Airports National Policy Statement

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Thursday 7th June 2018

(5 years, 10 months ago)

Westminster Hall
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Jesse Norman Portrait The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
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It is a delight to see you in the Chair, Mr Hanson. It has been an interesting and wide-ranging debate. I start by putting on the record my gratitude to the hon. Member for Nottingham South (Lilian Greenwood) for her detailed, thoughtful and statesmanlike speech, which absolutely flagged the way in which the Transport Committee had approached the process, the thoroughness and care with which it engaged with the issues and the unanimity of the report, subject, as she made clear, to its serious concerns being addressed. She is absolutely right about that.

Many more concerns have been raised during the debate, and I will try to cover them all individually during the course of my speech. If hon. Members feel that I have not covered any, they are absolutely welcome to write to me or to the Secretary of State, who has already said in response to my right hon. Friend the Member for Putney (Justine Greening), and as is already happening, that the Department will respond with urgency and diligence to questions put to it because of the tightness of the timetable, which is not under the control of the Government but is decided by the Planning Act 2008.

I am grateful to the hon. Member for Nottingham South and also to the Committee for securing the debate. We have had a wide-ranging conversation, and I will focus on what has been said, but particularly on the Committee’s report and the Government’s response to it. As hon. Members are aware, there will be ample opportunity to address the NPS more broadly in the debate on the Floor of the House before the vote, and I have no doubt that there will be other parliamentary occasions to do so as well. I thank the Committee for that on both of those fronts.

The Committee’s report is clear that airport expansion in the south-east is vital. It supported the strategic argument that the Heathrow north-west runway scheme is the best option, subject, as we have discussed, to the caveats described. Importantly, it does not shirk the “do nothing” option. It is aware that doing nothing is not an option—I do not think some hon. Members have quite been aware of that—given the constraints on capacity in this country, particularly in the south-east. That was an important recognition of the seriousness of the issue on both sides.

To answer a question put earlier by my hon. Friend the Member for Windsor (Adam Afriyie), the Government are clear on our side that expansion will proceed only if the proposed scheme meets strict environmental obligations and offers a world-class package of compensation and mitigations for local communities. If those are not in place, the scheme will not proceed, so genuine questions as to whether it will proceed are raised by those issues.

Having given the report careful consideration, we have welcomed and acted on all bar one of the 25 recommendations, which I shall discuss in detail. The hon. Member for Kingston upon Hull East (Karl Turner) said that we had only paid lip service to them, but that is not true; in fact, we have engaged very seriously with them. One can see that not just in the changes that have been made to the NPS itself but in the very detailed response in the back of our report, to which I direct hon. Members. The last 20 pages of the Government response are a very detailed analysis of the additional points raised in the Transport Committee’s report. This is an eight to 10-point detailed discussion and analysis, and it shows the depth of our engagement with the report. As the hon. Member for Nottingham South says, the report was received on 23 March, so we have had it for two and a half months. There was no precipitate behaviour; we have not rushed to our conclusions. We have sought to digest with care and attention the Committee’s thoughts and analysis.

Some of the issues raised by the Committee will be addressed, as our response makes clear, at a later stage in the development of the scheme, as is appropriate. It is important to say that what we are discussing is a framework document setting out the overall planning approach in relation to this very substantial national infrastructure project—it is of national significance. Therefore, it is appropriate that many of the more detailed issues that need to be solved are addressed later in the planning process.

Justine Greening Portrait Justine Greening
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Will the Minister give way?

Jesse Norman Portrait Jesse Norman
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I am happy to give way, but even with 19 or 18 minutes left, I do not have a lot of time, given the many issues that have been raised already.

Justine Greening Portrait Justine Greening
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I understand the point that my hon. Friend is making, but some of the detailed questions, as he has just called them, are actually questions about the feasibility of this project more broadly, and that is why they should be answered sooner and not later.

Jesse Norman Portrait Jesse Norman
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I absolutely understand the concern that my right hon. Friend expresses and I will come on to some of the aspects covered by that later in my remarks.

Let me pick out the one recommendation that we were not able to support, which was raised by several hon. Members. This is the question whether we can give the Lakeside Energy from Waste plant equivalent recognition to that accorded to the immigration removal centres. In response to similar concerns raised during the first public consultation, we strengthened the language in the NPS. Although we recognise the important role of the plant for local waste management, it is not—this has been verified in analysis by both the Department for Environment, Food and Rural Affairs and the Department for Business, Energy and Industrial Strategy— a strategic asset and its loss would not affect the UK’s ability to meet environmental targets, so it would not be appropriate for us to set it apart from other large, privately owned business facilities.

The Committee rightly highlighted the impact that additional noise from a larger airport could have on local communities. I very much recognise, as my colleagues do, that noise is a major concern. The airports national policy statement sets out a clear policy for addressing the scheme’s noise impacts. It makes it evident that the Government expect noise mitigation measures to limit and, where possible, reduce the impact of aircraft noise. In response to the Committee’s recommendations, we have improved the clarity of the NPS—for example, over the expectation that the scheme promoter will provide more predictable periods of relief from noise through a runway alternation programme.

The NPS also sets an expectation of a six and a half-hour scheduled night flight ban. I think that there was potentially some confusion in colleagues’ minds on this issue. We have not reneged on any claim that has been made. There is an important distinction to be made between respite and a ban. In many ways, the Government’s proposal goes beyond claims that were made by others previously, because it sets an expectation for a six and a half-hour scheduled night flight ban, in addition to other forms of respite, which may come, for example, from alternation of runways. Along with the Government’s expected ban, there is scope for additional periods of respite to be provided at night, which means that we expect some communities to receive up to eight hours of noise relief at night.

It is important to say that the noise mitigation measures that we would expect to accompany any expansion at Heathrow would be determined in consultation with local communities and relevant stakeholders. Of course, we now have in place a local community forum, designed to enable the closest possible discussion of these issues with local—

Justine Greening Portrait Justine Greening
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Will the Minister give way again, just briefly?

Jesse Norman Portrait Jesse Norman
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I will of course, but I am running out of time already.

Justine Greening Portrait Justine Greening
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Again, we have had a million consultations over the years. The problem is that we are never listened to.

Jesse Norman Portrait Jesse Norman
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I do not think that is true, if I may say so. It has already been shown that the Department and the Government’s position has moved in reaction to concerns expressed about this issue. That is why I have described the changes that we are making to predictable periods of relief from noise through a runway programme.

It has been suggested at different times in the debate by some that the Government are rushing headlong, pell-mell into a sudden decision, and by others that we have become immured and mired in consultation and delay. The truth is that we are making fairly steady and stately progress towards a set of decisions, which may go one way or the other, depending on the merits of the case, and we are doing so with previous Governments, certainly on the Labour side, having supported this proposal, so we are rather hoping that many Labour Members will continue to support it.

New technology is already making aircraft quieter. By the time a third runway is operational at Heathrow, we would expect airlines to be making much greater use of quieter, more efficient aircraft, which would also help reduce noise.

I want to respond to the Committee’s concerns about the potential effect of pollution on our air quality. Again, we have made changes. We have made the national policy statement clearer that delivering according to air quality obligations will provide protections for health and the environment. We have also made it very clear that the third runway will be allowed to go ahead only if it can be delivered in compliance with the UK’s air quality obligations. The environmental assessment and mitigations proposed by the airport will be very carefully scrutinised, I need hardly say, before any development consent is granted. Measures including a potential emissions-based access charge, the use of zero or low-emissions vehicles and an increase in public transport mode share use by passengers and employees would all contribute towards mitigating the impacts of an expanded airport.

I have touched already on community compensation. This is another issue that we take extremely seriously. On the issue of the compensation package for local communities, we share the Committee’s view that that is a fundamental component of the package of measures that accompany the north-west runway scheme. Heathrow Airport Holdings Ltd has committed to paying homeowners who will need to move considerably more than is required in statute—125% of market value should the developer secure development consent. It has also committed to an extensive programme of noise insulation for homes and schools. A community compensation fund will be developed by an applicant to mitigate still further any environmental impacts and, as I have suggested, a community engagement board has already been set up, with Rachel Cerfontyne appointed as the independent chair. We agree with the Committee that details of the proposals must be worked up through consultation with local communities.

Ruth Cadbury Portrait Ruth Cadbury
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Will the mitigation package and, in particular, the noise insulation be subject to an absolute cap, or will it be subject to the actual noise that people experience, and if they experience the higher level of noise that generates the need for insulation, will it be delivered irrespective of the monetary cap? Also, will it be delivered in advance of the new flights coming in, or will residents, as at present, have to wait up to 10 years for the noise insulation to which they are entitled?

Jesse Norman Portrait Jesse Norman
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The answer to that question is, of course, that the package will be developed in consultation with local communities and, wherever possible, with an attempt to respond to the concerns that people have had.

The hon. Member for Slough (Mr Dhesi), who is not in his place, asked whether compensation would be targeted to those most affected. The answer is that we are talking about what appears at the moment to be £2.6 billion in commitments, which is ten times bigger than the previous compensation offer made, including £700 million for noise insulation for homes and £40 million to insulate schools and community buildings. Those will be developed in a way that recognises the impacts, and the greatest impacts will be those most affected.

With regard to surface access, we know that Heathrow is already Britain’s best-connected airport by road and rail—a position that will be strengthened by future planned improvements to the public transport systems that serve the area. In responding to the Committee’s call for a written commitment to southern and western rail access, the Government have amended the NPS—a further change of direction in response to the Committee’s work—to set out our clear support for the western rail link and to explain the continuing development of a southern rail access scheme. We are pressing ahead with both, but these are subject, in the usual way, to appropriate planning processes and approvals. Network Rail already has underway a statutory consultation on the development consent order for western rail. The Transport Secretary recently held an event to engage the market more closely on the appetite for a privately funded and financed southern rail scheme. We are not delaying on this.

We also welcome the Committee’s focus on managing traffic associated with the airport. The airports national policy statement requires the applicant to set out clearly how it will mitigate any impact on the transport network and support additional demands that may be created by expansion. We have proposed specific mode share targets for passengers and employees at the airport, which we expect to be requirements of any development consent order. We also support the aspiration of Heathrow Airport Ltd to expand the airport without increasing airport-related traffic. Of course, it should be for the airport operator to demonstrate, as part of any development consent application, how it intends to deliver that goal and how it will, in so doing, mitigate any impact on the public transport network.

The Chair of the Committee said, absolutely rightly, that expansion cannot come at any cost, and we concur. It is important to take a calibrated approach to this, as the Committee has done. We have been clear that we expect expansion to be financed by the private sector without Government support. We also expect the industry to work together to deliver the ambition, set by the Secretary of State in 2016, that airport charges should remain close to current levels in real terms. We will continue to test the “financeability” and affordability of the Heathrow third runway scheme, as will the regulator, the CAA, and we have revised the national policy statement to clarify how the regulatory and planning processes work in this regard, with a considerable amount of further information provided in the final proposed national policy statement. Again, we are grateful to the Committee for its input.

I am also aware of the various representations that have been made in the Chamber that the Government would somehow be liable for Heathrow’s costs, should they decide to withdraw support for the scheme. That point was raised by my right hon. Friend the Member for Putney this morning and in this debate. To be clear to her, I did not say that those policy statements were the same for all three bidders. I said that they were substantially similar. I made that point because I wanted to show that there was no predilection, as it were, towards one bid over another; they were being treated in an equal way. The language in question creates no obligation on the Government, contingent or otherwise.

Let me be clear that the Government have not entered into any agreement that gives Heathrow the right to recover its losses in the light of any scheme not proceeding, and nor do we recognise any liability for any of the costs that Heathrow Airports Ltd has incurred or will incur in future. Separately, the Government laid before Parliament yesterday a written ministerial statement and a departmental minute that set out—this makes the point the other way—a contingent liability where one does in fact exist for statutory blight, which would commence if the proposed airports national policy statement is designated. That liability is contingent, because the Government have rightly protected the taxpayer by entering into a binding agreement with Heathrow Airport Ltd, whereby the airport will assume the financial liability for successful blight claims if, and only if, the scheme proceeds, thus protecting the taxpayer.

Many hon. Members have rightly raised the question of connectivity and regional impact. We agree with the Committee that the benefits of Heathrow expansion must be felt nationally. We welcome the Committee’s endorsement of our plans for an expanded Heathrow airport to retain existing domestic routes and add new routes. We have made it clear in our response that we will further consider domestic connectivity as part of the aviation strategy, which is in the process of being developed. Colleagues will be aware that consultation on that has recently closed. It will include the Secretary of State’s ambition for up to 15% of slots released under expansion to be used for domestic flights. The proposed airports national policy statement makes it clear that the Government require Heathrow Airport Ltd to work with the airlines to protect existing routes and deliver new connections. This will be examined as part of any DCO application. The Government will also hold Heathrow Airport Ltd to account on its public pledges, including the introduction of its £10 million route connectivity fund.

John Grogan Portrait John Grogan
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The Minister mentioned “up to 15%”. Is there a floor or could it be anything between 0% and 15%?

Jesse Norman Portrait Jesse Norman
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Our expectation is that it will be up to 15%, but we wait to see how far that 15% can be fully utilised. We have made it perfectly clear that, although this is not a matter for Government as such, we expect to see many regional airports come forward with plans, as many have already said they would. The hon. Member for Kilmarnock and Loudoun (Alan Brown) has already given evidence of the support of Scottish airports.

Alan Brown Portrait Alan Brown
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The Minister will be aware that the Secretary of State said in his statement on Tuesday that the Government will find a legal mechanism for the protection of slots. How is that going to happen? That seemed to be a rather more vague commitment.

Jesse Norman Portrait Jesse Norman
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That is right. We have taken legal advice on it. We believe that public service obligations are a mechanism that can be used to give legal support for that position. I hope the hon. Gentleman will take a degree of comfort from that.

I want to turn to some of the many points that were raised. I have only about two and a half minutes remaining, so I will be as quick as I can. I apologise if I miss some, and colleagues are welcome to write to me with these concerns. One suggestion made was that the scheme fails to monetise all the costs. The advice I have had is that we have monetised the air quality impact, which was identified as an omission by the Transport Committee and included in the updated appraisal report. On the question of whether there is a potentially costly risk from a delay in hitting full capacity, our judgment is that this is not specifically geared towards the delivery of a scheme in 2026 exactly, which is immediately being filled up thereafter. Sensitivity testing on this suggests that there might be limited impacts, even if there were some form of delay, which we do not expect.

Let me go through these other points, many of which I have already touched on. As I mentioned, we agree that the conversation on mitigation must focus on the communities most affected. I absolutely agree with my hon. Friend the Member for North Thanet (Sir Roger Gale), who highlighted the importance of freight. He also made a powerful case, as many regional airports have done, for wider connectivity within the UK itself. I would not be surprised if I saw a bid coming forward from Manston, in a different incarnation from its current posture. I thank him for that.

We have touched on the question of bans versus mitigation. There is a suggestion that flight paths are somehow locked in place with no ability to vary. To be clear, as we move to a world of digital airspace, the capacity to vary flight paths greatly increases. That will take a number of years and that is why it has to be developed in context with the decision about the flight paths and therefore the noise implications of that, but it is important to bear that in mind.

I am grateful to the Committee. I appreciate that, in addition to the due documents that were laid before Parliament, a whole host of other materials have been subsequently published. I am grateful to hon. Members for looking at that. If they have further comments on that material, we would be happy to hear them.