HC Deb 02 December 1985 vol 88 cc10-1
13. Mr. Patrick Thompson

asked the Secretary of State for Transport what representations he has received for local authorities concerning his proposal that local authority airports should become Companies Act companies.

Mr. Michael Spicer

I have had discussions with representatives of a number of local authority airports and with the Joint Airports Committee of Local Authorities and Aerodrome Owners Association. Both these bodies have also been invited to submit written comments.

Mr. Thompson

I thank my hon. Friend for that reply. Does he accept that when approving future airport companies—for example, in Norwich—it is vital that they should be responsive to small businesses and business generally in the area and that they should be free from any undue political interference?

Mr. Spicer

I confirm that under our present proposals Norwich airport will become a public limited company. I also confirm what my hon. Friend said. Our objective in turning airports, such as Norwich, into public limited companies is that they should be insulated from political interference and, as far as possible, operate as commercial undertakings.

Mr. McCrindle

Is it correct that Manchester international airport would be prepared to change to a public limited company subject to the board of directors' continuing to consist entirely of Manchester city councillors? If so, will my hon. Friend confirm that that does not conform with the idea laid down by the Government?

Mr. Spicer

I confirm that Manchester city has suggested how it might turn the airport into a public limited company. I also confirm that we are dissatisfied with a number of aspects of those proposals; in particular, those which try further to link the city with the airport.

Mr. Anderson

That matter must be seen in the general context of the Government's ideological views on privatisation. Can the Minister tell us of other comparable countries where the major airports are in private hands?

Mr. Spicer

There is no question but that this is a pace-setting venture, which is one reason why so many other countries are full of admiration for what the Government are doing.

Mr. Favell

Has my hon. Friend read the comments made by his right hon. Friend the Chancellor of the Duchy of Lancaster this weekend about Manchester city council? Can we rely upon my hon. Friend to ensure that the management of Manchester international airport, the region's most important asset, never falls into the hands of Manchester city council?

Mr. Spicer

The Government have no proposals to compel the privatisation of Manchester airport, but they are determined to set up a public limited company which will operate commercially and not be subject to political interference by the city.

Mr. Snape

Does the Minister accept that the proposal currently being considered by his Department is to set up a public limited company owned jointly by the Manchester city council and the passenger transport executive, not one owned wholly by the city council? What representations have been received from airlines, airport users or passengers in Manchester complaining about the present position or the city council's proposals? Why is it necessary to deprive locally elected councillors, of any party, of a say in the future running of an airport into which public money has been ploughed over the years and which has been a credit to municipal enterprise?

Mr. Spicer

The Government's intention has been clearly set out. The local authorities have a choice as to whether they set up joint boards comprised of the districts or a passenger transport authority-based system. It is for the local authorities to decide. The Government say that that decision— which, in the case of Manchester, has been delayed—must be made quickly. If the decision is not made within the foreseeable future—that must mean by the end of this year—the Government will have to insist on a passenger transport authority-based system.

On the hon. Gentleman's general point, we are not convinced, and we suspect that some Labour-controlled authorities may not be convinced, that using taxpayers' and ratepayers' money to support and develop airports is the best way to spend that money. It is much better to allow private enterprise to do so, and a number of Socialist-controlled authorities believe that.