Address to Airlines UK on Heathrow engagement
The importance and need for continuing communication and support for the proposed runway at Heathrow.
Good afternoon everyone – and welcome.
It’s great to see so many of you here.
So thanks for coming along today (24 May 2018).
Precisely 50 years ago, Harold Wilson’s government set up the Roskill Commission.
Tasked with finding the best place to build a new 4-runway airport for south-east England.
They weren’t the first to consider the issue.
And they certainly weren’t the last.
Yet half a century later…
Despite countless consultations, inquiries, commissions, reports and white papers…
The key question of how we secure our long-term hub capacity in the south-east…
And maintain London’s position as one of the best connected cities in the world…
Remains unanswered.
But today as the government makes its final considerations ahead of a likely vote in Parliament this summer on the new runway at Heathrow.
We are closer than ever before to providing that answer…
And delivering the long-term capacity…
That passengers need…
That airlines need…
That London needs…
And that the whole country needs.
I cannot of course pre-empt the government’s final decision.
That will come after carefully considering all the consultation responses and the Transport Committee’s recommendations.
But if we do lay a final version of the Airports National Policy Statement (NPS) for a vote in Parliament, it is vital we build the necessary support.
The next few weeks are therefore crucial.
They are the culmination of a massive amount of work.
Not just by Heathrow, but by government, by the Airports Commission, and the wider aviation industry – over many years.
The public consultations alone prompted over 80,000 responses.
But that doesn’t mean we can’t continue to build support for the project at this late stage.
No matter how familiar we are with its benefits…
It is absolutely vital that we keep articulating the case for the proposed runway…
Getting our messages across to those who may be unaware of the huge economic implications of this decision.
Above all, this is a decision that should be taken in the national interest.
A massive infrastructure scheme that would create tens of thousands of local jobs and apprenticeships.
And very many more in the wider economy.
That would increase choice and value, with cheaper fares and fewer delays for passengers.
And that would boost domestic connections.
Plugging every region of Britain into the global economy.
But Parliamentary support is far from a done deal.
I cannot stress that enough.
So over the coming days and weeks, we must continue to hammer home our message.
Why new hub capacity is so important to Britain.
With Heathrow already losing ground to competitors like Paris, Amsterdam and Dubai.
And with demand for air travel growing even faster than we thought a few years ago.
We need to make clear the implications if Heathrow cannot grow.
For tourism.
For inward investment.
And for businesses and jobs.
So I urge everyone here…
In the run up to any parliamentary vote this summer, when these issues will be debated at length in the media…
To give vocal support to the scheme.
To explain that this is about growing in a responsible and sustainable way…
In compliance with our climate change and air quality obligations…
Supported by a world leading package of compensation, and measures to limit the effects on local communities.
But there’s a much wider message that Heathrow expansion will send to the rest of the world.
That modern Britain is open for business.
That we’re a confident, growing country.
And that we’re ready to embrace a truly global future post Brexit.
But although the issue of capacity is at the heart of the debate, it’s important that we continue to make progress on the design and management of the proposed scheme.
Back in October 2016, I commissioned the Civil Aviation Authority (CAA) to provide me with quarterly advice on how Heathrow was engaging with airlines.
Also known as the CAA’s “section 16 commission”.
Through this formal engagement, Heathrow identified possible savings of up to £2.5 billion.
Evidence that the process was achieving its main aims.
But that finished last month.
So today I can announce that I am recommissioning this formal arrangement.
The successor to the section 16 commission.
So if the NPS proceeds.
The CAA will continue to oversee engagement between airlines and Heathrow until a formal planning application is made.
And once again report back to me on the quality of the discussions.
With extra independent scrutiny also being given by industry experts.
This time, I really want to challenge the industry to focus on 4 key areas.
Costs.
Consumers.
Value for money.
And inclusivity – so discussions aren’t limited to the same organisations and companies as last time.
Let me take each of those in turn.
First, costs.
It remains one of my fundamental priorities to deliver the ambition I set in 2016 – to keep airport charges as close as possible to current levels.
So price increases are not passed on to airlines, and ultimately consumers.
I welcomed the confirmation that all parties are working towards this ambition.
The CAA will continue to report to me on progress towards the shared goal of expansion at the right cost.
And it has powers to ensure the scheme is fairly priced.
It’s also important that airport expansion works for consumers.
I want the interests of current and future airport users to shape the plans.
So the CAA will help champion customers during the discussions…
Both passengers and freight…
Reflecting its main statutory duty within the Civil Aviation Act.
Of course we recognise that there’s little point in choosing the cheapest possible option if it is not going to benefit consumers.
But equally Heathrow’s customers should not pay for a ‘gold plated’ solution.
That’s why I welcomed Heathrow’s search for commercial delivery partners.
And while this must not delay progress, we should all be open minded to ideas that could benefit the consumer.
So the expansion of the airport must provide value for money to every party.
And I’ll be looking for evidence of this in the CAA’s reports.
One way we can achieve this.
And encourage competition in the market.
Is to have more airlines represented during the formal engagement process.
Previously, discussions just featured carriers holding current slots at Heathrow.
This time round, we will include new and growing airlines…
Widening the debate…
And ensuring that the views of future customers are also reflected.
Finally, several leading industry figures are reviewing work undertaken so far.
To keep costs and project management carefully under the spotlight.
This will help us judge performance and efficiency, and ensure that the any scheme meets the challenges I’ve spoken about today.
So to sum up.
A thriving and successful aviation sector is fundamental to our modern economy.
But our main hub airport is now full.
And expansion is long overdue.
I believe that a failure on behalf of government and Parliament to reach a final decision would be an act of national self sabotage.
If we fail to act this time, who knows when we’ll next get an opportunity?
How long would we have to wait to get this far again?
And what message would that send about our ambitions for Britain’s future?
It is time to settle - once and for all - a debate which governments have been wrestling with for far too long.
So let’s put decades of dithering behind us.
Let’s get out there and make the case.
And deliver for the benefit of the whole country.
Thank you.
Transport Secretary challenges industry to balance expansion costs press notice, 24 May 2018