Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps he is taking to ensure that expansion at Heathrow airport is compatible with legal air quality limits.
Answered by Jesse Norman
Following designation of the Airports National Policy Statement, it is now down to an applicant for development consent to undertake a detailed assessment of the air quality impacts of the scheme, including during construction, and put forward to the Planning Inspectorate an appropriate package of mitigations that addresses air quality impacts and demonstrates compliance with air quality obligations.
In order to grant development consent, the Secretary of State would need to be satisfied that, including any mitigations, the scheme would be compliant with legal obligations.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what his Department's definition is of private finance in relation to infrastructure projects.
Answered by Nusrat Ghani
Private finance is a way to deliver infrastructure projects in which the private sector invests equity and/or lends in order to facilitate the development, delivery, acquisition, and/or operation of a project, asset or entity with the expectation of earning a return on the investment commensurate with the risk.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of expansion at Heathrow Airport on (a) particulate emissions and (b) nitrogen oxide levels.
Answered by Jesse Norman
The Appraisal of Sustainability (AoS) that accompanies the proposed Airports National Policy Statement (NPS) provides a strategic level assessment of the potential social, economic, and environmental impacts of expansion, including on air quality. The AoS has been published on the DfT’s website and the relevant information can be found at: https://www.gov.uk/government/publications/appraisal-of-sustainability-for-the-proposed-airports-national-policy-statement
Should the proposed Airports NPS be designated, then it would be for the promoter to undertake a detailed assessment of the air quality effects of the scheme, and put forward an appropriate package of mitigation measures.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the long-term sustainability of any jobs created by expansion at Heathrow Airport.
Answered by Jesse Norman
The Department for Transport has estimated the number of additional local jobs expected to be created by airport expansion in both 2030 and 2050. The Heathrow Northwest Runway scheme is expected to generate between 57,000 and 114,000 additional local jobs by 2030, and between 39,000 and 78,000 additional local jobs by 2050.
Additional jobs are a result of higher passenger traffic being generated at the airport. Expansion at Heathrow will lead to a significant increase in passenger numbers, which will continue beyond 2050. This is expected to create local jobs that are sustainable in the long-run.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of higher landing charges at Heathrow Airport on (a) the UK's and (b) Heathrow Airport's global competitiveness.
Answered by Jesse Norman
Airport charges at Heathrow Airport have fallen by almost £2 per passenger in real terms since 2014. In the context of expansion, the Civil Aviation Authority will determine an appropriate level of airport charges in line with its statutory duty to further the interest of consumers. The Secretary of State also set out a clear ambition in 2016 for airport charges to remain as close as possible to current levels.
The Airports Commission found that if there were any increase in charges at Heathrow as a result of expansion this would likely be absorbed by airlines, with passenger fares remaining unaffected or even falling further after the capacity constraints are released. The Government is also clear that the expansion of Heathrow will provide a significant boost to passengers and the wider economy even if airport charges were to increase modestly, and were passed on to passengers.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has undertaken an assessment of the financial viability of using public service obligations to support regional airports; and if he will make a statement.
Answered by Jesse Norman
As the Department’s ‘Guidance on the Protection of Regional Air Access to London’ states, the Department will conduct a Value for Money assessment on the economic case for any bids for funds. This was undertaken on each of the existing PSO routes to London, from Newquay, Dundee and Londonderry.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, how much funding the Government has allocated to support a connection to an expanded Heathrow Airport from regional airports.
Answered by Jesse Norman
The Government expects that the majority of domestic routes will be commercially viable, as many are today, with support from Heathrow Airport. This support includes discounted charges for domestic passengers at Heathrow, and a £10 million Route Connectivity Fund for domestic services to and from Heathrow.
The Government will also take action, where appropriate, to secure routes through the use of Public Service Obligations (PSOs). PSOs provide the opportunity to offer exclusive rights to airlines to operate a route. The Government currently provides subsidies for three PSO routes to London: Newquay to Gatwick; Londonderry to Stansted; and Dundee to Stansted.
The Government’s approach to domestic connectivity will be set out in a Green Paper on the Aviation Strategy towards the end of this year, and the extent to which subsidies may be required can only be determined subject to market conditions nearer to the time at which new capacity becomes operational.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has made an assessment of the effect of the UK leaving the EU on the financial viability of the proposal to expand Heathrow Airport.
Answered by Jesse Norman
The Government and its advisers have undertaken considerable assurance work on the financial viability of Heathrow Airport Limited's scheme. Given the transformative nature of the scheme, there will inevitably be various risks and challenges that need to be addressed as the scheme design and regulatory framework are developed. The Government’s independent advice has concluded that, so far as can be assessed at this early stage of the process, in current market conditions Heathrow Airport Limited appears in principle to be able to finance expansion privately without Government support. This includes taking into consideration the effect of the UK leaving the European Union.
The Government is not publishing the financial assurance work that has been undertaken as it is based on and contains information provided in confidence, and to do so would prejudice commercial interests. Separately, the Civil Aviation Authority has published its own view that there are credible scenarios in which expansion can be financed and delivered affordably. This can be found online at:
(http://publicapps.caa.co.uk/docs/33/CAP1658EconomicregulationofcapacityexpansionatHeathrow.pdf)
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, if he will publish any assurance work undertaken by his Department on the financial viability of the proposal to expand Heathrow Airport.
Answered by Jesse Norman
The Government and its advisers have undertaken considerable assurance work on the financial viability of Heathrow Airport Limited's scheme. Given the transformative nature of the scheme, there will inevitably be various risks and challenges that need to be addressed as the scheme design and regulatory framework are developed. The Government’s independent advice has concluded that, so far as can be assessed at this early stage of the process, in current market conditions Heathrow Airport Limited appears in principle to be able to finance expansion privately without Government support. This includes taking into consideration the effect of the UK leaving the European Union.
The Government is not publishing the financial assurance work that has been undertaken as it is based on and contains information provided in confidence, and to do so would prejudice commercial interests. Separately, the Civil Aviation Authority has published its own view that there are credible scenarios in which expansion can be financed and delivered affordably. This can be found online at:
(http://publicapps.caa.co.uk/docs/33/CAP1658EconomicregulationofcapacityexpansionatHeathrow.pdf)
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what policies the Government plans to adopt to ensure that expansion at Heathrow airport does not result in continued breaches of legal limits on air quality.
Answered by Jesse Norman
The Government believes that the Heathrow Northwest Runway scheme can be delivered without undermining the UK’s compliance with air quality limits, given the measures set out in the Government’s Air Quality Plan. The Government’s view has been informed by the air quality analysis of the Northwest Runway scheme, which was published in October 2017. It should be noted that this does not take into account scheme specific mitigations that any applicant could take forward to address its air quality impact.
The proposed Airports National Policy Statement (NPS) requires the applicant to consider an extensive range of air quality mitigation measures, potentially including an emissions-based access charge. Development consent will only be granted if the Secretary of State is satisfied that, with mitigations, the scheme would be compliant with legal obligations on air quality.