Aviation white paper, airport plans, air traffic and sustainability

Speech by transport minister Derek Twigg on the progress of the Government's aviation policies.

Introduction

First, let me offer my apologies on behalf of my colleague Karen Buck. Unfortunately, she had agreed to another speaking engagement today and has commitments in Parliament.

But I'm delighted to be able to deputise on her behalf and give an update on the progress of the Government's Aviation White Paper.

Capacity has become an issue, and regrettably, successive Governments failed to look ahead and tackle it head on. This state of affairs was no longer acceptable. If the industry was to plan ahead, then the nettle had to be firmly grasped.

The Aviation White Paper, the first in almost 20 years, provides a much needed strategic framework. But although the industry has seen tremendous growth, the White Paper is not about sanctioning limitless growth at any cost.

There has to be a balance between the needs of industry and our environmental objectives. And the impact aviation has on local communities has to be recognised.

Sustainable aviation

I'm pleased to say that the industry has collectively taken a significant step in addressing the environmental impacts of air transport. Only last week it launched its sustainable aviation strategy.

This set out voluntary commitments from airports, airlines and manufacturers to address the environmental targets contained within the White Paper.

It included confirmation of the industry's commitment to improve fuel efficiency by 50% per seat kilometre and a reduction in NOX emissions by 80%. We welcome this initiative and the progressive co-operation across the industry which it demonstrates.

Other developments

This aside, much has happened since the launch of the White paper in December 2003.

For example, Terminal 5 at Heathrow is beginning to take shape. Scheduled to open in 2008, the outer shell of the building is nearly complete. And as well as enabling the airport to handle up to 30 million more passengers a year - it's clearly going to be an architectural triumph.

Last month the Secretary of State officially opened another spectacular piece of architecture - the new Pier 6 bridge at Gatwick. A key part of the north terminal development, it supports initiatives to protect air quality by enabling passengers to get to their aircraft without having to leave the terminal building, therefore saving 50,000 coach journeys per year.

We've also seen the opening of Robin Hood Airport - the UK's first purpose-built international airport to open in 20 years. This was a much needed local airport for the Yorkshire, Humber and surrounding regions.

South East runways

Although 20 regional airports can claim to handle over a million passengers, the majority of journeys are still via the three main south east airports. And the White Paper supports a second runway at Stansted as a first priority.

Recently, BAA (British Airports Authority) announced a one-year delay to the delivery of the second runway at Stansted. However, BAA has committed to bringing a planning application forward for as soon as possible.

This delay doesn't in any way change the White Paper position of Stansted being the location of the first new runway for the South East.

Only if strict environmental conditions can be met will this runway be followed by an additional one at Heathrow.

If the conditions attached to a new Heathrow runway can't be met, then land for expansion should be safeguarded at Gatwick.

Masterplans

BAA has indicated that it intends to publish its interim masterplan for Stansted in mid-July. And it's already consulting on interim master plans for Heathrow and Gatwick.

Since we published guidance on the preparation of airport masterplans last year, 22 airports have produced high-level statements of intent or interim master plans. We're expecting more shortly.

Airports are being encouraged to produce masterplans because they're such an essential part of the development process.

They explain development plans to regional and local planning bodies, as well as stakeholders. And local residents likely to be affected by any future airport expansion can become better informed about how the airport might grow.

Heathrow: masterplan and sustainability

Inevitably, the publication of Heathrow's masterplan attracted a lot of attention. Not least because of the potential impact a third runway could have on the local community.

We cannot ignore Heathrow's unique role within the UK. It is a major hub airport and its significance to the regional and national economy cannot be underplayed.

But we need to assess whether the strict conditions placed on air quality, noise and surface access can be met. This is now being considered by the Project for the Sustainable Development of Heathrow.

The project's work on air quality will be carried forward with the benefit of panels of independent technical experts, and we intend to subject it to peer review to ensure that the evidence base and approach is fair and independent.

We aim to announce conclusions on the prospects for further development at Heathrow in our White Paper Progress Report at the end of next year. In the meantime, we'll inform you on progress, and expect to consult widely on mixed mode proposals next spring.

In addition to this work, we've recently published the second stage of the consultation on night flying restrictions at Gatwick, Heathrow and Stansted.

To help us come to a fair and balanced decision, we want industry and, importantly, other stakeholders to respond over the next three months.

Other transport modes

Aviation's future cannot be planned in isolation from other modes of transport. Investment in supporting road and rail networks is also vital.

At Heathrow, for example, we're carrying out detailed work with the Strategic Rail Authority, Highways Agency and other key stakeholders.

Options for improving public transport access - especially rail - is as important as reducing congestion and emissions on the surrounding road network.

Encouraging sustainable growth at regional airports is also very important.

Regional route development funds

In addition to relieving congestion at over-crowded airports, especially in the South East, we want to support economic growth at region al airports. And cutting down the need to travel to and from airports is also a consideration.

The recent opening of Robin Hood Airport in Yorkshire is a case in point. Far fewer people will have to cross the Pennines to catch a flight. Now there's a burgeoning domestic and international airport right on their doorstep.

An invaluable regional development opportunity is Route Development Funds. The White Paper encourages the Regional Development Agencies and the Welsh Assembly Government to consider following the successful models in Scotland and Northern Ireland.

And towards the end of last year the North West Development Agency announced that it is to set up the first English Route Development Fund.

Other airports are likely to follow suit. And to ensure that these funds operate to a consistent set of rules, we plan to launch a protocol and appraisal framework in the autumn.

Following an extensive consultation exercise last year, we'll also be publishing policy guidance on public service obligations. We recognise the importance of regional air services and the concern of regional stakeholders about access to London airports.

Slot allocation

Expansion doesn't just mean new runways and facilities. Scarce capacity at congested airports must be used more efficiently. The current slot allocation system contains fundamental weaknesses. And we would like to see a more transparent, market based approach.

This view was reflected in our response to the European Commission's consultation on slot regulation. And it has indicated that a formal proposal will be published early next year.

To influence this development, we're working closely with our colleagues in the Commission, as well as other Member States and key UK stakeholders.

Air traffic

I would like to highlight the performance of NATS (National Air Traffic Services), which is improving year on year.

Although traffic levels are increasing, delays are decreasing substantially. Much of this is attributable to the air traffic control services provided from the new state of the art centre in Swanwick.

Of course, there are still delays beyond anyone's control - like the weather. But, whatever the cause, passengers have a right to expect problems to be sorted out quickly.

European airspace

To cope with the capacity needs of the 21st century, European airspace needs to be transformed. That's why we support the Single European Sky Initiative.

This is the first step towards overhauling Europe's air traffic management system - maintaining safety while increasing capacity and driving down delays.

But while increased capacity is necessary, growth must be achieved in a sustainable way. Significant progress has been made in reducing noise and improving fuel efficiency - but we must continue to do more.

A White Paper commitment was to press for the inclusion of intra-EU (European Union) air services in the forthcoming EU emissions trading scheme by 2008 - or as soon as possible thereafter.

This is a priority of our forthcoming presidency of the EU. But we can't do this alone; we need your continued support if it is to become a reality.

Judgements

Most of you here today will be all too familiar with the judicial reviews we've been faced with since the publication of the White Paper in 2003.

Judgement in all three cases has now been given and the White Paper remains substantially intact.

There have been two subsequent appeals related to Heathrow and Stansted. The Stansted appeal has since been withdrawn. And we're now awaiting the Court of Appeal's decision on whether the Heathrow case will be heard.

But effectively, the judgement means the Government's support for two new runways in the South East has been upheld. And we're continuing to move forward with the White Paper.

White Paper progress

A progress report on the White Paper will be made at the end of 2006. This will take stock of the achievements so far as well as look ahead to future milestones.

We'll be seeking your views on this report. In the meantime, we'll continue to work closely with the industry to deliver the objectives of the White Paper.

Conclusion

I am in no doubt that the right strategy is in place. But I'm also in no doubt that it will take continued political commitment to see it through.

And it will need the commitment of you - whether you're an airport operator, manufacturer or airline.

A tremendous amount has already been achieved over the past 18 months. And I, for one, am confident about the future of the industry.

I'm also confident that by working together we'll successfully deliver what is needed to ensure Britain retains its premier position in world aviation.

Delivered: 28 June 2005

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)