Contents
SASIG 2013/14 Meeting Dates
Regional News
Traffic Statistics
Industry News
European News
Parliamentary News
House of Commons Questions
House of Lords
SASIG 2013/14 Meeting Dates
28 June 2013
25 October 2013
7 March 2014
Meetings are held at 11am, Local Government House, Smith Square, SW1P 3HZ, with lunch provided afterwards, location map.
Regional News
20 Jan 2013 – Richmond residents to get the chance in May to vote on future of Heathrow. There will be a Borough-wide ballot in Richmond, in the coming months to measure local residents’ feelings about any potential expansion of Heathrow. Richmond Council says all residents in the Borough will be sent a polling card in April that will ask them to declare their views both on expansion of the airport and the future of night flights. Residents will have 4 weeks to return their ballot vote with a big polling day event being held on 16 May. Information will also be provided at local events, briefings and a manifesto.
19 Feb 2013 – Plan revealed to dismantle planes at Durham Tees Valley Airport. Durham Tees Valley Airport is set to become a centre for the storage and dismantling of unused planes, and recycling parts. The airport has a long runway, enabling it to handle larger planes, and plenty of hangar space.
6 Mar 2013 – London Assembly members told night time landings from west would share aircraft noise burden. Opting to land planes at Heathrow from the west during the night when weather allows would more equally share the burden of disturbed sleep, the London Assembly heard today. Currently, more than 70 per cent of planes landing at Heathrow at night come from the east due to a more favourable wind direction. As part of a Government consultation, it has been suggested that overnight planes should land from the west instead, when weather conditions allow. This would increase noise for 15,000 residents to the west of the airport, but decrease it for around 110,000 to the east.
6 Mar 2013 – A new transport body for Lancashire is to be handed £35m over four years to spend on major road and railway schemes. The county’s three highway authorities, Lancashire County Council, Blackpool Council and Blackburn with Darwen Council have joined forces to create Transport for Lancashire. The chief executives of each council met with the chairman and vice-chairman of Lancashire Enterprise Partnership to form a new committee of its private sector led board. Transport for Lancashire will receive the devolved funding pot from the Department for Transport from 2015/16.
Traffic Statistics
New air traffic forecasts January 2013: Government expects growth in air travel to slow down considerably. The Department for Transport expects the rate of growth in air travel to slow down considerably over the coming decades. Their January passenger forecasts expect demand for air travel to increase by just 1%-3% a year up to 2050 compared to historical growth rates of 5% a year over the last 40 years. The DfT lists 4 reasons for the slow down in growth for air travel: – higher oil prices, an end to the decline in average fares seen in the last two decades, the maturity of the air travel market to and from the UK, and the availability of alternative modes of travel.
Industry News
1 Mar 2013 – Virgin Atlantic reveals new domestic brand. Virgin Atlantic has unveiled more details about its forthcoming domestic flights, which are scheduled to launch at the end of this month. Services will operate under the branding “Little Red”, with flights from Heathrow to Manchester launching on March 31, followed by Edinburgh on April 5 and Aberdeen on April 9. Little Red will offer four return daily services to Manchester, six to Edinburgh and three to Aberdeen.
1 Mar 2013 – Promise of new investment at Stansted airport. Millions of pounds in investment and more choice for passengers were two of the promises made today by the new owners of Stansted airport. M.A.G, which is owned by local councils in the North West, has spent £1.5 billion to acquire Stansted from the owners of Heathrow. MAG already runs three other airports including Manchester making them the country’s biggest UK-owned operator.
4 Mar 2013 – Confederation of British Industry (CBI) – Squeezed airports risk UK missing out on billions of pounds in trade. A new report, Trading Places, published by the Confederation of British Industry (CBI) suggests that adding just one additional daily flight to each of the eight largest high-growth markets would increase UK trade by up to £1billion a year, with every increase in 1000 passengers generating up to £920,000 in new business.
5 Mar 2013 – Campaign takes off to promote Bristol-US flights via Dublin. An advertising campaign encouraging West business travelers to fast-track their journey to the US through Dublin Airport has been launched by Bristol Airport and Aer Lingus Regional. Passengers on Aer Lingus Regional services from Bristol can complete pre-clearance and customs at Dublin ahead of their onward journey to the US. As a result, Bristol passengers are treated the same as domestic passengers when they land in the US and so avoid security delays of up to two hours at major American airports such as New York, Boston, Chicago and Orlando. Ireland is the only European country to offer US passport and customs pre-clearance. The campaign includes outdoor, press and radio advertising across the West of England
European News
26 Feb 2013 – European Parliament’s Environment Committee rejects allowing more offsets for aviation industry. The Committee has rejected a proposal related to the offset limit for airlines. This would have allowed intra-European flights to offset nearly 100% of their reduction obligations. As the proposal has been rejected, rather than 100%, only 15% of aviation allowances can be offsets.
Parliamentary News
5 March 2013
Alternative funding mechanisms could be found to fund vital transport infrastructure projects in London, MPs heard today.
Responding to a debate on Crossrail 2, Stephen Hammond, Transport Minister said: “The future of London’s economy will depend on transport systems, and the right hon. Gentleman is right to say we must think about what London needs in the long term to meet the demands of the economy, as well as of the people who live here. A modern, customer-focused transport system should meet that rising demand… The debate about Crossrail 2 is an opportunity to consider how to meet some of the challenges.”
He paid tribute to the work of Transport for London (TfL), London First and Labour Policy Review Adviser for Industrial Strategy Lord Adonis on the report, also noting the support of the Mayor of London for the idea.
On the extension of the proposed Crossrail 2 line to Stansted Airport, the Minister said, “That should be an option for both TfL and the Mayor to think about in the planning stages. I hope that they will do so, and that they will work in conjunction with Network Rail… It would be inappropriate for the Mayor to think about connecting the line to Stansted without making sure that he was working in conjunction with Network Rail.”
Mr Hammond added, “The issues for the Mayor and TfL to consider carefully include the scheme engineering design and technical design, the consultation process and the views of those who will benefit, and the route alleviation procedures. They will also need to consider how the route will be funded. Those are clearly some of the challenges. For my part I reaffirm that the Government will work with TfL to safeguard the route for Crossrail 2, which is scheduled to start later this year.”
“The business case must be developed and it is essential, therefore, that the Mayor and TfL show that the efficiency of the spending that they are using in this spending round, and in this spending review period, can be continued,” the Minister said.
Mr Hammond added, “Any proposal for London Underground to extend the Bakerloo line further in south-east London is a matter for the Mayor and TfL.
Concluding, he emphasised, “The Government are clearly committed to supporting transport in London. Of course, it should not be the default position that the Government fund everything. In a world of constrained public sector resources, it has been recognised, rightly, that there is a role for alternative financing mechanisms, such as tax increment financing and the community infrastructure levy.”
Speaking for the Opposition, Yvonne Fovargue, Opposition Whip said, “Crossrail 2 has the potential substantially to increase capacity, relieving congestion on some crowded sections of the Underground, particularly on the Victoria, Northern and Piccadilly lines.”
She questioned where the funding for the project would come from, saying, “It has been suggested that the funding stream from Crossrail 1 could be redirected to Crossrail 2, but has not that money already been allocated to HS2? Obviously HS2 and Crossrail 2 cannot be funded at the same time with the same moneys. Could businesses make a contribution?”
Concluding the Shadow Minister said, “It is vital that essential transport projects in other parts of the country should not be adversely affected by the concentration of funding in one geographical area, despite that area’s undoubted importance.”
Bringing the debate, David Lammy (Labour Party; Tottenham) said, “Even in 2013, my constituents in the Northumberland Park ward of Tottenham, which has among the highest unemployment rates in London, are served by just one train an hour on weekdays and no trains at all at weekends.”
He added, “London’s viability as a global centre is already being undermined by a failure to resolve questions over its airport capacity, but the unspoken fact is that we are soon to lose out to our competitors because of what happens to those passengers the minute they leave the terminal building, wherever the new airport capacity is located.”
Projections from the Mayor of London’s plan forecast that the capitals population would break 8.5m by 2027, with an extra 700,000 daily commutes expected as the number of jobs increased, the Labour MP said.
Crucially, David Lammy emphasised the impact such growth would have on the capital’s key transport networks, claiming, “What capacity gains are made by Crossrail 1, the tube updates or the Thameslink programme are set to be wiped out by 2030. By 2031, overcrowding on network rail routes into London and London underground lines will be at the same utterly unacceptable levels as today.”
In response, he urged the Government to review the report published by Lord Adonis and London First published last month detailing plans for a new line linking south-west and north-east London dubbed Crossrail 2.
He pointed to a ComRes poll that showed that 95 per cent of London’s businesses believed that cuts to transport spending would harm London’s businesses in the long run.
David Lammy affirmed the improved connections for north-east and south-west London, as well as pointing to the potential to develop the line to Stansted Airport to complement the express service.
House of Commons Questions
Goldsmith – Crossrail Line (Stansted Airport)
1 March 2013
Zac Goldsmith, Conservative, Richmond Park: To ask the Secretary of State for Transport if he will commission research on extending the proposed route for Crossrail 2 to Stansted Airport.
Stephen Hammond, Transport Minister: The Government has made no decision in relation to Crossrail 2, and the scheme is currently unfunded. The constraints on public finances mean that the Secretary of State for Transport has no immediate plans to commission research into extending the proposed route for Crossrail 2 to Stansted airport. The Department continues to work with Network Rail and the rail industry on its long-term planning process which is considering future rail services to Stansted and other major airports.
Jamieson – Air Passenger Duty (Banding)
1 March 2013
Cathy Jamieson, Shadow Economic Secretary to the Treasury:To ask the Chancellor of the Exchequer (1) what estimate he has made of the cost of re-banding Caribbean countries into the same band of air passenger duty as south Florida destinations in the US; (2) for what reasons Russia has been split into two for the purposes of charging air passenger duty, but not the US; (3) what estimate his Department has made of the required level of air passenger duty in each band under a two band system, assuming revenue neutrality for the consultation on reform of air passenger duty in 2011.
Sajid Javid, Economic Secretary to the Treasury: Air passenger duty (APD) is intended to be as simple as possible to administer. For this reason the distance-based banding within it generally reflects international aviation codes used by the airline industry. These codes are based on national territories, and as such it is straightforward to base APD on countries, using capital cities as a proxy. In the case of Russia, codes do distinguish between the Eastern and Western halves of the country, and the tax has therefore been designed to incorporate this.
Changes to the banding structure of APD were considered as part of the consultation launched at Budget 2011. Estimates of the required level of APD rates to deliver a broadly revenue neutral move to a two band system can be found in the 2011 consultation document, which is available online here:
http://cdn.hm-treasury.gov.uk/2011budget_airpassenger.pdf
No estimate of the cost of re-banding Caribbean countries into the same band of APD as south Florida destinations in the US is available.
5 March 2013
Cathy Jamieson, Shadow Economic Secretary to the Treasury: To ask the Chancellor of the Exchequer what assessment he has made of the increasing cost of air passenger duty on all diaspora communities in the UK such as those from African and Caribbean communities; and what plans he has to address this.
Sajid Javid, Economic Secretary to the Treasury: The Government has limited the rise in air passenger duty (APD) to inflation over the period 2010-11 to 2012-13. Budget 2012 set out rates from April 2013, which will also only rise in line with inflation, ensuring that level of APD will again remain constant in real terms. The Government has also taken other action to help reduce the cost of living, including announcing successive increases in the personal allowance. As a result, over 2.2 million individuals with low incomes will be taken out of income tax altogether.
Donohoe – Air Passenger Duty (Tourism)
5 March 2013
Brian Donohoe, Labour; Central Ayrshire: To ask the Chancellor of the Exchequer (1) what assessment he has made of the potential effect on tourism of abolishing air passenger duty; (2) what assessment he has made of the potential effect on the aviation industry of abolishing air passenger duty.
Sajid Javid, Economic Secretary to the Treasury: The Chancellor keeps all taxes under review and considers them in the round. Budget 2012 set out air passenger duty rates from 1 April 2013, which will rise in line with inflation.
Eagle, M – High Speed 2 Railway Line
6 March 2013
Maria Eagle, Shadow Transport Secretary: To ask the Secretary of State for Transport what discussions he has had with local authorities on the introduction of paving legislation on High Speed 2.
Simon Burns, Transport Minister: The content of future legislative sessions remains unconfirmed until the time of the Queen’s Speech and has not formed the basis for discussion between the Secretary of State for Transport and external groups or stakeholders.
6 March 2013
Brian Donohoe, Labour; Central Ayrshire: To ask the Secretary of State for Transport if he will make an estimate of the cost to the UK economy of a mainland European airport becoming the hub for UK flights.
Simon Burns, Transport Minister: The Department does not currently hold such data and has no plans to undertake such work.
However Government is determined to maintain the excellent international connectivity the United Kingdoms currently enjoys. For this reason we have established the independent Airports Commission under Sir Howard Davies to develop recommendations for a lasting solution to maintain the United Kingdom’s global hub status. As part of its work the Airports Commission will consider the full range of economic issues around hub airport status.
Goldsmith – Crossrail Line: Stansted Airport
7 March 2013
Zac Goldsmith, Conservative; Richmond Park: To ask the Secretary of State for Transport pursuant to the answer of 28 February 2013, Official Report, column 460, on Stansted airport, if he intends to discuss with the new owners of Stansted airport the extension of Crossrail to Stansted.
Simon Burns Transport Minister. Under devolution, the Mayor is responsible for transport in London and for deciding how to spend Transport for London’s budget, including on projects such as Crossrail.
However, I have no doubt that the Secretary of State for Transport, my right hon. Friend the Member for Derbyshire Dales (Patrick McLoughlin) would be happy to discuss any relevant transport issues that the new owners of Stansted airport might raise when they next meet.
House of Lords
Berkeley – Isles of Scilly (air terminal building at St Mary’s Airport)
7 March 2013
Lord Berkeley, Labour peer: To ask Her Majesty’s Government whether the Civil Aviation Authority will require the air terminal building at St Mary’s airport in the Isles of Scilly to be moved before they will approve the operation of the European Geostationary Navigation Overlay Service instrument landing system.
Earl Attlee, Spokesperson for Transport: This is a matter for the Civil Aviation Authority (CAA) as the UK’s independent aviation regulator. I have asked the chair of the CAA to write to the noble Lord.
7 March 2013
Lord Bradshaw, Liberal Democrat peer: To ask Her Majesty’s Government, further to the answer by Earl Attlee on 13 February (Official Report, col. 655), what assessment they have made of whether the Civil Aviation Authority could play a role in the Heathrow Air Transport Movement Demand and Capacity Balancing Group in agreeing contingency plans to deal with forecast disruption to travel via Heathrow Airport.
Earl Attlee: The Department for Transport and the Civil Aviation Authority have no role in determining the composition of the Heathrow Airport Demand and Capacity Balancing Group. This is a matter for the aviation industry. The Civil Aviation Act 2012 received Royal Assent in December 2012 and will allow the Civil Aviation Authority, from April 2014, to place obligations within airport operators’ licences to develop operational resilience strategies, which could include adverse weather, in conjunction with all airport service providers.
The Parliamentary information in this Bulletin is sourced from De Havilland Information Services plc.