Blackpool Airport: Public Service Obligation Funding

Debate between Jesse Norman and Robert Courts

Tuesday 6th December 2022 Westminster Hall

[The Minister of State, Department for Transport (Jesse Norman)]

It is a delight to see you in the Chair, Mr Gray. I am also delighted to respond to the very good speech and useful interventions made by my hon. Friends the Members for Fylde (Mark Menzies), for Witney (Robert Courts) and for Blackpool South (Scott Benton). I am a man with a family background in general aviation. Many years ago, I got a private pilot licence, and my uncle designed the Britten-Norman Islander. I do not know whether Members recall the moment in the James Bond film “Spectre” when the plane is flying along and gets its wings knocked off and goes skiing. That was a Britten-Norman Islander designed by my uncle, so we have a certain amount of traction in this field, and a certain sympathy for the issues raised by my hon. Friend the Member for Fylde.

Let me be clear that within the Department for Transport we recognise the importance of Blackpool airport to the region. We also recognise it as the centre of the Blackpool airport enterprise zone, set up as a hub for business, medevac, flying schools and general aviation. I note that this is the second debate that we have had this year on this topic, or a related topic. I thank my hon. Friend the Member for Blackpool South for his earlier debate, which I note that my hon. Friend the Member for Witney responded to very ably as the Minister. There is a certain circularity here, but there is also a sense of energy and purpose that all three of my hon. Friends have rightly brought to the issue. I thank them very much for what they have said.

As my hon. Friends have been at pains to emphasise, the UK enjoys what is in many ways a world-leading competitive commercial aviation sector, with airports and airlines operating and investing to attract passengers and respond to demand. Airports themselves have a key role to play as part of the sector. Where opportunities for growth exist, local partners can come together with the industry to develop the business case for new commercial flights. My hon. Friend the Member for Fylde rightly focused on the key goals of commercial development and sustainability of the airport, levelling up, and Union integration.

It is for airports, local authorities, local enterprise partnerships, local businesses and other stakeholders to try to come together to build the case for commercial flights and work with airline partners to create new connections for their communities. Airlines will ultimately determine the routes they operate based on their own assessment of commercial viability. As my hon. Friend the Member for Fylde said, it is notable that Blackpool has a proud history of innovation in this area as well as a historically thriving tourism industry. The airport was used as recently as 15 or so years ago—perhaps even less. We need to consider the question of the commercial development of the airport in the context of the wider processes of levelling up and regeneration.

As hon. Members will know, air travel is provided almost entirely by a competitive market. There is no bespoke funding or support from Government for new routes, but there is support for domestic connectivity. The 50% reduction in domestic air passenger duty was designed to provide that support. It was part of a package of air passenger duty reforms. There was a new reduced domestic band to support regional connectivity and a new ultra-long-haul band to align air passenger duty more closely with environmental objectives. That begins from April next year.

The question of a targeted APD is very interesting. I have no doubt, speaking as a former Treasury Minister in part, that the thought of a hypothecated or targeted APD will cause severe tremors and, dare I say, nervous palpitations within the Treasury—for many understandable and obvious reasons. As Ernie Bevin once said in a different context,

“Open up that Pandora’s box, you never know what Trojan horses will jump out.”

[Robert Courts]

The Minister makes a good point. The 50% APD cut was welcome, but my point is about what the Department calls open PSOs. Those are not a further Treasury subsidy, but simply the removal of APD on routes that are non-operational—where the Treasury is getting no revenue or marginal revenue. There is a business growth opportunity there. That is what I am asking him to push the Treasury on, though I appreciate it is not in his gift.

[Jesse Norman]

That clarification is very helpful. There is a way of thinking with open PSOs that is not just tied to APD, but I will come back to the question of PSOs in general.

We have some support for administered connectivity through domestic APD. We are continuing to explore alternative routes and are seeing whether there are other ways to address this. In the context of PSOs, I will lay a slightly different emphasis from my hon. Friend the Member for Fylde. It is important to recognise that the PSO policy as it presently is set up is designed to support not new flight—that is the question being raised by my hon. Friend the Member for Witney—but routes that have previously been operated commercially or are now at risk of being lost.

The question of new routes is somewhat different. The routes that are funded at the moment, at least across the UK, are modest. There are three public service obligations: from Londonderry/Derry to Stansted, Newquay to London Gatwick, and Dundee to London City. An additional 17 PSOs connect the highlands and islands of Scotland, which are wholly within the borders of Scotland. The administration and funding of those, by agreement with the Department for Transport, is the responsibility of the Scottish Government.

We operate within a context of existing policy. To the point about the stance of the local authority, as raised by colleagues, it is important to say that my officials have so far received no requests from the local authority to discuss the need for any PSO routes from Blackpool airport—I will leave local colleagues to decide how they want to interpret that. Of course, if there was going to be PSO support, it would have to be initiated and agreed with the local authority, and the fact that we have heard nothing from them is not helpful to the cause being promoted.

As I say, PSOs are considered in the context of commercial services that either are at risk of being lost or have recently—generally speaking, within the past two years—been lost. The loss referenced by my hon. Friend the Member for Fylde goes outside that remit and therefore does not fit within the existing policy. If and when it did apply, which would undoubtedly be part of the same process as the consideration of any new routes in the future, which I will come on to shortly, it would be through a business case, warmly and widely agreed locally, in which the local authority would play a leading role. That is very important. Hon. Friends will be aware that levelling up works effectively only when everyone is lined up in the same way. When business, the local authority, local Members of Parliament and other key stakeholders are so lined up, it can be enormously effective and successful.

As a reminder to all, eligible routes should be ones in which there are historically no viable alternative modes of travel and where it is deemed and demonstrated to be vital to the social and economic development of the region.

It is important to say that if and when a PSO is granted under the current policy, there must then be a procurement exercise to find an airline, which, in turn, needs to be a full and open tender for selection. The subsidy provided is based on the airline’s operating losses on that route, which it must submit as part of a tender bid. It is a very context-dependent decision. Of course, those things would be independently assessed, as any new approach would have to decide how, where there had not been a prior existing commercial flight, a non-distortive method of subsidy and support could be provided.

Let me pick up a couple of points relating to the Union connectivity review that were rightly raised by colleagues. As hon. Members will recall, in November 2021, Sir Peter Hendy published an independent review designed to explore how improvements to transport connectivity between Scotland, Wales, Northern Ireland and England could boost not just economic growth but access to opportunities, everyday connection and social integration. The review identified the key importance of airports and air connectivity by providing connectivity both into London and in and between peripheral regions, which gets to the points raised by colleagues today.

As hon. Members might imagine, the Government are considering our response to the Union connectivity review, and my colleague Baroness Vere leads on the issue of aviation. Our response will be Department-wide, because it is a multimodal strategic review in nature. As part of that, we are exploring further opportunities to utilise PSOs in order to support regional connectivity and the levelling-up agenda.

My officials have already been actively considering how airport slots are allocated in the UK. Now that the UK has left the EU, there is an opportunity for the Government to legislate to improve the slots system to ensure it provides the connectivity that UK passengers need. That can be expected to have knock-on effects on economic growth around the country.

Regional airports play an important role in levelling up. It is important to recognise that that is not just about the foundation of the wider UK aviation sector; it is also about the business opportunities that can be directly generated as a result of the supply chains and other enterprise engagement. Members will recall that the Government published a strategy on the future of aviation, “Flightpath to the future”, which sets out a vision for the sector over the next 10 years. It includes not just connectivity, which we have discussed, but workforce, skills, innovation and decarbonisation.

We expect a naturally low-carbon approach to the regeneration of any new airports for all the reasons my hon. Friend the Member for Fylde set out. That is a potential source of advantage if it is properly handled. It is our goal that UK domestic flights should be net zero by 2040, and airport operations, which are an important potential ancillary contributor to carbon emissions, should be zero emission by 2040. We are providing significant support for that, not just for sustainable aviation fuels but for the commercialisation of those plants and other research and development co-investment —in particular, through the Aerospace Technology Institute. Alongside that, the levelling-up agenda, jet zero and net zero provide the context within which there can be diversification, a deepening and broadening, and a very significant boost to the activity conducted in and around airports.

I want to give my hon. Friend a moment to respond—

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 21st March 2019 Commons Chamber

[Jesse Norman]

I think the hon. Lady is absolutely right, and I very much salute her support for disabled people. She can have a word with the Secretary of State and, on her side, the shadow Secretary of State on the issue of disabilities. Walking is a very important part of the same issue. We are in the process of working very hard on a pavement parking review—it is coming towards the end of its work—and we are also working on the question of micro-mobility and how we regulate that. Both those issues are going to bear very closely on the question of how we think about enforcement against cyclists and other users of pavements who make life difficult for walkers.

[Robert Courts (Witney) (Con)]

With the disappointing news in the last couple of days that Oxfordshire County Council has had to remove the B4044 cycle path from its housing infrastructure fund bid, first, will the Minister comment on what he is doing to work across Departments, particularly with the Ministry of Housing, Communities and Local Government, to provide cycling as a way of helping with new housing; and, secondly, will he commit to working with me and Oxfordshire County Council to provide the B4044 bid as a stand-alone bid, so that we can get the cycle path we need?

[Jesse Norman]

I am happy to look at that. I met Oxford City Council, including its cycling champion and the leader of the council, just recently on these issues. Let me make one other point, which is that the advent of e-bikes—the Department is supporting them, and further news about them has been given this week—will also open up further housing opportunities around the country in a way that can only be good both for housing and for future personal health.

Road Safety

Debate between Jesse Norman and Robert Courts

Monday 5th November 2018 Commons Chamber

[Jesse Norman]

As hon. Members know, there are many widespread and varying estimates of the backlog. The Government are putting in place a comprehensive programme. We have already seen the largest investment in strategic roads for, I think—in real terms, certainly—the last generation or more. I would like to think that the excellent investments that we have made in pothole fixing will continue in the years to come, but the hon. Gentleman will know that these things are ultimately dependent on the spending review to be announced next year.

Ministers and Members of Parliament receive plenty of correspondence on the matter of potholes. The condition of the road also regularly appears among the top concerns in public opinion surveys, and this was a major issue raised by respondents to our recent cycling and walking safety review call for evidence. That is why a further £420 million was made available to highways authorities in England outside London for highway maintenance—to support authorities to keep bridges and other structures safe and open, to help repair potholes or stop them forming, and to undertake further minor highway works where necessary. We will be announcing individual allocations to highways authorities shortly, but I am sure that Members across the House will welcome this funding, which comes in addition to over £6 billion that we are providing to local highway authorities in England outside London between 2015 and 2021, including £296 million for a pothole action fund, which is being allocated to local highway authorities between 2016 and 2021 to help repair potholes.

The Chancellor also announced a further £150 million in the Budget to improve local traffic hotspots such as roundabouts. It is our intention that this funding will help to improve existing local road junctions, to ease congestion bottlenecks and to improve reliability—not only to improve access, but to make sure that these junctions are safer for all road users. Further details will be announced in due course.

Infrastructure is one thing but effective education is another. We are improving training for new drivers to familiarise them with the conditions that they will encounter on the roads. The Driver and Vehicle Standards Agency is developing new materials to improve learners’ awareness of hazards in different weather and lighting conditions. As the House will be aware, new legislation is in force allowing learners on motorways when accompanied by an approved driving instructor. Learner drivers are already gaining experience and we will have a new generation of drivers who are confident in using our motorways.

We are also taking action against the most dangerous kinds of behaviour. Evidence repeatedly shows that the use of mobile phones, and drink and drug driving, give cause for concern. Tackling these dangerous forms of behaviour has long been an element of our road safety strategy.

[Robert Courts (Witney) (Con)]

The Minister rightly draws attention to some of the dangerous behaviours that people display when driving. May I return to the issue of horses? Would he consider asking for the Highway Code to be amended to incorporate the British Horse Society’s “Dead Slow” advice?

[Jesse Norman]

The topic has already been raised. As I have pointed out, there is already guidance relating to horse riders in The Highway Code. I am always delighted to take further suggestions from colleagues and will look further at the question that my hon. Friend raises in the light of this debate.

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 11th October 2018 Commons Chamber

[Robert Courts (Witney) (Con)]

As a regular user of the A44 cycle path, I have seen many of the benefits that cycling can bring. As we look for improvements to the A40 and the Cotswold line to address congestion, does the Minister agree that cycling plays an essential part in an integrated transport network for West Oxfordshire?

[Jesse Norman]

Yes, we feel very strongly that for both the strategic network and local roads there is more scope for integration, and much of the investment we are making through both Highways England designated funds and local road investment is designed to support that integration.

Potholes and Road Maintenance

Debate between Jesse Norman and Robert Courts

Tuesday 5th June 2018 Westminster Hall

[Jesse Norman]

Of course that is right. Flood resilience and other funding has been made available, and can be tweaked in response to that. Many local authorities were not prepared for the severity of last winter and the repeated freezes that damaged our roads. My hon. Friend is absolutely right. The wider point is that, as part of a strategic and longer-term view of local roads funding, we can create greater resilience in the network as a whole so that those kinds of events can be better dealt with.

[Robert Courts]

I am very grateful to the Minister for giving way. He is being very generous with his time. He spoke of a strategic approach to funding, but will he also consider a strategic approach to rural roads? In many parts of Oxfordshire—particularly west Oxfordshire, where I am—we are essentially dealing with cart tracks that have been tarmacked at some point and need long-term maintenance. Will he consider that point?

[Jesse Norman]

I very much do consider that point. I live in a rural consistency that has urban roads in Hereford and lots of rural roads around it, so I take both sides of that argument extremely seriously. The facts are interesting. Although there has rightly been a lot of concern about the recent effects of the winter, A and B roads have gradually improved, by and large, as our annual road conditions survey work shows. It may well be that, as we look at the effect of the last quarter or two, that picture will have changed due to the severity of the winter, but that is the overall picture. However, that does not address the issue of C and U roads, which are a further cause of concern, and my hon. Friend quite properly raises it.

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 24th May 2018 Commons Chamber

[Robert Courts (Witney) (Con)]

13. What funds he has recently made available for the repair of local roads.

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

The Department for Transport is providing just over £6 billion to local highway authorities in England, outside London, for highways maintenance funding from 2015 up to 2021. Of course, my hon. Friend will be aware of the £296 million pothole action fund.

[Robert Courts]

I welcome the prospect of upgrades to main roads in west Oxfordshire, financed through the housing infrastructure fund and the growth deal, but what are Ministers doing to ensure that small rural roads in areas such as West Oxfordshire, which often bear the brunt of winter damage, are not neglected and are also maintained to a high standard?

[Jesse Norman]

My hon. Friend is absolutely right to raise that point, especially in the light of the recent very bad bouts of weather we have had, which have particularly affected local roads. Until then, it was true that the A and B roads were improving over time but that that leaves out the C and the U roads. A more strategic approach needs to be taken to that, and I am planning to do that in the months to come.

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 1st March 2018 Commons Chamber

[Jesse Norman]

I absolutely recognise the campaign that the hon. Lady fought, and I think it is very worthwhile. I slightly doubt whether what she suggests is in fact the case, but attempts can of course be made within the rules. This is a very narrowly defined piece of legislation that focuses very specifically on permitting and on trailer registration, so there may not be scope to add other things, but I continue to be delighted to talk to her about the campaign that she is waging.

[Robert Courts (Witney) (Con)]

From the need for a final fix to the A40 to urgent upgrades to the Cotswold line, the need for a boost to west Oxfordshire’s transport is now acute. Will Ministers agree to work with me to make it happen?

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 18th January 2018 Commons Chamber

[Jesse Norman]

I do not recognise the description that the hon. Gentleman gives. I have been up and down the country talking to community transport schemes. It is not at all clear that the implication for local community transport operators will be anything like as severe as has been suggested, and the one case that has been tested has been referred back for further evidence gathering.

[Robert Courts (Witney) (Con)]

I am grateful to the Minister for recently visiting my constituency, where he saw the great work being done by Our Bus Bartons. He will know that such companies all over the country are urgently seeking reassurance, but can he clarify whether any action proposed by the transport commissioner reflects upon the consultation that is taking place, or whether the consultation will be taking place in any event?

[Jesse Norman]

The consultation will be taking place in any event, and the details will be announced shortly. I greatly enjoyed my visit to see the Our Bus group, which is a model of good practice in local community transport.

Oral Answers to Questions

Debate between Jesse Norman and Robert Courts

Thursday 19th October 2017 Commons Chamber

[Jesse Norman]

To answer on my right hon. Friend’s behalf, I should say that the answer is in so far as the situation allows us to. As the hon. Gentleman will know, we have not ruled out legal action of our own. We are waiting for the German legal authorities—under European law, given the origin of these technologies—to make their decisions. Once they have done that, we will take a final view. But we have been extremely clear about our view in general about how the company has behaved.

[Robert Courts (Witney) (Con)]

T4. Community transport plays a vital role in connecting communities in rural areas in west Oxfordshire and throughout the country. Such groups are worried about the impact of the issue and use of section 19 and 22 permits. Will the Minister confirm that if local community groups are registered as not-for-profit organisations, they will not be treated as commercial providers even if they pay a driver and take a fare?

[Jesse Norman]

I have two things to say. First, we very strongly support community transport operators in general. Secondly, we have been under some pressure to clarify the rules regarding local transport operators who are tacitly operating commercially. I am sure that that is not the case in Oxfordshire, but it is in other parts of the country. If my hon. Friend’s transport authority has a difficulty, he is welcome to get it to talk to my officials and/or the Community Transport Association.