Airports Commission's Interim Report
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
The Government established the Airports Commission in September 2012 to advise on the need for and location of future runway capacity. In December 2013, the commission produced a comprehensive interim report that sets out the challenges we face in order to maintain the UK’s status as an international hub for aviation. The commission’s report sets out a clear argument that continuing to rely solely on our existing airport infrastructure will have an increasingly detrimental effect on the national economy and our prospects for growth.
The commission’s report sets out the work it plans to undertake before the publication of its final report in 2015, but also identifies a range of measures which can be taken now in order to improve the efficiency and effectiveness of our aviation industry in the short to medium term. Today, I am providing an update on the progress we have made in addressing these more immediate recommendations. However, let me first address the commission’s approach and our position on its long-term recommendations.
The Government welcome the open and inclusive approach that Sir Howard Davies and his fellow commissioners have taken on the first phase of their work. We also recognise the scale and depth of the commission’s analytical programme, which has significantly improved our understanding of the aviation landscape and the UK’s capacity needs. The commission’s strong analytical approach has taken account of the extent of aviation demand and the UK’s future requirements for international and domestic connectivity.
The commission’s report offers a high-level assessment of the long-term options for providing further runway capacity in the south-east of England. It shortlists three options: two at Heathrow, one at Gatwick and identifies one option for further consideration in the inner Thames estuary.
Promoters of shortlisted options have now provided more detailed proposals to the commission. This autumn, the commission expects to decide whether or not to shortlist an estuary option, and will then undertake formal consultation on the shortlisted options. As we have said before, it will be for the Government of the day to respond to the Airports Commission’s recommendations once it publishes its final report in summer 2015.
In the meantime, the Government, the Civil Aviation Authority (CAA) and the aviation industry are already making progress in responding to the commission’s short and medium-term recommendations for making better use of our existing airport capacity. Sir Howard Davies wrote to the Chancellor of the Exchequer on 26 November 2013 setting out the commission’s recommendations for improving airport surface access and the Government have set out their initial response to these recommendations in the national infrastructure plan, published in December 2013. Since then, good progress has been made in moving work forward on these surface access recommendations, which is important in helping to secure vital connections to emerging markets.
For example, the Government have committed £50 million towards a full redevelopment of the railway station at Gatwick airport. This is intended to deliver a significantly enhanced experience to both airport and regional transport users and we are working with stakeholders to deliver this as soon as possible. The Government expect Gatwick airport to make a significant contribution to this project. Since December 2013, work has been under way with Gatwick airport and Network Rail on outline plans for the new station. Over the course of 2014, the Government will work with both parties to deliver these plans and reach a commercial agreement on funding.
The Commission’s report recommended development of a broad “optimisation strategy” to improve the efficiency of UK airports and airspace at congested airports, balanced against the needs of local communities. As recommended by the commission, I have asked the chief executive of the CAA to establish an industry-focused senior delivery group (SDG) to develop and where appropriate lead delivery of this strategy. The new group has now been established and is contributing to a range of different measures that aim to balance operational benefits, the time lines for delivery, community impacts and environmental improvements. Where changes are wholly within the responsibility of industry, we expect them to deliver. Where Government have regulatory responsibility or oversight, they will continue to discharge this, for example by undertaking further consideration and consultation in the light of views and priorities expressed in the SDG. Some of the measures considered by the SDG form part of the national future airspace strategy (FAS) which is expected to deliver annual benefits of over £150 million to the aviation industry and environment by 2020 and more than £2 billion worth of cumulative benefits by 2030.
Progress is being made on delivering the benefits of FAS. Earlier this year a new arrival system was introduced allowing aircraft to absorb arrival delays more efficiently and reduce airborne holding by approximately 20%. Preparations are also well advanced to implement time-based separations from next year to increase resilience by allowing aircraft to fly closer in strong wind conditions. In addition, funding from the Government’s transport systems catapult has enabled the implementation of real time departure information sharing at airports like Stansted and London City, and over 20 UK airports are expected to adopt the solution by the end of next year. More information on progress can be found in the first report of the SDG’s work which is being published today and can be found at www.caa.co.uk/cap1206
In relation to the Commission’s recommendation for an independent aviation noise authority, the Government believe that it would be more appropriate to consider the role for such a body alongside the Commission’s final recommendations on long-term capacity. Similarly, we believe that any further Government decisions on using the runway designated for departures—for example, enhanced TEAM—and for a trial of early morning schedule smoothing at Heathrow should also be considered at that point and in the context of the Commission’s recommendations on long-term capacity.
The Government are committed to ensuring regulatory stability at the south-east airports while the Commission pursues its important work. With this in mind, having also taken account of other relevant factors, the Government are confirming today that we will be maintaining the existing restrictions on night flights at Heathrow, Gatwick and Stansted airports for a further three years until October 2017, as well as extending the ban on rare movements made by older noisier types of aircraft. This decision, which is published in a separate document, will help give certainty around the night noise environment for those living near the airports, as well as ensuring operational capacity at these airports is not affected pending decisions on any new airport capacity in light of the Commission’s final report.
The Government are conscious of the potential concerns of those living near the sites that have been shortlisted for future runway development. However, the Government is also mindful that introducing inappropriate measures too early has the potential to increase uncertainty and create other negative outcomes. The Airports Commission recommended against a discretionary generalised blight scheme at this stage for similar reasons.
The Government have been working with the promoters of the shortlisted schemes to determine when measures might be put in place to address concerns and what these measures could consist of. I have written to the scheme promoters outlining the Government’s expectations and asking them to ensure they actively involve and inform local communities. The Government will continue to work closely with scheme promoters on this issue and the Airports Commission has committed to a process that is transparent, fair and independent.
This Government have continued to demonstrate their support for airports outside the south-east. In Budget 2014, the Chancellor announced that our regional air connectivity fund will be doubled to £20 million per year and extended by a further three years up to March 2019.
The fund will continue to support public service obligations (PSOs) to maintain existing air links to London where there is a risk of regional connectivity being lost. In June, the Government announced a PSO on the Dundee-Stansted route and the Government will be providing £2.85 million over two years to support the route. Loganair has been operating two daily return flights under this PSO agreement since 1 July 2014. We are also in discussions with Cornwall council on a PSO agreement for a Newquay-London air link from October 2014.
The Chancellor also announced in the budget that the scope of the funding is extended to include start-up aid for new routes from airports handling fewer than 5 million passengers per annum. Officials in my Department are developing guidance to clarify how we expect to implement EU aviation state aid guidelines on start-up aid. I intend to publish this guidance in the autumn.
In the UK, we sometimes take for granted the benefits which come to us from having a well-connected nation and a strong aviation sector. The work of Sir Howard Davies and the Airports Commission is crucial if we are to retain these benefits. Publication of the commission’s final report in summer 2015 will be an important event not just for the aviation industry, but for the national economy more generally.
Rail Infrastructure
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Earlier this year, I commissioned Network Rail to undertake a study to identify options for providing a resilient rail route west of Exeter.
Network Rail has now provided me with this study which is available on Network Rail’s website at: www.networkrail.co.uk/WestofExeterRouteResilienceStudy.pdf. The study considers the options below:
Option 1—Base Case.
Option 2—Strengthening the existing railway.
Option 3—Alternative route A—the former London & South Western Railway route from Exeter to Plymouth via Okehampton.
Option 4—Alternative route B—constructing a modern double track railway on the alignment of the former Teign Valley branch line from Exeter to Newton Abbot.
Option 5—Alternative route C (C1 - C5)—five alternative direct routes would provide a new line between Exeter and Newton Abbot.
Network Rail’s west of Exeter route resilience study reflects the Government’s commitment to delivering world-class transport infrastructure in the south-west. It will be treated as a material input for Network Rail’s long-term planning process and will be incorporated in the western route study, a draft of which will be published for consultation later in 2014.
It is imperative that this work leads to improvements to the resilience of the railways in the south-west that ensure there is no repeat of the disruption we saw earlier this year.
I expect to make a further statement in the autumn regarding the west of Exeter route resilience study and our next steps.
Lower Thames Crossing
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
In May 2013 the Government consulted on options for a new road crossing of the lower Thames between Essex and Kent to the east of London. In December 2013 I announced Government’s decision to discard one of the options and that I was obtaining technical advice on points raised during consultation for the two remaining location options: A (near to the site of the existing crossing) and C (a new link connecting the A2/M2 with the A13 and M25).
I am today publishing the Government’s response to the consultation, referencing the technical advice and outlining the next steps.
The May 2013 consultation invited views on:
the need for a crossing;
where to locate a new crossing; and
the type of crossing, whether by a bridge or tunnel.
The response reflected a broad range of views. Most of those who replied to the consultation agreed that congestion at the existing Dartford crossing and resilience of the surrounding road network were a problem. There was no consensus on how to address these issues.
A number of respondents made the point that the Dartford free flow charging scheme (Dart Charge, the remote payment system to replace the booths) would reduce congestion. Some suggested that this could remove the need for a new crossing altogether, while others believe it would be premature to take a decision until the full benefits are known.
Dart Charge will be introduced from October 2014 and is expected to improve driving conditions on the existing crossing. However, by the middle of the next decade, capacity will be exceeded so that journey times become more unreliable and the surrounding road networks seriously congested.
As part of the M25 orbital route around London, the Dartford crossing is a crucial part of the country’s strategic road network in the south-east of England. More particularly, the adjacent localities are currently less prosperous than comparable areas but have the vision and capacity to continue to undertake large scale development.
There are ambitious plans for new homes and jobs across Essex, Kent, Medway, Southend and Thurrock. The Chancellor recently signalled Government’s support for these plans by announcing the creation of Ebbsfleet Garden City in Kent. Up to £200 million of funding will be made available as improved infrastructure is vital to the prospects for making this happen.
A new crossing is a vital part of our aspirations for a better future both locally and nationally by providing vital links for businesses and citizens within the area, with the rest of the country and further afield to Europe. Our focus must be to identify where and how to deliver that new crossing.
We obtained technical advice on particular issues raised by consultees about the alternate locations for a new crossing. This included possible air quality impacts, potential mitigation of environmental impacts, additional investment likely to be needed on the surrounding road network, and how the two locations could serve the ambitious development plans. The advice has given a greater understanding of the potential impacts of a new crossing at each location, which now need to be considered in more detail.
We will now develop and appraise route options at both locations (options A and C) in order to identify a proposed solution. We will observe the actual effects of Dart Charge once it is introduced and work with local government, the south-east local enterprise partnership, businesses and other key parties to better understand aspirations for growth and implications for the road network.
By undertaking more detailed work on route options at both locations, we will identify solutions that best meet the aspirations of Government and stakeholders, while demonstrating value for money. By taking this approach we will not delay the opening of a new crossing which we currently estimate to be 2025, if publicly funded.
Aviation Security
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
On 2 July the Department for Transport announced that some of our aviation security measures would be stepped up in response to potential threats to aviation from terrorist organisations. The House will be aware that the United States Government made a similar announcement on the same day regarding flights to the United States.
In conjunction with our international partners and the aviation industry, the UK Government keep aviation security under constant review. The UK has some of the most robust aviation security measures in the world and it goes without saying that at all times the safety and security of the public is our paramount concern.
As a result of the changes we are implementing, some passengers may notice additional security measures on some routes, both to and from the UK. Passengers on some routes may also be required to show that electronic devices in their hand luggage can be powered up or face not being allowed to bring the device on to the aircraft. Passengers are therefore advised to make sure electronic devices being carried in their hand luggage are charged before they travel.
This advice is in line with that issued by the United States and we have updated our official advice to passengers accordingly. For obvious reasons we will not be commenting in detail on the measures or the routes affected. We will work with the aviation industry to minimise disruption as far as possible.
I would reiterate that there is no change to the threat level, which remains at substantial.
I know the whole House will recognise the fact that we face a constantly evolving threat from terrorism and must respond accordingly to ensure the protection of the public against those who would do us harm. The update we are making to our security measures is an important part of that process. While we do everything we can, where possible, to minimise the disruption to people’s journeys, we will continue to take all the steps necessary to ensure that public safety is maintained.
HS2 Phase One: Property Consultation 2014
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Further to my commitment in the 9 April decision document “Property Compensation Consultation 2013 for the London-West Midlands HS2 route”, I am today announcing to the House the launch of a consultation on additional assistance for people near the route of phase 1 of the proposed high-speed railway, between London and the west midlands.
The “Property Consultation 2014” sets out two proposals:
An “alternative cash offer” that would give rural owner occupiers within the rural support zone a choice between selling their home to the Government for what it would have been worth had there been no plans for HS2 and remaining in their home and receiving 10% of that value. We would apply a minimum payment of £30,000 and payments would be capped at £100,000. This scheme would launch by the end of 2014 and last until one year after the trains start running; and
A “homeowner payment scheme” that would give rural home owners outside the voluntary purchase area but within 300 metres of the line the opportunity to share in the benefits of HS2 as it would run near them but will not provide them with a direct benefit. We are proposing to taper payments as follows: owner occupiers between 120 metres and 180 metres of the centre line of the railway would receive £22,500, those between 180 metres and 240 metres £15,000 and those between 240 metres and 300 metres £7,500.
The Government are committed to assisting those who are impacted by HS2. These proposals build on the comprehensive package of compensation and assistance which I set out in April.
This consultation will close on 30 September 2014.
High Speed Rail in the North
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Improvements to transport connectivity between the northern cities, including through HS2, through east-west high-speed rail links and road improvements, would be a key driver in realising the potential for the cities of the north to become a “Northern Powerhouse” for the UK’s economy. HS2 is a vital part of our plans to deliver significant transport infrastructure that will not only maximise benefits across the UK, in terms of journey times and connectivity, but will help balance the UK’s economy, drive regional regeneration, support job creation and deliver substantial economic growth.
We are firmly and fully committed to our plans for a high-speed rail network connecting Birmingham, Manchester and Leeds as part of our plans for HS2 phase 2, on which we consulted earlier this year.
In his report, “HS2 Plus”, Sir David Higgins set out his recommendations that the Government should undertake further work on bringing the benefits to the north sooner, improving city centre to city centre and east-west connectivity and enhancing integration with our existing network.
In response to his report five cities—Hull, Leeds, Liverpool, Manchester and Sheffield—are already engaged in a programme of work looking at northern connectivity. I am looking forward to seeing the outputs from this work. I am also very grateful for the responses to the HS2 phase 2 consultation, which we will report on in the autumn.
The Government have now asked Sir David to produce ambitious proposals for connecting the great northern cities. This work will look at how to bring the benefits of high-speed rail to the north more quickly, as well as initial proposals for faster east-west connections—including options on route, time scales and cost—by the time of the autumn statement later this year.
In completing this work Sir David will discuss emerging issues with leaders from the midlands and the north, and will work with Network Rail to ensure this is part of a comprehensive plan for the entire railway network in the north of the country, as well as liaising with the Highways Agency to ensure it is fully integrated with the strategic long-term plans for the national road network, currently being developed. Separately we are continuing to work on improved rail links to Scotland.
HS2 is a key part of this Government’s growth strategy and I am keen to maximise its benefits as we look to deliver economic growth in the north and across the country more generally.
HS2 Safeguarding Directions
Lord McLoughlin Excerpts(9 years, 10 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I can today inform the House that under the Town and Country Planning (Development Management Procedure) (England) Order 2010, I have issued updated and revised safeguarding directions to local planning authorities along the London to west midlands HS2 route. These adjust the previous directions issued in October 2013 to more closely match the description of the scheme set out in the HS2 hybrid Bill and accompanying environmental statement currently before the House.
Safeguarding directions aim to ensure that land which has been earmarked for major infrastructure projects is protected from conflicting developments before construction starts. They also enable many of those who own property in the safeguarded area to serve a blight notice and request that the Government purchase their property under the terms of the compensation code.
As the Government are no longer planning on building a link between HS1 and HS2 at the London end of the railway, the relevant land has also been removed from safeguarding.
HS2 Ltd is writing to all known property and landowners within the relevant areas to notify them of the revised directions, and their effect.
Safeguarding directions also trigger statutory blight procedures under the Town and Country Planning Act 1990. Owner-occupiers of properties within the safeguarded area who wish to move may apply to sell their property to the Government by serving a blight notice. If they meet the relevant criteria they can expect to receive the “un-blighted” open market value of their home, a home loss payment of 10% of the value of their home—up to £47,000—and reasonable moving costs such as legal fees, and stamp duty on a replacement property.
As I announced on 9 April, Official Report, column 19WS, the HS2 express purchase scheme now applies in the surface safeguarded area. The scheme provides eligible property owners with the same compensation entitlement, whether or not their property is required for the scheme. Where an area of land has been removed from the safeguarded area by these new safeguarding directions, the express purchase scheme will remain available to owners of properties in that area—the extended home owner protection zone—for five years. This does not apply to properties along the formerly proposed link between HS1 and HS2, which will no longer be close to the high-speed railway. Full information and maps describing the new directions, as well as guidance and application forms for express purchase and other property compensation schemes, are available at, www.hs2.org.uk or by phoning the HS2 Ltd public enquiries line on 020 7944 4908.
London and Continental Railways
Lord McLoughlin Excerpts(9 years, 11 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
I can today inform the House that the Department for Transport has transferred its 40% stake in Eurostar (held through London and Continental Railways) to Her Majesty’s Treasury.
This is to address any perceived or actual conflict of interests resulting from the interaction between the Government’s stake in Eurostar and the east coast franchise competition, and in particular any perception of bias arising out of the Secretary of State’s shareholding in London and Continental Railways.
Rail Franchising (Inter City West Coast)
Lord McLoughlin Excerpts(9 years, 11 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
Today I have announced the successful conclusion of negotiations for a new directly awarded franchise agreement with West Coast Trains Ltd (Virgin). This deal will see Virgin continue to run passenger rail services on the Inter City West Coast franchise for a period of two years and nine months until the start of the services on the next competed franchise, which is expected in April 2017. The additional benefits secured in this direct award are so great that I have also agreed to terminate the current franchise early so that services can begin on the new terms on 22 June this year.
The new franchise will see significant improvements for passengers during the term of the contract, with benefits totalling around £35 million. This will include more capacity with 5,500 extra standard-class seats per day from a reconfiguration of first-class seating; improvements to on-board wi-fi and the introduction of free wi-fi at all of Virgin’s stations. The operator will also support the Government’s commitment to get more people into work by creating jobs for young and unemployed people, including apprenticeship and traineeship schemes. Investments at stations will see improvements in the quality of waiting rooms, seats and shelters and more than 200 new automatic ticket gates will be installed across the franchise.
New passenger satisfaction, punctuality and cleanliness targets will be introduced on the franchise. These tough new targets will help make sure that Virgin continues to provide improving standards for its 30 million annual passengers. In addition the company will step up its engagement with Network Rail, communities and stakeholders so that all the users of the franchise can have a say in how it can continue to improve services. This includes working with Network Rail to try to improve journey times between London and Scotland, especially through supporting the remodelling of Carstairs junction, a significant bottleneck on the network.
Virgin will also seek permission from the ORR to extend services from London to include some new services between the capital and Shrewsbury and, separately, Blackpool from December 2014. The franchise will also see an improved position for the taxpayer, with increased premiums due to be returned to the Government under this contract.
This agreement is a ringing endorsement of what the rail franchising programme can achieve; working in partnership with the rail industry to deliver better services for passengers and improved returns for Government.
Thameslink Southern Great Northern (Rail Franchising)
Lord McLoughlin Excerpts(9 years, 11 months ago)
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The Secretary of State for Transport (Mr Patrick McLoughlin)
On 23 May 2014, my Department announced its intention to award the Thameslink Southern Great Northern (TSGN) franchise to Govia Thameslink Railway Ltd, pending the successful completion of a standstill period. I am happy to confirm to the House that this standstill period has ended and we completed the contract after the markets closed 11 June. This means that Govia can begin the mobilisation process that will mean the new franchise will begin in September this year.
The TSGN franchise is the largest ever let in terms of passenger numbers and Govia will transform services across the south-east of England during the seven-year term of the franchise. A key aspect of the franchise will be delivering this Government’s £6.5 billion Thameslink programme—a major programme of infrastructure work that is helping create 8,000 jobs and will allow 24 trains per hour to travel in each direction from Blackfriars to St Pancras. New tunnels will link Peterborough and Cambridge to the existing Thameslink route, providing easy access across London via St Pancras to Gatwick and Brighton.
Passengers are at the heart of this franchise and will benefit from improved customer service and nearly 1,400 new electric carriages across the network. These include the new class 700 trains secured by the Government as part of the Thameslink programme, but also two new fleets of trains being procured entirely by Govia. These will provide 50% more capacity and 10,000 extra seats every week day into central London during the morning peak by the end of 2018, and delivering quicker, cleaner and more reliable journeys for passengers and businesses.
This franchise shows the benefits that Government working in partnership with the private sector can bring for the railways through franchising. It is a fantastic deal for the rail industry, passengers and taxpayers.