Estimates Day — [2nd Allotted Day] — Supplementary Estimates, 2003–04 — Aviation Servives — Department for Transport

Part of the debate – in the House of Commons at 2:35 pm on 11 March 2004.

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Photo of Louise Ellman Louise Ellman Labour/Co-operative, Liverpool, Riverside 2:35, 11 March 2004

I, too, welcome the publication of the aviation White Paper after a gap of 20 years. I particularly welcome the parts of the White Paper that dwell on the points highlighted by the Transport Committee report on aviation, which examines the connection between the development of regional economies and transport in general, and aviation in particular.

I note that the estimates refer to

"Promoting a modern, integrated and safe transport system" but I wonder whether the references to resources for aviation services take account of regional aspects, whether the Department for Transport links up with other Departments to examine joined-up action to enable regional economies to develop to their full potential and whether the Department recognises the importance of transport links in general and aviation links in particular.

The Select Committee report stresses the importance of air links to regional development and discusses the inadequacy of spending billions of pounds on regional development without making that link. Indeed, the report states:

"There has to be cohesion between regional economic policy and transport policy. It is absurd to put billions of pounds in the regional aid budget and yet not to give any assurance to provide guaranteed air access".

There is nowhere to which that is more relevant than Liverpool and Merseyside in general.

Liverpool and Merseyside are objective 1 areas. That means that they receive large amounts of European funding, which is then matched by public and private sector funding from this country, to promote the regional economy. That funding has already achieved some success: the economy of Liverpool in particular and Merseyside in general is indeed being transformed. We have a major opportunity because Liverpool has been designated European city of culture for 2008, which is a tribute to Liverpool's achievements and recognition of its potential. In fulfilling that potential, it is vital that in the years up to 2008 and beyond we facilitate easy access to Liverpool for the many tourists and business visitors from not only the rest of this country and Europe but, indeed, across the world.

Liverpool John Lennon airport has already shown how to bring success to air travel. It is the fastest-growing airport in the country and has served 3.18 million passengers in the past year. I know that in comparison with other airports, including Manchester International, that might seem a relatively small number of passengers, but the dramatic increase in business is a great tribute to the work of the management and owners. Those numbers are destined to increase significantly to 5.5 million by 2015 and 8.6 million by 2030.

The airport's success has been built on the great increase in its scheduled flights as well as in its charter flights—there are scheduled flights to destinations such as Dublin, Alicante, Geneva, Amsterdam, Madrid, Paris and Barcelona. I say to Mr. Marsden that the rapid expansion of John Lennon airport has opened out the opportunities for air travel for people from middle and lower-income groups, which is welcome and should be built upon—it should not be penalised and seen as something detrimental. That increase in opportunities is welcome and should be encouraged.

During the past month, Liverpool has restored a direct flight to our capital, London, with a VLM Airlines flight to London City airport. That is a success, but it is a shame that Liverpool lost its access to a hub airport in London when British Midland withdrew its flights—for the very reason set out in the Committee's report and mentioned in the debate—not because they were not profitable, but because it was more profitable for the company to use its aircraft for other European flights.

John Lennon airport has shown what it can do to develop the local, sub-regional economy, to bring visitors and to encourage business. What Liverpool now needs, to enable us to make that major leap forward and grasp the opportunities provided by the city's designation as European capital of culture, is access to a hub airport, which would provide interlining, direct bookings and no repeat check-ins from airports all over the world. People could then come to Liverpool easily, from Shanghai to Sydney, New York to New Delhi, Los Angeles to Lagos—in other words, from throughout the world. It is essential that we have that link with a hub airport.

The Government's response to the Committee's report suggests that they recognise the importance of linking regional airports with hub airports in our capital and it suggests some measures to try to make that possible. While I welcome those measures, I do not think that they go far enough. The White Paper mentions public service obligations—PSOs—and the possible introduction of such measures to link up airports such as Liverpool with London hub airports. The White Paper mentions consultation on the detail of what would enable an airport to qualify for a PSO, but there has been no consultation so far. Nor has any guidance been issued on what the criteria might be. Perhaps my hon. Friend the Minister could say when such consultation might start and when the criteria will be issued.

I welcome the reference in the White Paper to the role that regional development agencies might play, including the route development fund, but that is not enough. We need to know more about the resources available, and I would like to see the Bill on the powers for the anticipated directly elected regional assembly for the north-west, which will be published shortly, include some clearer transport powers, so that the assembly would be able to facilitate a direct link.

It is clear that the Government have recognised the points that have been made by the Committee and others about the importance of transport and aviation to regional economies, and the Government have made some suggestions. It says in the White Paper:

"Airports are an important focus for the development of local and regional economies. They attract business and generate employment to open up wider markets."

That is an accurate statement for many regions, especially Liverpool. I hope that my hon. Friend the Minister can say what further steps the Government will take to make their aspirations a reality and enable John Lennon airport—and other regional airports—to play a full part in developing the local economy, to support jobs and prosperity for the people of the region.