes to provide the appropriate money?

Baroness Randerson (LD) 

My Lords, this Statement has an air of Alice in Wonderland about it. Governments have been considering this problem for 20 years but I am afraid that the question is out of date, and so is the answer. Hub airports are no longer the growth area in aviation; the growth area is now in direct long-haul flights. The idea of concentrating ever more development in the overcrowded south-east will, the Government say, benefit other parts of the UK as well. Yet the report by the New Economics Foundation, Flying Low, shows that a new runway at Heathrow will cost regional airports 14 million passengers a year. It will harm them, not benefit them.

The first lack of reality is on the timescale, since 2026 is ridiculously optimistic. The idea that you are going to build a runway as well as demolishing 800 houses, moving an incinerator and dealing with the public inquiry, with development consent and—I am fairly certain—with challenges in the courts from local councils suggests to me that the Government do not have realistic expectations in that regard. This is important because it will have a big impact on the ability for any airport development to help our trade situation. There is also a level of fictional economics, which is that the Government have assigned this a zero cost by saying that it is a private development. Can the Minister clarify her attitude to Transport for London’s estimate of a £6 billion cost to the public purse for public transport? Who will pay for the cost of the disruption to the M25 and M4?

I greatly regret that there is a very brief paragraph on air quality. We were hardly aware of emissions issues when this problem was first investigated. Can the Minister provide us with more detail on how this development will enable the Government’s compliance with international obligations? Will she particularly address the issue of surface transport access and surface transport within the airport?

This is supposed to be a national statement yet there is only one brief paragraph in it referring to anywhere other than the south-east of England. How do the Government intend to achieve their promise of supporting other airports to make best use of their runways? Is that a concrete promise of support or is it simply wishing them well in the process? Liberal Democrats believe that the Government should be using airport development as a springboard for the development and prosperity of the north and the Midlands. They should be spreading prosperity across the whole country.

Finally, I warn everyone who is interested in this to look carefully at the wording in the Statement, especially that on page two. All the reassurances are couched in weasel words.

“We expect up to 15% of slots”,

will “facilitate domestic connections”. What does that promise to other parts of the UK? The Government expect,

“up to £2.6 billion … compensation”,

to be paid. They expect not at least £2.6 billion, but up to that figure. They,

“expect … a six-and-a-half hour ban on scheduled night flights”.—[Official Report, Commons, 5/6/18; col. 170.]

What exactly are the guarantees, not the Government’s expectations, on compensation and night flight bans?

Baroness Sugg 

My Lords, I will attempt to get through all the questions, but if I do not I will follow up in writing. The noble Lord, Lord Tunnicliffe, asked about the consultation adviser Sir Jeremy Sullivan. He reviewed the Government’s consultation process and provided challenge to Ministers and officials to ensure that it was of a high standard and produced two reports, which have been published. However, the role was on the government consultation, so it has now been completed.

On the Transport Select Committee comment on approval of the NPS, noble Lords debated the draft NPS on 15 March and the formal scrutiny period ended on 23 March. The proposed airports NPS needs approval by resolution of the House of Commons before it can be designated. This House has an agreed process for national policy statements, which is laid out in the Companion, and that is what we are following. Any further debate in this House will, of course, be a matter for my noble friend the Chief Whip.

On the Transport Select Committee’s recommendations, as the noble Lord pointed out, we agree with what it is seeking to achieve in 24 of the recommendations. Several of those recommendations will be addressed at a later stage through the development consent order, for example, or by other means, such as the regulatory framework. We have published a detailed response setting out our approach for each of those recommendations.

The noble Lord was right to point out that for long-haul flights there are net additional emerging market destinations by 2050, and emerging markets are a subset of the long-haul group. It is often more helpful to consider destinations served on at least a daily basis, as that frequency is especially important to business passengers. The north-west runway scheme would lead to an additional 14 long-haul designations being served daily by 2040.

Our analysis demonstrates that the scheme can be delivered without impacting on the UK’s compliance with limits set out in the EU ambient air quality directive. However, it is not for the NPS to set out the legal obligations in detail.

On community compensation, particularly for noise insulation, the current public commitment is to contribute up to £3,000 for noise insulation. That commitment will be examined during any planning process which follows the designation, if it happens, of the NPS. The NPS makes it clear that the Secretary of State will consider whether the applicant has put the correct mitigations in place, at least to the level committed to in the Heathrow Airport public commitments, before finally agreeing.

On community engagement, Rachel Cerfontyne has been appointed to the Heathrow community engagement board. She was previously at the Independent Police Complaints Commission—the chair has no powers, per se. The role is as more of an advocate. Although independent, she will obviously have connections with senior levels at DfT and will help to influence where necessary. I met her recently, and I believe she will do an excellent job of holding Heathrow to account.

I turn to the points raised by the noble Baroness, Lady Randerson. On the question of hub status, we think it gives us the best of both worlds. A large hub airport can compete for transport passengers to provide the connectivity that the UK needs while at the same time enabling growth for other airports around the UK. On timing, obviously we will be working closely with the developer should the NPS be designated. We have had the timing independently and expertly appraised, and as things progress we will be working very closely on that. On costs for surface access, the applicant would pay in full the cost of any surface access required purely for airport expansion. If there are other benefits, the question of how those schemes are funded will be discussed.

To return to air quality, we have always been clear that development consent will be granted only if the air quality obligations are met. The environmental assessment and mitigations proposed by the airport will be carefully scrutinised, independently and in public, before any decision is made on whether to grant the development consents. The NPS outlines some of the measures that Heathrow may adopt to demonstrate these requirements, including the potential emissions-based access charge, the use of zero-emission or low-emission vehicles and an increase in public modes shared by passengers and employees.

On domestic connectivity, one of the reasons why the Government chose the north-west runway is that we fully recognise the importance of air services to everyone across the UK. The Secretary of State set out his ambition for 15% of slots from the new runway to be used for domestic routes, and we expect the majority of those domestic routes to be commercially viable. I know Heathrow is already in discussions with many airports across the country on that. We think that in the first instance it is a commercial decision for airlines, and we will hold he airport operator to account on how it has worked constructively with airlines and regional airports to protect and strengthen the domestic connections. Heathrow Airport Limited has already set out a number of pledges to support domestic connectivity, including financial support for the new routes, but if those measures do not meet our expectations, the Government can take action where appropriate to secure routes through the public service obligations.

I hope I have got to every point. If I have not, I will follow up in writing. The noble Lord, Lord Tunnicliffe, referred to the Labour Party’s four tests: meeting climate change obligations, protecting air quality, supporting growth across the country and addressing noise issues. I hope the noble Lord and his party, once they have read through the documents, will agree that the revised NPS meets them.

Lord Brabazon of Tara (Con) 

My Lords, I commend the Government on finally making this decision. As one of my noble friend’s predecessors, albeit 26 years ago, I can confirm the remark that the issue has been debated for half a century. I was not there for all that half a century, although my noble friend Lord Spicer was there for part of it. The decision is the correct one. Heathrow is the only answer. It is all very well talking about putting other runways elsewhere but you need the hub connectivity that Heathrow will give. Whatever the noble Baroness on the Liberal Benches says about hubs, they are absolutely essential: a proper hub gives people in this country the ability to fly to more destinations around the world, and this will do much to enhance that, so I commend the Government on having made this decision.

I have a question for the Minister about the night ban. I declare an interest as someone who lives in west London underneath the flight path into Heathrow. I live slightly further away than I did before but I am still affected by it. The noble Baroness, Lady Randerson, queried the word “expect” with regard to a six and a half hour ban. I hope we will be getting such a ban, if not a longer one, and that it really will be a ban. At the moment you are not allowed to fly within certain hours, except that there can be half a dozen or so in the morning. When they start coming in at 5 am, that is what becomes really irritating. I hope my noble friend can confirm that this will be a real ban and that there will be no flights, even emergency flights, between those hours.

Baroness Sugg 

I thank my noble friend for his support on this decision. As he said, he is a predecessor of mine, and I am sure that he was discussing it then, so it is great to take this step of laying the final national policy statement. We need to act now. Our latest analysis shows that all five London airports will be full by the mid-2030s, and we are losing ground to our competitor hubs in Europe and the Middle East.

The night flight ban will be at least a six and a half hour ban on all scheduled flights. It could be more than that, with predictable respite. Once designated, that will go to further consultation with local communities to agree the exact detail.

Lord Soley (Lab) 

My 20-year campaign to expand Heathrow covered the period when I was a Member of Parliament for two west London constituencies. Of course, some people are vocally against it. I have to say that they are frequently the people who fly more often, which came out in a number of constituency meetings that I did in the area. An awful lot of people who do not speak out clearly are desperately in favour because of high-quality jobs. When I spoke in schools in the area, teachers were often against it, for understandable reasons—because of the noise—but when you asked the children how many of them had family or friends who worked at the airport or in an airport-associated job, nearly all of them did. Please ensure that we take account of the needs of those local people, too.

The regions are incredibly important. We cannot expect the regions of England to do well unless they are linked into the hub airport. If all the other countries have hub airports and are developing hub them, there is a common-sense question: why is that? The common-sense answer is because you need interchange—interchange for Scotland, Wales, the south-west of England, which is often underestimated. They need links too. Please will the Minister pursue this and take into account the crucial importance of jobs in south-west London and related areas?

Baroness Sugg 

I thank the noble Lord for his supportive comments. This expansion will absolutely deliver jobs for the local area: I think that the latest figure is 114,000 and 5,000 apprenticeships, which will obviously be welcome for young people. We have not underestimated the potential impact of this decision on local communities, or the importance of listening to them and doing it in the right way. I personally met some of the local groups which have been campaigning hard on this issue and saw at first-hand their strength of feeling. The NPS commits up to £2.6 billion towards compensation, noise insulation and improvements to public communities but, as the noble Lord said, expansion has support from local communities as well as opposition.

Baroness Kramer (LD) 

My Lords, I declare an interest, in that I live under the flight path and belong to many of the community organisations that the Minister will have met. I am appalled by this proposal, as will be the majority of the community where I live and the surrounding communities. Will the Minister confirm that it is clear in the report that daytime respite periods will be shorter under this plan? It says in parenthesis that they will be cut. Perhaps she will confirm that. That matters because there may be money for insulation, but that is not very useful for children who want to play outside or for people who want to walk outside or sit in a garden. Perhaps she will tell us the number of hours of peace that we are about to lose every day.

To answer the question of the noble Lord, Lord Brabazon, airlines will be permitted to run a full service from 5.30 in the morning under the new plan. The night-time ban is six and a half hours: 11 pm to 5.30 in the morning. Currently, they cannot run a full service until 6 am. That is done because Asian Governments are concerned that their residents are being disturbed by departures, so instead our local residents are to be disturbed by arrivals.

Will the Minister confirm what is clear to me from the report: that the required noise level that the airport has to achieve is that in existence in 2013, giving up five years of improvement? All the surface transport mitigations listed are those under way or in place to deal with current congestion, current overcrowding, the air quality problems of the current airport, and the forecast growth in demand in the local community. There is no additionality to deal with 41 million people, a doubling of freight and no indication of who will pay.

On air quality, there are just vague aspirations without any guarantees, clarity or targets. Will the Minister confirm that?

Baroness Sugg 

My Lords, on the respite periods, the final flight paths obviously have not been confirmed yet, and I understand why there is frustration about that. The proposals to change airspace design have to follow the new airspace change process, which will be done in the coming years, in close consultation with the community.

On the 6.5 hour ban, it has not been decided between periods of 11 pm and 5.30 am exactly where that will go. As I say, that will also be done in consultation with local communities. We think that there could be more respite than that, and predictable respite too. Obviously, with a third runway, there will be more aircraft movements in the sky, so I acknowledge that there will be more noise. We have set out a comprehensive package of compensation, which includes noise insulation and improvements to public amenities.

On the surface access point, there is lots of investment to come on that. I would mention Crossrail, HS2 and Southern Rail and western rail access. There are clear commitments to 50% of public transport use by 2030 and 55% by 2040. Where that is directly to deal with expansion, it will be paid for by the developer.

Lord Craig of Radley (CB) 

My Lords, I thank the Minister for repeating the Statement, which talks about ensuring timely delivery. One aspect of this will be a large number of legal challenges. What powers do the Government have, if any, to ensure after due process that this very expensive and ambitious programme will continue and be completed on time?

Baroness Sugg 

My Lords, the noble and gallant Lord is quite right to point out that there may well be judicial reviews around this. Obviously, we are expecting that. The Airports Commission asks that the runway is delivered by 2030. As I said, Heathrow is working to 2026, and we have independent appraisals on that and will work closely with it. We will of course follow correct judicial processes on this, but we will work with Heathrow to get this delivered for 2026, as I say.

Lord Swinfen (Con) 

My Lords, what consideration is being given to using Manston Airport on the Isle of Thanet, particularly for freight, to relieve both Heathrow and Gatwick? I know that it is some way from London, but it is easily reached by road and rail, both of which run alongside the airport, which has the longest runway in Europe. Aircraft can go straight out over the North Sea and down the Dover Strait and into the English Channel.

Baroness Sugg 

My Lords, I know that there are some very interesting proposals around Manston Airport. One of the reasons why we chose Heathrow was because of its freight capacity and the expansion will deliver doubling of freight on that. Alongside that, we are already full at Heathrow, and expect to be full at other airports very soon. Alongside the laying of the final NPS, we announced the policy on making best use of existing capacity to ensure that other airports can do that.

Lord Davies of Stamford (Lab) 

My Lords, it is extremely good news that this project is finally going to go ahead but I fear that, as the noble Baroness, Lady Randerson, said—and I think that the Minister has already acknowledged the point—we may run into quite a lot of obstacles and sources of delay. If we do, I hope that the Government will consider proceeding by some accelerated legislative process to carry this through without undue delay. Undue delays in infrastructure projects are surely a great national economic handicap which we have had for some time, but will the Minister agree that this is a particularly egregious case? We have had delays of at least eight years, due to indecision, vacillation and the setting up of quite otiose inquiries, when their results were already known in advance, merely to delay the outbreak of conflict within the Conservative Party and disputes between that party and the House of Commons. That is a very bad example. I think that future generations and the international world as a whole would have noticed that. Does she accept that, had the last Labour Government won the 2010 general election—I declare my interest: I served in that Government, but I had nothing whatever to do with civil aviation or airports—this new runway would have already been built?

Baroness Sugg 

My Lords, I welcome the noble Lord’s welcoming of the NPS. He is quite right to point out that this has taken some time and has been the subject of many conversations, which is why we were so pleased to be able to lay the final NPS yesterday. We absolutely need to get on with this. As to whether this would have happened should the Labour Government have won in 2010, I am sure a lot of things would be different, but I am not sure whether the runway would now be built.