HC Deb 21 March 1994 vol 240 cc11-2
13. Sir Fergus Montgomery

To ask the Secretary of State for Transport if it is his policy to encourage local authorities to privatise their airports.

Mr. Norris

Yes. It is indeed our policy to encourage local authorities to privatise their airports.

Sir Fergus Montgomery

Does my hon. Friend agree that Manchester airport has been a great success story? Does he further agree that perhaps if Manchester airport were privatised, it would be an even greater success story?

Mr. Norris

I am delighted to see my hon. Friend here this afternoon and I confirm that I agreed with absolutely every word he said. There is a benefit there measured literally in hundreds of millions of pounds available to the hard-pressed charge payers in Manchester.

Mr. Pike

Does the Minister accept that the reality with Manchester airport is that the local authorities in the area have been prepared to invest in that airport over many years? There is no information, or anything else, to show that that success will not best continue in the public sector. In view of that, would not privatisation be absolute nonsense?

Mr. Norris

One has only to look at the success of the British Airports Authority to see how wrong is the hon. Gentleman. However well Manchester airport is doing in the public sector, it will do a damn sight better for all concerned in the private sector.

Mr. Matthew Banks

Does my hon. Friend agree that if Manchester airport is to continue its successful expansion, it has no place whatever in the local authority sector?

Mr. Norris

It is a general proposition that private operators are better at operating companies such as Manchester airport than local authorities, which are sensibly constituted for a different purpose. On that basis, my hon. Friend is entirely right. The great thing is that it would be very much in the interests of the people of the region not only that the airport flourishes but that the proceeds are devoted more appropriately to the many pressing needs in that area.

Mr. Gunnell

Is not it the height of hypocrisy for Tory Members, including the Prime Minister, last week to slag off Manchester city council because of its capital debt and then to take measures to get rid of one of the council's major assets, which has achieved its quality because of the superb work done in Manchester? Why do not the Government end the hypocrisy and show that they are willing to pay tribute to local authority enterprise, which has given us the positive airport in Manchester that exists there?

Mr. Norris

I shall quietly tell the hon. Gentleman later what the link is between slagging off Manchester for its large public debt and the sale of an asset that could reduce that debt. I should have thought that that was obvious to most people. Certainly, in this case, if the council were serious about running its financial affairs prudently, it would welcome and, indeed, promote the sale of Manchester airport as a valuable asset.