§ Motion made, and Question proposed, That this House do now adjourn.—[Mrs. McGuire.]
10.18 pm§ Mr. John Smith (Vale of Glamorgan)I am grateful for the opportunity to address the House in the Adjournment debate, as it allows me to raise an important issue—the crucial role that Cardiff international airport in my constituency plays in the development of the Welsh economy. I am delighted to see that so many hon. Members have found time to stay behind and listen to the debate at such a late hour.
I welcome the opportunity because of the timing. It is my belief, and the view of the overwhelming majority of the business community throughout Wales—not just in my constituency and not just in south Wales—that the future development of our only international airport is vital to the future economic success of our country.
However, a number of decisions taken recently cause me concern. One is the decision to shelve the construction of phase 1 of the airport link road, which was taken by the National Assembly for Wales a couple of months ago, on good grounds. I understand the reasons why the decision was made. The road was considered to be extremely expensive but, sadly, there are no obvious alternatives to the provision of that road.
I also believe that the timing of the debate is important and helpful because of the European Commission's recent rejection of the Government's concerted efforts to get Wales's only international airport on the assisted areas map for Wales. They were unfortunately rejected because of the European Commission's guidelines and rules.
I fear that the enthusiasm for the growth and development of Wales's only international airport, its key role in the Welsh economy and, more important, ensuring the right infrastructure to serve it and thus facilitate growth, is waning. I hope that I am wrong. The most important reason for the debate is to get that airport, and road access to it, firmly back on the political agenda, especially in the light of recent decisions.
My main reason for choosing Cardiff international airport as the subject of the debate is not the benefits that a positive decision would bring to my constituency, although it would benefit considerably; my prime motive is the benefits that the airport could bring to the whole of Wales. Together with objective 1 funding, such a decision would help us to bring Wales back on a par with the United Kingdom for wealth creation per head of population. In 20 years of Tory Government, gross domestic product per head sadly declined to 83.1 per cent. of the United Kingdom average. The gap continues to widen. All our energies must now focus on closing it.
The airport is important because I am not convinced that we can achieve our objective even with objective 1 funding, which is vital for the valleys and mid and west Wales, unless we get our act together on the airport. There are several reasons for that. No region in the European Union has succeeded in regenerating its economy—even with European structural funds—without a first-class, viable international airport, which provides regular, scheduled business flights. Stuttgart airport in Baden-Wurttemberg is a major facilitator for business in that 122 region. Barcelona airport plays a crucial role in the success of Catalonia. It received a heavy injection of funding because of the Olympic games.
Let us look a little closer to home and consider the fastest-growing economy in Europe, which is that of the Irish Republic. It has a population of between 3.7 million and 4 million; it has three major international airports, which cater for 16 million passengers a year. In Wales, our population is roughly three quarters that of the Irish Republic—between 2.7 million and 2.9 million—yet our international airport handles only 1.3 million passengers a year. We will not be taken seriously as a region if we do not develop a first-class regional airport which provides international flights, especially for our business community.
My view, which, I believe, is shared by business throughout Wales—if not by decision makers of all political persuasions—is that air travel is the most important mode of business transport. It is at the cutting edge of business communications. If sophisticated air travel is not available to the business community, the right investment decisions will not be made in the interests of Wales.
Key decisions, especially on overseeing major projects or the expansion of existing investment, may not be taken simply because those at the top of business organisations cannot fly to the region to observe projects and the investment location. A lot of people outside the business community do not understand that such a facility is crucial to business decision making. Nor do they realise—because of the advent of the internet, the telephone, video conferencing and all the rest of it—the importance of interpersonal contact and of decision makers being able to visit a site before recommending whether an investment should be made. Wales lost out on investment because it did not have such a facility.
Time is money in business and the business community has told me that, if people cannot get to a location to assess the value of an investment, the chances are that the key decision makers will go elsewhere. Wales cannot allow that barrier to remain if we are to succeed over the next six or seven years in our endeavour to regenerate the Welsh economy. The role of business will be crucial and, in the foreseeable future and over the period in which European structural funds will come to Wales, air travel will become more important to business communication in a global economy.
All the expectations are for large-scale growth in European air travel in general and exceptional growth in business travel across Europe. Air travel is the cutting edge of business communication in the United States, which is the most developed single market in the world. Walk on/walk off intra-continental business flights, which are increasingly becoming a feature of successful business, are available throughout the United States and, increasingly, in Canada and Mexico, which are part of the North American Free Trade Area.
As the European Union continues to develop as a single market—Wales has a closer trading relationship and depends more on trade with Europe than does any other part of the United Kingdom—what will become domestic flights within the single market will grow in importance. Therefore, it is vital that we get the airport's development right. However, let me make it clear to the House that Cardiff international airport is one of the most modern 123 in the country and, although it handles only 1.3 million passengers a year, it has the capacity for more than 4 million.
Those who have the privilege of visiting the airport will discover that it has a fast-track terminal facility, modern baggage-handling facilities, walk-on gangways that go straight to the aircraft, modern shops and restaurants—it is first class. I should not mention other areas, but I will on this occasion: Bristol does not get a look-in. It also has one of the most advanced air traffic control systems in the United Kingdom. Although it handles civilian aircraft—mainly charter planes, a limited number of scheduled flights and an even more limited number of business flights—it also deals with the considerable number of military aircraft at RAF St. Athan and en route transatlantic flights over Wales.
A sophisticated modern facility could provide huge benefits for the area. There is a 100 acre business development site adjacent to Cardiff airport and, in a three mile radius, there is a 200 acre development site at the port of Barry, which my hon. Friend the Minister visited only recently. He recognised the huge potential for growth there. A 240 acre site at Rhoose point is also in striking distance. In short, Cardiff international airport's development potential is greater than that which existed at Shannon, which is one of the best examples of using an airport to drive forward investment and an enterprise zone, on the west coast of Ireland. We have seen how successful the Irish have been. Ireland is now the largest software exporter in the world apart from the United States, and part of that is due to the development and enhancement of its business communications.
What, then, is the problem with the development of Cardiff airport? It is a very simple problem: how on earth are we to get between 3 million and 4 million extra passengers—for that is the number that we need if we are to have a successful airport—along the road that services it? First, they will have to negotiate the nightmare of the Culverhouse Cross junction, which is gridlocked between 8 am and 10 am and between 4 pm and 6 pm every day. That puts a stranglehold not only on the development of the airport, but on the western part of the capital city: commuter traffic is now so snarled up that it has become a local joke.
A single carriageway, the A4050, is interspersed with roundabouts throughout its length. It can only be described as the sort of road that one might expect to see when approaching an international airport in a third-world country: that is how small it is, given the job that it is expected to do. Those 3 million or 4 million extra passengers will be competing with industrial traffic going to Barry docks, and with holiday traffic going to Barry island and the beautiful Vale of Glamorgan; they will also be competing with the commuter traffic that becomes snarled up daily at Culverhouse Cross.
The Civil Aviation Authority tells us that the catchment area for the airport has the potential to contain 5 million air passengers. I have already said that the airport handles 1.3 million, and could handle more than 4 million. We are talking about achievable targets, but to ensure that they are met we must provide appropriate access.
I am confident that, in the next two years, the Vale of Glamorgan railway line will be reopened as a result of the Government's excellent work. That will provide a station 124 within half or three quarters of a mile of the airport, which is welcome but should be seen in perspective: the station will cater for, at the best estimate, only 5 or 6 per cent. of airport traffic, or passenger access. The road is crucial; it is vital to the future development of Wales.
It would be a tragedy if we did not do all that is humanly possible to ensure that Wales can exploit its additional funds to use this unique opportunity to rebuild its economy and return it to what it was some 20 or 25 years ago, when people were highly skilled and highly paid and Wales had a high percentage of the UK's average gross domestic product per capita. Twenty years of Tory rule saw us become a low-wage, low-skill economy with 83.1 per cent. of GDP. We must put that right—that is the challenge that we all face—and I think that we can put it right.
Wales has enormous potential for economic development. The M4 corridor in the south is probably the most attractive investment location in the European Union. It is highly competitive, it has direct access to the core consumer markets in Europe for products and services, and it provides a high quality of life. The A55 corridor provides a splendid environment for commercial and service sector industries, and also provides access to a good airport: I will not name it, but we all know which it is. However, the same does not apply to the other three quarters of Wales and Welsh business.
In central Wales and the valleys, we have enormous potential in terms of human capital. We have an enterprise culture. We have talents and skills. We can use objective 1 money to invest in and to exploit those, and to ensure that we get all the benefits out of the strategic advantages that Wales has, but the development of the airport is crucial. There is a direct correlation between the growth of the airport, the growth of business travel in Wales and the success of the economy, so I call on my hon. Friend the Minister to bear that in mind and to do whatever he can.
I realise that the issue affects every level of government—not just the House, the National Assembly for Wales or the local authority, which has a big responsibility in the matter—but we must as a matter of urgency find an alternative access to that airport. If one has been rejected on cost grounds, and it was a bit of a belt-and-braces project, we must find an alternative and we must find it together quickly. We must have an open mind on the matter. We must consider joint ventures, partnerships with the private sector or whatever. As a nation, we must find a mechanism for providing that vital link to the airport, which will provide a vital engine of growth for the Welsh economy. I am sure that we can do that and I look forward to my hon. Friend remarks with anticipation.
§ The Parliamentary Under-Secretary of State for Wales (Mr. David Hanson)I thank my hon. Friend the Member for Vale of Glamorgan (Mr. Smith) for the excellent way in which he has championed Cardiff airport. He enthusiastically set out a strong case for the success of the airport, showing in great detail the way in which the Government, the National Assembly, the local authority and all the agencies that are concerned about the future of the airport and, indeed, the future economic prosperity of the Vale of Glamorgan, Cardiff and south Wales generally, can benefit from the airport's success.
125 I am particularly pleased to see such a good turnout for an Adjournment debate. I pay tribute to my hon. Friends the Members for Clwyd, West (Mr. Thomas), for Preseli Pembrokeshire (Mrs. Lawrence), for Cardiff, North (Ms Morgan) and, indeed, for Islwyn (Mr. Touhig) for attending the debate. I am also pleased to see the right hon. Member for Caernarfon (Mr. Wigley) and the hon. Member for Brecon and Radnorshire (Mr. Livsey) showing cross-party support. We briefly had a representative of the other main party in the House with us, but we certainly have all parties representing Wales in the Chamber. It is particularly important that we have such an interesting and lively turnout of Members to help with the debate.
I am particularly grateful to my hon. Friend the Member for Vale of Glamorgan for drawing the House's attention to the importance of Cardiff international airport. As he has said, it is a valuable asset which adds greatly to the economic attractions of south Wales. He emphasised business, the links with business and maximising the opportunities of, for example, objective 1 status, which are important issues.
There is no doubt that, with modern terminal buildings and the aircraft facilities that it has, Cardiff is one of the fastest growing regional airports in Britain. We should celebrate that fact. The airport already has scheduled services to Aberdeen, Amsterdam, Belfast, Brussels, Dublin, Edinburgh, Glasgow, Guernsey, Jersey, the Isle of Man and Paris, highlighting and illustrating the great European context of Cardiff airport, which my hon. Friend mentioned.
The success is shown by the fact that the owner of Cardiff airport, TBI, was recently able to announce that 1999 had been a record year for the airport, with more than 1.3 million passengers using it, representing an increase of more than 6 per cent. on the previous 12 months. The new departure lounges and the arrivals hall mean that it now has the capacity to handle up to 2.5 million passengers per year. I was pleased to hear my hon. Friend mention a higher figure of, potentially, up to 4 million. I am sure that TBI is looking for further year-on-year growth.
Cardiff airport houses one of the most modern aircraft maintenance facilities in Europe, providing more than 700 good-quality jobs, together with related training opportunities. However, I recognise that the airport has untapped potential, as my hon. Friend has said; he has emphasised that. It is fair to say that far too many people from within its catchment area have to travel further afield to find the air services that they require. Additionally, there is a considerable way to go in encouraging the growth of air travel between north and south Wales. I recognise that fact particularly as an hon. Member representing a north Wales constituency but speaking about an airport in Cardiff.
As my hon. Friend will be aware, the Welsh regional air services study was commissioned in July 1998 by the then Welsh Office and the Department of the Environment, Transport and the Regions. Work will shortly be completed on the study, and I hope that the report will provide us with a clearer view on the role of airports in the Welsh economy.
The study has not yet been published, but it was done on the basis of a remit from the former Welsh Office and DETR to examine the very point that my hon. Friend dealt 126 with in his speech—the links between air services and economic growth—and to explore the scope for developing new services and airport facilities, including the potential for north-south Wales links. Both the Government and the Assembly will now have to examine the conclusions—which we shall do shortly—that the consultants have reached. We hope to be able to develop future policy on airports and air travel on the basis of the report. Cardiff, as the major airport in Wales, will clearly figure highly in our considerations.
One of the key points that my hon. Friend made in his speech was on access to the airport. The Government have made it clear that the development of sustainable integrated transport facilities is one of our major policy objectives. Examining the relationships between air and surface travel must form a key part of achieving that objective.
As my hon. Friend said, the main access roads to the airport are the responsibility of various bodies, but principally of Vale of Glamorgan council. As my right hon. Friend the Secretary of State for Wales has previously told the House in reply to questions from my hon. Friend, the council has already allocated significant sums for design and preparation work for phase 1, between Culverhouse Cross and the Barry dock link road. However, I understand that, in the short to medium term, the scheme has been identified as too expensive to accommodate in the transport grant programme.
Although I recognise the potential benefit to the airport of undertaking the project, the assessment of relative priorities is wholly a matter for the National Assembly for Wales to make, in consultation with local authorities and other interested parties. In considering the matter further, they will be able to take account of the outcome of the new study which I mentioned into the congestion problems at Culverhouse Cross. On 9 February, Peter Law, the Assembly Secretary, announced that the Assembly would commission that joint study—with Cardiff council and Vale of Glamorgan council—on the congestion problems at Culverhouse Cross.
I understand that the owners of the airport—for reasons mentioned by my hon. Friend—also are anxious to improve access and have a proposed solution of their own. If they wish to proceed with the matter as a joint venture, they will need to develop a detailed business case for further consideration by the Assembly and the council. I therefore hope that, given the difficulties of which my hon. Friend is aware, there is the possibility of further developments on another access road.
There are other possibilities for improving access. As my hon. Friend mentioned, reopening the Vale of Glamorgan railway line to passenger traffic could provide an additional access route to the airport—using a shuttle bus service between a new station, at Rhoose, and the airport terminal. Both Vale of Glamorgan council and Bridgend council are currently supporting design work on such a proposal as part of their development of a wider integrated transport proposal.
I can certainly see the potential advantages that such a scheme would offer. However, in the first instance—I hope that my hon. Friend will accept this in the spirit in which it is said—it will be for the two councils to judge the priority that they accord to the scheme when submitting to the National Assembly their bids for a transport grant. I hope that positive action on that matter will be considered to help improve access to the airport.
127 My hon. Friend mentioned the matter of assisted area status in Vale of Glamorgan. I realise that there are certainly concerns about the omission of Barry and certain other areas from the new assisted areas map. However, I should like to pay tribute to his efforts on behalf of Barry and the whole of his constituency to try to secure assisted area status for the areas adjacent to the airport.
I assure my hon. Friend that my right hon. Friends the Secretaries of State for Wales and for Trade and Industry are conscious of the points that he has made this evening and on other occasions about the importance of the local economy. It has been very difficult to include the areas that he wants in the assisted areas map because, as he knows, the European Commission requirements meant that we had to reduce the map considerably. Those requirements take account of a range of factors, including population and employment statistics. We have to take objective and rational decisions on where to draw the boundaries. My right hon. Friends have been keen to secure the best possible deal for Wales.
Barry and the airport are currently excluded. Today is the closing date for consultation on the proposed map. I take the points that my hon. Friend has made as further representations. Any proposals for amendments will be examined thoroughly by my right hon. Friends before the map is finalised. For complex technical reasons, we have not yet found a way to include Barry and the airport in the map on the criteria set down by the Commission.
My hon. Friend has made valuable points about the need to maximise objective 1 and employment opportunities for the airport. Employment and the 128 economy of Barry are linked directly to the success of the airport in many ways. I do not underestimate the advantages that assisted area status and development at the airport can bring to Barry. Next week my right hon. Friend the Secretary of State will have the pleasure of opening the major extension to the Dow Corning factory in Barry, which provides 200 new jobs for the area and demonstrates the continued commitment of major international employers to the vale of Glamorgan. The redevelopment of the old town hall site will begin shortly, greatly enhancing the appearance of central Barry, as well as providing new shops and other commercial outlets, while industrial units in the area continue to enjoy high occupancy rates.
As my hon. Friend will be aware, the new waterfront residential development also promises significant benefits. I was pleased to take up his offer of an invitation to visit recently, when I saw at first hand the success of the waterfront area and the potential that it has for Barry and south Wales as a whole, when linked to the success of the airport. With or without assisted area status, it is important to build on those assets in promoting the attractions of the vale of Glamorgan and the Cardiff area for economic development. I have no doubt that encouraging greater use of Cardiff international airport can play a major role in achieving that. I pay tribute to the representations that my hon. Friend has made—
§ The motion having been made after Ten o'clock, and the debate having continued for half an hour, MR. DEPUTY SPEAKER adjourned the House without Question put, pursuant to the Standing Order.
§ Adjourned at twelve minutes to Eleven o'clock.