24 November 2010
Chair of the Committee, Louise Ellman, began questioning Transport Secretary, Phillip Hammond, on how the outcome of the Comprehensive Spending Review (CSR) for the Department for Transport (DfT) could be described as a good settlement given that there was a reduction in capital spending of 11% and 21% reduction in resources over four years. Mr Hammond insisted that an overall spending reduction of 15% was a good comparative outcome in the context of the overall settlement.
Mr Hammond went on to state that restructuring would reduce the headcount by 25%, working practices would change and new technologies introduced to meet these budget cuts. It was stressed that people with critical skills would be retained within the Department.
Mr Hammond also urged Local Authorities to apply to the Regional Growth Fund, which includes funds contributed by the DfT.
The Minister was questioned further on the reduction in the aviation security budget. In response, it was stressed that the Government focused on outcomes rather than budgets but that some responsibility for security would be transferred to airlines or airport operators.
The Chair went on to ask whether funding would be cut for Transec. Mr Hammond stated that he was unable to answer this question as Transec is in the process of being split into two distinct areas. He felt that it would be more effective if the aviation security side sat within the aviation part of the Department. Mr Hammond also stated that a 25% saving in airport security did not imply a 25% cut in spending, as many functions will be transferred to industry.
In a general question about the future of the aviation industry, Mr Hammond responded by saying that the Government would develop a new aviation strategy. The strategy will address issues such as environmental impacts and new technology. A scoping document will be issued in the New Year.
SASIG comment:
SASIG will be actively supporting the Government as this aviation policy review progresses, starting with the hosting of a DfT Engagement Event on 19 January 2011 for the full SASIG membership to provide direct input to the process.
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