25 October 2010
Secretary of State for Transport, Philip Hammond, delivered a speech to the Airport Operators Association (AOA) in which he discussed the Coalition Government’s current stance and policies on aviation. Mr Hammond detailed measures the current Government has taken to get the UK economy back on track and reduce the national debt. He stated that strong economic growth could only be achieved through a competitive economy in the longer term whilst delivering on climate change targets.
The Minister maintained that the Government is not anti-aviation and that the sector is integral to securing future growth. The Secretary of State went on to mention that the Government wants to work with the industry to address the challenges of climate change so that aviation can play its part in securing sustainable future economic growth.
Proposed third runway at Heathrow Airport
Mr Hammond understood the fact that the decision to cancel the proposed third runway was not supported by the majority of the industry. He stated that no Government with a commitment to carbon reduction targets could adopt a “predict and provide” approach to aviation capacity while aircraft CO2 remains an unresolved issue. He also highlighted the local environmental impacts of airport development with particular reference to noise and its affect on the local community. He urged the industry to accept the decision made against expanding not only Heathrow, but Stansted and Gatwick as well and to secure the future of the sector within the constraints that have been implemented.
Better not bigger
The Secretary of State established that the Government’s immediate challenge is to improve major airports across the UK, making them a positive and welcoming experience. The forthcoming Airport Economic Regulation Bill aims to ensure that there is a better alignment of the economic incentives facing operators with the interest of passengers. There will be a replacement of a one size fits all framework with a new regulatory licensing regime that is better tailored to meet the circumstances of individual airports.
The Government will also give the Civil Aviation Authority (CAA) a new primary duty to promote the interest of passengers and a duty to encourage investment, as well as powers to tackle anti-competitive behaviour. Alongside this the South-East Airports Task Force is looking at ways to make the best use of existing airport infrastructure and improve conditions for all users. This group’s initial focus is on Heathrow, Gatwick and Stansted.
Policy framework
Mr Hammond also made reference to the fact that there is a need for a policy framework that supports economic growth and protects Heathrow’s status as a global hub, as well as addressing aviation’s environmental impacts. In early 2011 the Department for Transport (DfT) will issue a scoping document setting out the questions the Government is seeking to answer. It is the Secretary of State’s intention to develop such a policy framework over the next year with a draft document available for formal consultation by early 2012.
Climate change
The Government and the aviation sector must continue to work together to deliver social and economic benefits, while reducing carbon emissions. The SoS noted that the Committee on Climate Change (CCC) has provided valuable advice about how reductions in aviation emissions can be achieved. Furthermore, the DfT is working on a robust assessment of the abatement potential and cost-effectiveness of a range of different policy measures, which will inform the Government’s response to the CCC next year.
Mr Hammond made clear that the “enemy” is not the airlines or their passengers but the carbon emissions that are produced. The Minister wants to look at how the Government can incentivise the decarbonisation of air travel and encourage businesses in the industry to invest in low carbon technologies and fuels. References were made to current progress that has been made in the aviation industry thus far, however, Mr Hammond stated that he would like to understand what technology is likely to be delivered over the next decades and what scope there is for noise-beneficial changes in operating practices. With regard to Air Passenger Duty (APD) reforms, the Minister stated that this would be a matter for the Treasury but that the DfT will work closely with the Department as the Government develops its proposals.
Security
The Government intends to develop a new regulatory system for aviation security, one where the Government concentrates on setting the security outcomes that need to be achieved and frees up operators to devise the security processes needed to deliver them in line with EU requirements. Further announcements on this are to follow in due course said Mr Hammond.
http://www.dft.gov.uk/press/speechesstatements/speeches/hammond20101025