Airports Policy

Part of the debate – in the House of Commons at 8:01 pm on 17 June 1985.

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Photo of Tony Baldry Tony Baldry , Banbury 8:01, 17 June 1985

I am beginning to think that I am one of the few Members of the House who do not have a constituency interest in the matter. I shall address the House from the national perspective.

Air transport is one of the more successful industrial sectors of the British economy. British Airways, the world's favourite airline, is a major earner of foreign currency, a major employer and one of the most internationally competitive businesses. In contrast with other European nations, the United Kingdom enjoys a second major international carrier and a number of smaller airlines. The United Kingdom must not jeopardise the future of a sector in which it is internationally more competitive than any other member of the European Community.

Further, air transport does not stand alone. It is vital to the competitive position of manufacturing and service industries, which are increasingly dependent upon air transport as international and European marketing and development become even more important.

An island nation, on the periphery of the European Community, cannot afford to lose the competitive advantage in air transport that it enjoys. Because of a common language and history, the United Kingdom will remain the preferred European base for many international airlines. Failure to achieve a viable airports strategy would, in all the circumstances, be economic and national folly. Britain leads, and should continue to seek to lead, Europe in air transport.

No air transport strategy in which capacity falls short of demand can be regarded as successful. Two questions are involved: how much capacity, and when? Mr. Eyre sought to provide estimates of levels of demand which he believed it would be prudent to meet. He did not assert that his figures would necessarily be reached or that they would not be overtaken, but rather that capacity to match demand should be available and capable of operation by the time the levels of demand are reached. He projected that by 1995 demand of 75 million PPA would exist in the London area and 89 million PPA by the year 2000. His figures are drawn from an extensive and thorough review of the evidence then available, based on an examination of the methodologies. It is doubtful whether those figures could be improved.

It follows, therefore, that if the proposals for our airports strategy fail to produce sufficient capacity to match projected demand, that strategy will have failed. To succeed, that demand must be met in the London area and in the regions. We must ensure that capacity is available when and where it is needed. Ideally, new capacity should be available as soon after 1990 as possible.

One substantial misconception must be dealt with before we consider where and when capacity is needed. No part of the airports policy has been as confused or has given rise to such acrimonious debate as the role of the regional airports. Demand is greater in the south-east. Airlines will not develop regional services if there is no demand, and nothing said by the Opposition has managed seriously to bring into question Mr. Eyre's conclusion that there is no shortage of capacity in the regions. There is shortage of capacity in London and the south-east. A sensible airports strategy, therefore, must meet the likely increase in demand in London and the south-east. Prudent consideration requires that 75 million PPA be provided by 1995.

Mr. Eyre concluded that only Stansted could be expanded to cover the shortfall of capacity in the early 1990s, and that to meet demand in the late 1990s and into the next century extra facilities at Stansted and Heathrow would be needed. That is a safe and viable strategy. It is broadly the one that the Government are adopting. By expanding Stansted to 8 million PPA in the near future, and leaving the door open to future expansion at Stansted and Heathrow, the Government are ensuring that there will be sufficient capacity to meet demand for some time.

I wish for a firmer commitment to the construction of a fifth terminal at Heathrow, but I am sensible of the fact that a fifth terminal remains an option should the need arise. During the inquiry, Mr. Eyre commented that hitherto airports inquiries and policy had been characterised by uncertainty. What arises out of the White Paper and these proposals is a sure and considered strategy which seeks to meet demand; a national strategy that will provide sufficient capacity to meet demand at the minimum environmental cost; a strategy that will ensure the maintenance of the unique international status of the United Kingdom's air transport system; and a strategy that will ensure that Britain continues to be a world leader in air transport well into the 21st century. That is a strategy which will ensure that we continue to be competitive in a business where, for once, we lead Europe. It would be folly to jeopardise that lead unless we must.