Contents
SASIG 2014/15 Meeting Date
Regional News
Industry News
European News
Parliamentary News
Government News
House of Commons Oral Question
House of Commons Statements
House of Lords Oral Question
Media News
SASIG 2014/15 Meeting Date
6 March 2015
Meetings are held at Local Government House, Smith Square, SW1P 3HZ, location map.
Regional News
10 November 2014 – Contractor Henry Boot Construction has begun work on the new Doncaster International Business Park project at Doncaster Sheffield Robin Hood Airport. The contractor has started construction after winning a contract to carry out the first phase of the development – known as Fountain Court Workpods – in a competitive tender for Leeds-based developer Prospect Property Group.
11 November 2014 – The Managing Director of Stansted Airport Andrew Harrison has written to the Airports Commission, along with regional business leaders, to state the case for expansion of the site. Mr Harrison said a ‘do minimum approach’ would not be acceptable when planning for the airport’s future.
12 November 2014 – Representatives of Heathrow Airport admitted their communication about airspace trials could have been better at a public meeting at Teddington Baptist Church. The meeting was reportedly attended by around 300 people, including local councillors.
11 November 2014 – Junction 10a of the M1, near Luton Airport, will be closed over the next two weekends for road works, as part of Luton Borough Council’s £30m improvement scheme, supported by the Government’s Regional Growth Fund. The aim of the work is to tackle queues and congestion experienced at the junction by widening the M1 Spur Road and New Airport Way (A1081) to three lanes in each direction.
13 November 2014 – Norwich International has become only the fourth airport in the UK to transition to the European Aviation Safety Agency (EASA) aerodrome regulatory regime, which all European airports must adhere to by December 2017. EASA is the centrepiece of the European Union’s aviation safety system, working alongside the European Commission and the National Aviation Authorities (NAAs) to improve standards. The Agency develops common safety and environmental rules, monitors the implementation of standards through inspections and provides the necessary technical expertise and training to support the system. All UK Aerodromes open to public use and which serve commercial air transport and where operations using instrument approach or departure procedures are provided fall within the scope of the EASA regulations, which came into force on March 6, 2014.
Industry News
4 November 2014 – An initiative to improve ‘crew resource management’ (CRM) in the aviation industry has been launched with the release of open-access training videos aimed at tackling ‘human factors’ issues in the cockpit. CRM is the name given to the training techniques used to address potential situations where human error may cause aviation incidents or accidents. The release of the videos by the UK Civil Aviation Authority (CAA) has coincided with an industry seminar taking place at Luton Airport for senior flight instructors on the issue of CRM training. The three case-study videos have been developed to highlight some of the main human factors concerns currently facing the aviation industry, such as ‘automation complacency’ and ineffective monitoring – both phenomena being the result of an over reliance on technology to the detriment of ‘hand flying’ skills. The momentum behind the production of the videos, and the need for a new approach to CRM training in the commercial air transport sector in general, came from research carried out by a panel of senior CAA and airline flight instructors and examiners. Analysis of 250 accidents involving large public transport aircraft, for example, shows that 28 per cent of fatal accidents worldwide include flight handling issues and 24 per cent include inappropriate action by crew (see CAP1036, Global Fatal Accident Review for more information). An airline’s CRM training is now therefore a vital part of its overall safety strategy. The videos are available on the CAA’s YouTube channel here and cover key CRM learning points through reconstructions of real incidents. Detailed analysis explains how the incidents could have been avoided if CRM techniques had been employed. The videos can also be viewed online directly from the CAA website here. The CRM panel’s full recommendations can be found here.
10 November 2014 – International Airlines Group has seen a 10.3 per cent increase in passenger numbers during October year-on-year. Year to date figures have also seen an increase of 8.8 per cent compared to last year, with the highest growth among routes in Europe.
10 November 2014 – Airline operator Flybe is now offering single tickets to the US and Canada from its regional hubs through a tie-up with Aer Lingus. The ‘code share agreement’ means passengers flying from Southend, Southampton, Inverness and Exeter can connect with Aer Lingus’ 10 daily transatlantic flights from Dublin to cities including New York, Boston, San Francisco, Chicago, Orlando and Toronto.
10 November 2014 – The aviation economists Oxford Economics have published the report ‘Economic Benefits from Air Transport in the UK’. The reports describes how air transport to, from and within the UK creates three distinct types of economic benefit – these are described under the three headings: ‘Aviation’s economic footprint’; ‘consumer benefits for passengers and shippers’ and ’enabling long-term economic growth’. The report argues that typically, economic assessments of aviation focus on the ‘economic footprint’ of the industry, measured by its contribution to GDP, jobs and tax revenues generated by the sector and its supply chain. But the report authors argue that economic value created by the industry is wider still. They assert that principle benefits are created for the customer, the passenger or shipper using the air transport service. In addition, they argue that the connections created between cities and markets represent an important infrastructure asset that generates benefits through enabling foreign direct investment, business clusters, specialization and other spill-over impacts on an economy’s productive capacity. This report describes these sections in more detail.
- Section 1 analyses the economic footprint of the aviation sector – the airlines, the ground-based infrastructure, aerospace manufacturing and spill over effects on tourism and trade – to quantify the value of its output and the jobs it supports in the UK.
- Section 2 quantifies the benefits of air travel for air passengers and air freight shippers.
- Section 3 examines the way in which the aviation sector supports long-run prosperity: by delivering supply-side benefits through a variety of different channels, which help to increase the economy’s level of productivity, and hence its long-term sustainable rate of growth.
The main findings are:
Aviation’s economic footprint
The aviation sector contributes £52bn (3.4 per cent) to UK Gross Domestic Product. This total comprises:
- £22.3bn contributed through the output of the aviation sector (airlines, airports and ground services, aerospace) itself;
- £16.7bn indirectly contributed through the aviation sector’s procurement from its domestic supply chain; and
- £12.9bn contributed through the wage-financed spending by the employees of the aviation sector and its direct supply chain.
Consumer benefits for passengers and shippers
From visiting family and friends to shipping high value products, the aviation industry is responsible for transporting more than 197 million passengers and 2 million tonnes of freight to, from and within the UK. More than 770,000 scheduled international flights depart the UK annually, destined for over 500 airports in 131 counties. Domestically, over 420,000 scheduled flights provide seats for passengers travelling to UK airports.
The 197 million passengers pay £71.5bn (inclusive of tax), with UK residents paying around £44.4bn. Calculations by Oxford Economics suggest the value of the benefit to travellers from flying, in excess of their expenditure, is worth £35.6bn a year (£22.1bn for UK residents).
Enabling long-term economic growth
The report argues that the aviation industry is responsible for the UK’s integration into the global air transport network, transforming the possibilities for the UK economy by:
- Opening up foreign markets to UK exports;
- Lowering transport costs, particularly over long distances, helping to increase competition because suppliers can service a wider area and potentially reduce average costs, through increased economies of scale;
- Increasing the flexibility of labour supply, which should enhance allocative efficiency and bring down the natural rate of unemployment
- Encouraging UK businesses to invest and specialise in areas that play to the economy’s strengths.
11 November 2014 – Passenger numbers at some of Scotland’s major airports were higher this October than they were in 2013. Aberdeen airport saw an 8.8 per cent rise compared to last year’s figures, whilst Glasgow saw a 2.7 per cent rise – both airports have recently added new international flights to their schedules. Edinburgh airport saw a slight fall of 0.2 per cent compared to last October, although its passenger figures over the previous six months have increased.
11 November 2014 – Heathrow Airport have published their traffic and business commentary for October 2014.
12 November 2014 – Flybe is opening a new base for two aircraft at Bournemouth Airport and will also start flying from Stansted Airport from March 2015. A base is also being re-established at Aberdeen Airport with four aircraft. A new three-year agreement with Manchester Airports Group has also been confirmed. The agreements also locks-in ‘similarly advantageous’ cost certainty for ongoing operations at East Midlands airport and includes Stansted and Bournemouth airports. Flybe has also sold its 60 per cent share in Flybe Finland for €1 to Finnair, and cancelled an order of 20 new aircraft.
13 November 2014 – Stansted Airport have reported that the number of passengers using the airport each year is growing at the fastest rate since February 2005.
13 November 2014 – The Chief Executive of UK Air Traffic Services provider NATS Richard Deakin has urged the European Commission to take a new approach to reforming the continent’s air traffic network. Speaking to European Transport Ministers in Rome, Mr Deakin claimed the benefits of a Single European Sky (the programme designed to modernise air traffic management across Europe) had not yet been expressed in a way would encourage change and that ten years of increasing regulation had not delivered the benefits that airline customers expect.
European News
11 November 2014 – The Spanish Secretary of Infrastructure Julio Gómez Pomar, has said that the privatisation process of the Spanish public body that owns and operates the majority of airports in Spain, Aena, will start again this week. Aena manages 46 airports and 2 heliports in Spain and participates directly and indirectly in the management of 15 more airports around the world. After the company’s presentation to institutional investors was cancelled at the end of October, the Spanish Government decided to call a tender to choose a new auditor to substitute PricewaterhouseCoopers, in order to dispel allegations of conflict of interest.
12 November 2014 – The airline operator Norwegian carried out operations for Norway’s first ever flight with biofuel. The flight from Bergen to Oslo took off with almost 50 per cent biofuel.
12 November 2014 – The airline operator Etihad Airways is set to win conditional EU antitrust approval for its purchase of 49 per cent of the Italian based operator Alitalia. Etihad in turn will reinforce its presence in Europe as it already has minority stakes in Air Berlin, Ireland’s Aer Lingus, Virgin Australia and other airlines.
Parliamentary News
11 November 2014 – The Energy and Climate Change Committee heard evidence this week on linking emissions trading systems. The first session involved a discussion with Manager DSI, Sustainable Development Mechanisms Programme, UNFCCC Secretariat, Niclas Svenningsen. MP’s questioned Mr Svenningsen about the Kyoto agreement, Clean Development Mechanism, New Market Mechanism, Top-down and bottom-up approaches and Carbon pricing. In the second session MPs heard evidence from the Special Representative for Climate Change, Foreign and Commonwealth Office, Sir David King. The session included discussions on Cap and Trade, Cap and trace and carbon tax, UK leadership, COP 21 and US environmental policy. Transcripts of both sessions can be found on the Committee’s website here.
13 November 2014 – The House of Lords Sub-Committee on the Internal Market, Infrastructure and Employment will be taking evidence from the Metropolitan Police as part of a session looking at the role of the police in drone use (Monday 17 November). The witness will be Chief Inspector Operations, Metropolitan Police, Nick Aldworth who is working on the Met Police’s drone strategy. The House of Lords EU Sub-Committee on the Internal Market, Infrastructure and Employment is looking at EU regulation on the civilian use of drones.
Government News
6 November 2014 – The Transport Minister Baroness Kramer has announced the appointment of barrister Keith Richards as the new Chair of the Disabled Persons Transport Advisory Committee. Mr. Richards, replaces Dai Powell as Chair of the group which advises Government on how to improve transport legislation and guidance for disabled people.
10 November 2014 – The Aviation Minister Robert Goodwill has spoken at the Airport Operators Association conference about the sustainability of the aviation industry. He spoke about issues related to the ‘importance of the industry’, ‘airports’, ‘air freight’ and ‘the environment’. A full transcript of the speech is given below.
‘Thank you John. And thank you ladies and gentlemen. It’s a real pleasure to join you here today. And to be invited to speak for the second year. Ed – thanks for your kind words. They were very much appreciated. We in government also value the relationship we have with the AOA. And that close engagement will of course continue.
I’m also in complete agreement about the other point you made in your introduction. Frankly this is not the time or the place to talk about Yorkshire., or its recent triumph at the World Travel Awards where it was named the best destination in Europe. Better than Venice, Paris, or London. Which is – by the way – the second consecutive year that God’s own county has claimed top spot.
Sustainable aviation
The broad theme of this year’s conference is “sustainable aviation.” But what do we mean by that? Over the past decade or two, the phrase has normally been used to refer to the environmental sustainability of the industry. Why reducing the impact of aviation on climate change and communities is key to future growth. And that’s something I’ll be talking about in a minute. But to me the phrase has wider connotations. How to sustain aviation as a competitive, customer-focused industry in a rapidly changing world. So it can continue to support our needs as a country. So it can help drive long-term economic growth. And so it can deliver better services for passengers. That’s how we can ensure the sustainability of aviation.
Importance of industry
Today (10 November 2014) sees the publication of the Oxford Economics Report for the AOA. The report is a welcome addition to our understanding of the hugely positive impact that aviation has on the UK. Its figure for the total contribution of aviation to the UK economy of £22.3 billion is similar to our own. It also shows that there are almost one million UK jobs directly or indirectly supported by aviation. There is hardly a constituency in this country without an aviation business. The aerospace sector generates an annual turnover of £24 billion, of which 70 per cent is exported, helping bring in vital foreign currency. It also employs 100,000 highly skilled British workers and provides the technology, research and training to help the rest of the manufacturing sector thrive. With this government’s support, the UK aerospace sector is the second largest in the world behind the US.
Airports
And of course our airports play an instrumental role in stimulating growth across the UK. Passenger numbers have soared from 104 million in 1990 to 228 million last year. Although the industry has yet to reach the pre-recession height of almost 240 million passengers in 2007. But the market’s returning. Last year UK airports handled 7.8 million passengers more than 2012. With Belfast, Leeds/Bradford, Southend and London City all recording double digit growth.
Demand for low cost flights through regional airports continues to rise. With Ryanair recently reporting bigger profits. And EasyJet carrying 6.6 per cent more passengers over the past year. But it’s not just the core business that’s doing well. I’ve visited around a dozen airports over the past year. Many are pursuing ambitious schemes to expand their businesses. So they’re not just aviation hubs.
They’re also business hubs. Airports like Newcastle and Manchester are developing business parks. While many are upping their game in retailing. Becoming bigger employers. And focal points for local economic growth. Other industries use airports as a benchmark for business diversification. And for engaging with local communities. However, not every airport has done so well.
There are winners and losers in every industry. And I was sad to see the closures of Blackpool and Manston. They were a reminder that despite the growing economy, this is still a competitive, commercial environment. The fixed costs of keeping an airport open remain high, no matter how many customers you attract. So despite the opportunities for diversifying, what’s essential is that airports secure their core business.
Freight
But the good news is that for most airports, the potential for growing the core business is good. The UK’s public deficit has nearly halved since the General Election More people are in work than ever before. And the private sector is leading that recovery. The fact that the UK now has the fastest growing economy in the developed world is making a real difference. And it’s not just commercial passengers who are booking flights. Business aviation is flourishing. And as UK imports and exports increase, demand for air freight is high. Last week I was at Heathrow, which according to the Economist handled freight worth £133 billion in 2013. That’s more than the combined value of goods passing through our two biggest ports, Southampton and Felixstowe.
Environment
All these revenue streams will help to make airports sustainable as profitable businesses. But as Ed eloquently explained in his speech, future growth must also be green growth. The industry’s come a long way in a relatively short time. And perhaps doesn’t get as much recognition as it deserves for its efforts to reduce emissions and noise. Both Virgin and British Airways have been testing cleaner fuels.
We are also providing £25 million of capital funding for the construction of demonstration-scale advanced biofuel plants in the UK. This will help UK industry to be at the cutting edge of developing sustainable low carbon fuels for use in aviation. While also creating high tech, high skilled jobs for the future. New engines, like the advanced CTi, composite carbon and titanium engine being developed by Rolls-Royce, will help cut fuel burn and reduce emissions.
I’d also like to commend those airports that have improved their environmental performance – something that the AOA highlighted in its recent report on sustainability. Greenhouse gas emissions and climate change are an international problem. That is why this government has played a leading role in negotiations on international solutions. In April, the new aviation emissions trading regulation came into force, limiting the legislation to within the EU until 2016. I welcome this agreement, which strikes the right balance between maintaining the credibility of the European position, and making it acceptable to non-EU states. Crucially, it has created the space for wider agreement on a Global Market-Based Measure in 2016. Progress on this has already been made through the International Civil Aviation Organisation.
The technical and analytical work is on schedule, and discussions in ICAO’s Environment Advisory Group are under way. The UK is playing a central part in these discussions. And we’ll be working closely with other states, industry and non-governmental organisations so an effective decision can be made at the 2016 Assembly. There’s also positive news on local air pollution. Under this government, European air quality limits have been met around all UK airports, except for nitrogen dioxide levels near Heathrow. Many large airports now have an air quality strategy in place to stay within EU limits. We also want to strike a fair balance between the positive contributions of flights and the negative impacts of noise. Wherever possible we want to limit and reduce the number of people significantly affected by aircraft. Aircraft today are 75 per cent quieter than they were in the 1960s. But we expect the industry to continue reducing and mitigating noise as airport capacity grows. We appreciate that many in the aviation field would like government to do more to make land use planning around airports more aviation friendly – and we are open to discussing this.
However we need to balance that against the interests of local residents. Especially in the run up to the Airports Commission’s recommendations next year. And on that point. You’ll shortly be able to hear from the leaders of all three options which the Commission shortlisted. And you will hear from Sir Howard himself tomorrow morning.
The level of interest in the debate emphasises the importance of the Airports Commission’s work. Previous attempts to find a solution to the capacity challenge failed. They failed because they used old evidence. And so they resulted in a lack of consensus. By bringing together a new, better, evidence base, the right decisions will be made. Decisions that will end decades of uncertainty.
Conclusion
So in summary. A vibrant aviation industry is crucial to Britain’s prosperity. Aviation is not just a beneficiary of economic growth. It creates it. So we want your businesses to flourish.
But that’s just part of the challenge. What we’re also working towards. Through the Airports Commission. Through our environmental negotiations. And through our policy framework. Is a fully sustainable plan for aviation. Which means a competitive, customer-focused, environmentally-responsible industry that’s fully adapted to the rigours and requirements of the 21st century. That’s our shared objective. And by working together, it will become our shared achievement. Thank you’.
11 November 2014 – The Airports Commission has published its assessment of proposals for additional runway capacity at Gatwick and Heathrow airports for consultation. The consultation presents The Commission’s analysis of the proposals short-listed last year: Two for expansion at Heathrow Airport and one proposal at Gatwick Airport. Full consultation documents are available here. The consultation invites public comment on The Commission’s detailed consideration of each proposal. This includes analysis of the cost of each proposal, the effect on communities of noise, property loss and construction, and the economic benefits and environmental impacts. The information included in this consultation will enable respondents to give their view on the strengths and weaknesses of each short-listed option. It also invites comment on The Commission’s review of the underlying evidence and analysis. It is anticipated that these comments will then be taken into account and used to validate and challenge The Commission’s assessments, ahead of the final report in the summer of 2015. In its interim report, published in December 2013, the Commission identified a need for one net additional runway in London and the south east of England and short-listed for detailed appraisal and public consultation three proposals to deliver this capacity. The documents published include:
- the commission’s overarching consultation document
- a business case and sustainability appraisal for each short-listed scheme
- a wide range of technical supporting information
The Commission’s has also published the updated scheme designs submitted by the short-listed promoters in May 2014. The consultation period will run for 12 weeks until Tuesday 3 February. During the consultation the Airports Commission will hold open discussion sessions for local stakeholders in both the Heathrow and Gatwick areas.
11 November 2014 – The Department for Transport has published Noise exposure contours around London airports and Noise contours on Ordnance Survey maps for Heathrow, Gatwick and Stansted airports. The magnitude and extent of the aircraft noise around these airports are depicted on maps by contours of constant aircraft noise index (Leq) values. The contours are generated by a computer model validated with noise measurements, which calculates the emissions and propagation of noise from arriving and departing air traffic.
13 November 2014 – The Office for National Statistics has released the statistical series ‘Overseas Travel and Tourism – Monthly Release, September 2014’. Key points include:
- Visits to the UK by overseas residents continue to rise, with 2.9 million visits in September, an increase of 3 per cent compared with September 2013.
- UK residents made 6.4 million visits abroad in September 2014, this was a fall of 2 per cent compared to September 2013.
House of Commons – Oral Question
Lopresti – Minimising the impact of job losses at Rolls Royce
5 November 2014
Jack Lopresti (Filton and Bradley Stoke, Conservative): Yesterday’s announcement by Rolls-Royce of significant job losses across the country will devastate people and homes, and could well damage our national engineering skills base. Will my right hon. Friend meet me and employee representatives from Rolls-Royce to see if we can try to minimise the effect of this by finding alternative engineering jobs and if we can try to preserve our vital engineering expertise? Will he reassure my constituents in Filton that he will continue to champion our world-renowned and world-class defence export manufacturing?
David Cameron Prime Minister (Witney, Conservative): I can certainly assure my hon. Friend that I will do everything I can to champion companies such as Rolls-Royce, whether in civil aerospace or defence aerospace. I try to take it on as many of my trade missions as possible, because it is an absolutely world-class, world-beating company. Obviously, it is disappointing that it plans to reduce the number of people it employs. It is not yet clear how many of those job reductions will be here in the UK. Of course, Rolls-Royce employs over 25,000 people in the UK. If we look at what has happened to the aerospace industry over the past four years, we see that employment is up by 10 per cent, exports are up by 48 per cent and turnover is up by a fifth. This is a successful industry that is being backed by our modern industrial strategy, but we need to do everything we can to make sure this company, and others like it, continue to succeed in the years ahead.
House of Commons Statements
Hancock – Growing the aviation sector to ensuring engineering capability
5 November 2014
Henry Smith (Crawley, Conservative): Yesterday I was very pleased to host Crawley headquarters, Virgin Atlantic airways here in the House of Commons. It has just ordered 21 Boeing 787s, all with Rolls-Royce engines. Does my right hon. Friend agree that the growth of our innovative aviation sector is key to ensuring that, wherever possible, we maintain a high degree of engineering capability?
Matthew Hancock, Minister for Business and Enterprise (Portsmouth, Conservative ): One of the explanations that Rolls-Royce has given for this news is that it is coming to the end of a development phase and moving into a production phase for exactly the engines my hon. Friend mentions. Such changes in timing have their effects of course, but the overall picture for the UK aerospace industry is a bright one. Exports are up by almost 50 per cent over the last four years, employment is up, turnover is up and our share of the global market is growing—we are second to the United States and we will remain so. Overall, therefore, there is a positive picture across the industry and we must make the most of that, while also dealing with the direct impact of this decision on individuals who are understandably concerned.
Hancock – Government response to announcement of job cuts at Rolls-Royce
5 November 2014
Chris Williamson (Derby North, Labour): Will the Minister make a statement on the Government’s response to the 2,600 job cuts announced by Rolls-Royce across its aerospace group and on plans to establish an economic response taskforce to assist those who lose their jobs in the United Kingdom.
Matthew Hancock: Yesterday Rolls-Royce announced plans to reduce its global headcount by 2,600 over the next 18 months, mainly in its aerospace division. It has not yet decided where the losses will occur, although a significant proportion are expected to be in the UK. Rolls-Royce is in consultation with the work force and the unions about the details of how the reductions will be made. Rolls-Royce has explained that it needs to make the changes to secure its competitiveness in a challenging global market. I realise that this will be a worrying time for the work force and their families. My right hon. Friend the Business Secretary cannot be here as he has a prior speaking engagement, but both he and I have spoken to Rolls-Royce and made it clear that we will do all we can to work with the company to support those made redundant.
Since 2010, Rolls-Royce has created 4,000 new jobs in the UK. Part of that increase reflects the large engineering team needed to develop the new Trent engines for the Boeing 787 and the Airbus A350 XWB, or extra-wide body. Now that these engines have moved from the development phase to the production phase, Rolls-Royce believes that it needs to reduce its development work force. A high proportion of the affected jobs are likely to be engineering jobs, and we know that shortages of engineering skills exist across the UK. We are therefore operating the talent retention solution, which matches engineering talent with new job opportunities. This will be specifically tailored to the needs of Rolls-Royce.
Skills training will be made available where appropriate for those who need to retrain, and a taskforce based on the skills and jobs retention group, including local and national Government, local partners, Rolls-Royce, the supply chain and others, will be established to ensure that we do all we can. The group has a successful track record in redeploying engineering talent with other growing businesses, most recently working with BAE. It is already in contact with Rolls-Royce and other potential employers.
Rolls-Royce has a proud history in the UK in aerospace, employing nearly 25,000 people last year, out of a global work force of 55,000. Its aero engines power more than 30 types of commercial aircraft, with around 13,000 engines in service. Rolls-Royce is, and will remain, the second largest provider of defence aero engine products and services anywhere in the world. In the long term, the prospects for UK aerospace remain bright. Rolls-Royce will continue to take graduates and recruit apprentices, ensuring that it has a pipeline of talent for the future. Our aerospace growth partnership has put in place a long-term plan for the whole aerospace industry, and we have consistently supported Rolls’ investment in new technology, modern manufacturing processes and skills development.
We are determined to support Rolls-Royce while it makes the changes it needs, as part of our growing and world-beating aerospace sector, to ensure that it retains its dominant position. Announcements of job losses are never welcome. We will work with all involved to mitigate the impact, support those affected and ensure that British engineering and British manufacturing can rise to the challenge they face and build a secure future.
Chris Williamson: I am grateful to the Minister for his statement. He will know that Rolls-Royce was created in Derby and owes its success to Derby, and that this news will be a bitter blow to a proud work force who have delivered that great success for the company. I wonder whether I can probe him a little further on what he and the Government will do to work with the company to minimise job losses in the United Kingdom. Rolls-Royce is the biggest employer in Derby, employing highly skilled, well-paid engineers, so if there is a large job loss in the city, it will have a devastating impact on the wider economy.
Will the Minister also say something about potential skills shortages as a consequence of a short-term decision taken by Rolls-Royce? I appreciate his comments about the potential redeployment opportunities, and we will certainly work with the Government to assist wherever we can on that. The aerospace industry is obviously important, and Rolls-Royce is an iconic international company. It is therefore important, I think, that the Government look at what they can do to work with the company to make sure that this decision to reduce the work force does not lead to a skills shortage further down the track. I would also be grateful if he said something about the conversations he has had or will have with the company in relation to the 400 apprentices in the system, and what guarantees he might be able to secure for them when they complete their training.
Finally, is there anything more the Government can do with research and development, particularly with regard to reimbursable launch investments? Is there scope to be more creative in the use of them—not just for Rolls-Royce, but for the wider manufacturing industry? It is really important for the Government to do whatever they can to promote and increase the scope of manufacturing in our country. These are high-value jobs; they are not the zero-hour, part-time, low-paid jobs that we have seen as a feature of the economic and jobs growth over the last couple of years. These are vital high-skilled jobs, and we need more of them.
The Prime Minister visited Derby several years ago with the Cabinet to say that he wanted to rebalance the economy in favour of manufacturing industry. I just hope that when the Minister gets to his feet, he will be able to provide some reassurances on the points I have made and show that the Government mean what they say and will actually work with the company to ensure that these job losses are minimised. As I said, the success of Rolls-Royce is down to the tenacity, skills and dedication of the work force in Derby, so it is really important that the job losses in our city are minimised.
Speaker of the House of Commons: Order. The hon. Gentleman spoke with great passion and wisdom on matters with which he is intimately concerned. For the future, however, it would be helpful if people tried to stick to the time limits on these matters, because there are many colleagues to accommodate. I do not wish to embarrass her, but I think that colleagues will probably learn shortly from the right hon. Member for Derby South (Margaret Beckett) how it can be done pithily.
Matthew Hancock: Of course we are working to ensure that, as much as possible, those who face redundancy through this process have the support they need, especially to get other jobs in the sectors that are expanding fast. Aero as a whole is expanding, with its exports up sharply over the last four years.
I would, however, caution the hon. Member for Derby North (Chris Williamson). I very much look forward to working with him, colleagues and others to ensure that those who are affected get the support they need, but the 4,000-job increase in Rolls-Royce employment over the last four years has, in large part, been in exactly the sorts of high-skilled, high-quality jobs we all want to see. I do not think it behoves the hon. Gentleman well to try to deny that in some way. [Interruption.] On the contrary, what we are trying to do is ensure that, where there are skilled people, they get the retraining that they may need or the connection to those who are trying to expand, and where there are skills shortages in engineering, that undoubtedly means that there are opportunities and job vacancies for the people with those skills who are being made redundant by Rolls-Royce.
6 November 2014
Andrew Bridgen (North West Leicestershire, Conservative): May I bring to the attention of the House early-day motion 455, which stands in my name? Currently, all children aged two and over flying from a UK airport pay the same amount of air passenger duty as an adult. That puts a significant amount on the cost of flying for families and the policy is out of line with most taxes, including on clothes and books, where children are exempt. British families face the full whammy of paying full APD on all flights plus a premium for taking their children on holiday out of school time. May we please have a debate on the amount of tax levied on children’s flights in the UK?
William Hague, Leader of the House of Commons and First Secretary of State (Richmond Yorks, Conservative): The right time to debate air passenger duty is after the Chancellor presents his autumn statement or his Budget each year. My hon. Friend will recall that the time when the House decides whether to pass what the Chancellor proposes is after the Budget each year. Of course we will take what he has said as a Budget representation. He will remember that the Chancellor recently simplified air passenger duty. I think that that will have been of assistance to a lot of people, but it did not deal with the point that he has raised.
Hague – Impact of Heathrow Airport on local residents
6 November 2014
Mary Macleod (Brentford and Isleworth, Conservative): Yesterday I visited Chatsworth primary school with the aviation Minister, my hon. Friend the Member for Scarborough and Whitby (Mr Robert Goodwill), to hear about the impact of Heathrow airport on the learning and development of the young pupils, who spoke of suffering sleep deprivation because of the aircraft that arrive throughout the night. The Airports Commission is due to report next year, but it has said that the options are Heathrow and Gatwick. Will my right hon. Friend arrange a full and frank debate, in which we can discuss what is best for the United Kingdom and take account of the views of residents?
William Hague: My hon. Friend always speaks up strongly for her constituents on this matter. The impact on residents is of course one of the issues that the airports commission is considering in its review. It is crucial that we take long-term decisions on our aviation capacity that will keep Britain competitive for years to come. As she knows, the commission will make its final recommendations in the summer of next year, and I am sure that hon. Members will have many opportunities to make their views on this issue known and to represent the views of their constituents in the coming months.
House of Lords – Oral Question
Spicer – Government policy on the development of London’s airports
4 November 2014
Lord Spicer (Conservative peer): To ask Her Majesty’s Government what is their policy on the development of London’s airports.
Baroness Kramer, Minister of State for Transport ( Liberal Democrat peer): In Our Programme for Government, the coalition announced the cancellation of plans for a third runway at Heathrow, and the refusal of permission for additional runways at Stansted and Gatwick. However, we recognise the need for a long-term airport capacity solution to ensure continuing international competitiveness in the coming decades. Therefore, Sir Howard Davies was asked to chair the independent Airports Commission, which will submit its final report in summer 2015.
Lord Spicer: My Lords, does the Liberal Democrat policy not to build runways at London’s airports, whatever the circumstances, drive a coach and horses through the policy that my noble friend the Minister has just announced?
Baroness Kramer: My Lords, it is absolutely important that as a Minister in the Department for Transport I make sure that the commission is always recognised as having full integrity and independence. Therefore, even when pressed with this question at my own party conference, I have always refused to give any answer other than that the Government will comment after the final report is submitted in 2015.
Lord Faulkner of Worcester (Labour peer): My Lords, in view of the improbability of any new runway capacity being constructed in the south-east during the lifetime of most Members of your Lordships’ House, does the Minister not agree that this is the time to look very seriously at the role of regional airports such as Birmingham, which will be only 47 minutes from central London by High Speed 2?
Baroness Kramer: My Lords, I think that under all circumstances it is important to look at the potential for regional airports, Birmingham being one. There are numerous others across the country with ambitions.
Lord Soley (Labour peer): My Lords, does the Minister accept that her position has moved significantly? I welcome that, but does she appreciate the importance of airports to Britain’s success in global markets? If she does, can she please accept that we ought to give at least as much attention to airports throughout the UK as we do to the rest of the transport infrastructure, most notably rail and road? We have to put airports up there or we will not succeed.
Baroness Kramer: My Lords, working from my transport brief, we look frequently at connectivity for airports and recognise that all transport has an important role to play in economic growth.
Lord Swinfen (Conservative peer): My Lords, what consideration is being given to the expansion of Manston Airport, which has good rail and road communications with London and could easily mop up a lot of the unemployment on the Isle of Thanet?
Baroness Kramer: My Lords, I have to confess a lack of knowledge on that question, and I will gladly write to your Lordships.
Lord Grocott (Labour peer): My Lords, in view of the Minister’s answers in respect of London airports, can she tell the House whether she is more or less happy in her work in the Department for Transport than her Liberal Democrat colleague Norman Baker is in the Home Office?
Baroness Kramer: My Lords, I love my time in the Department for Transport, and I can say that it is one of the most collegiate places in which I have worked.
Lord Sugar (Labour peer): My Lords, I respectfully point out to the noble Baroness that she may not be aware that the current arrivals and departures procedures used by civil aviation mean that it matters not whether we have one extra runway at Heathrow or 10. The fact is that we cannot land enough aircraft at the moment. Will the noble Baroness inquire of the Davies commission whether it will review the standard arrivals and departures procedures and the adoption of GPS technology, which I know the CAA has just started to use, to allow further arrivals at airports?
Baroness Kramer: My Lords, I will go back and ask my department to have conversations with the CAA so that I can give the noble Lord a more complete answer.
Baroness Tonge (Independent Liberal Democrat peer): My Lords, my noble friend will remember that after Terminal 5 was approved, we were assured that there would be no further development at Heathrow Airport. I wonder if she can give us any insight into what will happen should a third runway be built at Heathrow Airport, and how much more development we shall see there?
Baroness Kramer: My noble friend knows intimately the history of airport development in the south-east. I am afraid that I can make no further comment until the final report comes from the Davies commission in the summer of 2015, at which point I will be delighted to comment.
Lord Davies of Oldham (Labour peer): My Lords, are the Government sustaining pressure on Sir Howard so that an incoming Labour Government will be able to consider the report immediately after the general election? Another easy question for the Minister: how much did the unrealistic and abortive idea of “Boris Island” cost?
Baroness Kramer: My Lords, Sir Howard Davies’ report will not be ready until the summer of 2015 and it is beyond my telepathic capabilities to anticipate its contents. I cannot answer for the Labour Party.
Lord Clinton-Davis (Labour peer): Does the Minister agree that there is bound to be a substantial delay between the publication of the report and the building of a new runway? Meanwhile, the costs will inevitably rise, and British aviation will have to pay those costs, among others. Does the Minister agree with that?
Baroness Kramer: My Lords, I am sure that everybody would want a major decision such as whether to build a new runway to be made with the best information available. It is important in those circumstances to make sure that the issue has been fully explored. That may be called delay by some. I think that others would say that it helps to inform appropriate decision-making.
Baroness McIntosh of Hudnall (Labour peer): My Lords. May I ask the noble Baroness whether she agrees that one of the things that have bedevilled this issue over the past two decades has been delay? Does she believe that when the Davies report is finally published, it will be implemented? I declare an interest as a supporter of the Stop Stansted Expansion campaign. If she looks at that example, she will see the restorative effect of lifting the blight on an airport and the countryside coming back to life.
Baroness Kramer: My Lords, Sir Howard Davies identified that there was no immediate capacity requirement; he is looking to 2030. After the report is issued we will all have to look at its contents and then make our decisions on how we will respond.
Media News
10 November 2014 – Heathrow Airport has seen a 5.3 per cent increase in the volume of cargo in 2014. A new study commissioned by the airport to coincide with launch of the UK Trade & Investment Export Week found that the UK is Europe’s second biggest exporter, second only to Germany, and the fifth biggest exporter worldwide. The report shows that the top five items exported from Heathrow by value are: jewellery and precious metals, machinery including engines, generators and boilers, medicines and pharmaceuticals, electrical machinery and equipment, photographic, cinematographic equipment.
10 November 2014 – The Mayor of London Boris Johnson met with representatives of Gatwick Airport to discuss aviation expansion shortly after the Airports Commission ruled against the option for an airport at the Inner Thames Estuary, the Standard is reporting. The Mayor held his first meeting with senior representatives from Gatwick Airport Limited on October 9 to discuss its role.
10 November 2014 – The Airports Commission have said that a second runway at Gatwick would cost £2bn more than the short-listed bid has suggested, while two separate plans to expand Heathrow Airport are predicted to cost £3-4bn more. The BBC’s Transport Correspondent Richard Westcott gives his analysis of the Commission’s assessment of proposals for additional runway capacity at Gatwick and Heathrow airports.
10 November 2014 – In a speech to the Airport Operators Association Annual conference the Chief Executive of Heathrow Airport, John Holland-Kaye set out three reasons why support should be given to the airport for expansion – arguing that only Heathrow will:
- connect Britain to long-haul global connections.
- deliver the freight capacity for Britain’s exporters.
- connect to every part of Britain.
11 November 2014 – The Freight Transport Association has reiterated its position to the Airports Commission that ‘air cargo is crucial to the UK economy’.
11 November 2014 – The Chief executive of Manchester Airport Charlie Cornish has criticised the ‘unprecedented’ levels of Government funding potentially needed for expanding Heathrow and Gatwick airports. Commenting after the Airports Commission released an assessment of their three short-listed options for long-term capacity Mr Cornish said that ‘given the private interests at stake, adopting a special set of rules that favours the delivery of new capacity over the use of existing capacity, will have profound adverse consequences for competition and consumers in the long-run’.
12 November 2014 – Speaking at the Airport Operators’ Association conference Sir Howard Davies has asserted that the next Government must act on his recommendation for expanding aviation in south-east England. The Independent also reports on reaction to the consultation on the three short-listed schemes for long-term capacity.
13 November 2014 – The outgoing Scottish First Minister has called for changes to the way Air Passenger Duty is levied to attract more direct long-haul flights to Scotland.
SASIG Regional&IndustryNews Bulletin 10 November – 14 November
SASIG ParliamentaryNews Bulletin 10 November – 14 November
The Parliamentary information in this Bulletin is sourced from De Havilland Information Services plc .