Regional Airports (Hansard, 26 July 1993)

§ 6. Mr. Bates
To ask the Secretary of State for Transport what plans his Department has to strengthen and develop the role of regional airports.

§ Mr. MacGregor
The Government are keen to see regional airports meeting all the demand that they can attract. We also wish to encourage much greater involvement of the private sector, including privatisation of local authority airports.

§ Mr. Bates
I am grateful to my right hon. Friend for that answer. Is he aware that many local regional airports such as Teesside remain unable to take full advantage of the new opportunities in freedom of air traffic movement, in particular around Europe, because they are shackled to local authorities, which lack the imagination and expertise to compete in a sophisticated market? Therefore, willl he give serious and urgent consideration to introducing measures to entice or compel local authorities to release those airports into the private sector, where they belong?

§ Mr. MacGregor
My hon. Friend is right on several counts. There are certainly big opportunities in Europe, not least with the third aviation package, the opening of the skies in Europe and the removal of so many controls. He is also right to say that regional airports have a big opportunity and to suggest that that is best seized in the private sector, as the British Airports Authority has done.
I have been trying to encourage local authority airports to go in that direction, partly by the fact that, given all the other priorities for public expenditure, I have cut the amount of public expenditure available, knowing very well that the private sector can find the funds. This year, through the 100 per cent. capital receipts, we have also given encouragement for local authority airports to seize the opportunity.

§ Mr. Snape
Is the Secretary of State aware of the newly announced twinning of Birmingham and Chicago? What support and encouragement can he offer to establish direct air services between those two cities?

§ Mr. MacGregor
I am keen to do so and, in the discussions that I am having with the Secretary for Transport in the United States, on which I have embarked and which I will be pursuing further in September, I am seeking further liberalisation of routes from the United States to regional European United Kingdom airports. Indeed, I recently made an interim offer, which he was not able to accept but which involved further opportunities for regional airports. I shall have that in mind in the negotiations in which we are now involved.

§ Mr. Hawkins
Will my right hon. Friend join me in welcoming the further expansion of small regional airports, such as Blackpool in my constituency, and in particular the fact that a number of extra air services have started this year, including a direct flight three times a week to and from Stansted and a third airline using Blackpool as the airport of entry from the Irish Republic?

§ Mr. MacGregor
Yes, I welcome the development of regional airports and we believe that airport development is something for the airport operators themselves. I am pleased to hear of the progress that Blackpool is making.

§ Mr. Bennett
Will the Minister accept that, if it had been left to the private sector, for Manchester airport there would be nothing there? That is a good example of the foresight of the Manchester city fathers and other local authorities, which have developed one of the best international airports in the country. Is it not grossly unfair for the Government to be robbing them of that asset just as the airport is proving to be such as success?

§ Mr. MacGregor
There is no question of robbing. I hope that the hon. Gentleman will acknowledge that there has been massive Government investment in Manchester airport. The significant point now is that regional airports can, in the same way as London airport, raise their funds from the private sector because they are regarded as successful businesses. I hope that the hon. Gentleman has noted that BAA, since privatisation, has put in a great deal more capital investment than was possible when it was in the public sector.

§ Mr. Steen
Will the Secretary of State consider ring-fencing the flights from Heathrow to Plymouth? As he knows, the west country depends on the link between Heathrow, Plymouth and Newquay, so he would be doing it a great service if he would do something to protect the route. British Airways has taken it over, and nobody is certain that it will not give up the slot and use it for a more lucrative route.

§ Mr. MacGregor
As my hon. Friend knows, I fully appreciate the importance of air services to the south-west, but we have discussed the difficulties of ring fencing particular slots. In that regard, I see British Airways acquisition of Brymon Airways as a reassuring development. I am pleased to note that British Airways has stated that it recognises the importance that the people of Devon and Cornwall place on their air link with Heathrow and looks forward to improving its communications with its international network there.