§ Baroness BURTON of COVENTRY:My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they will make a statement on the proposed method of financing the noise insulation grant schemes for domestic dwellings around Heathrow and Gatwick Airports.
§ Lord JACQUESMy Lords, these schemes will be financed from revenue derived by the British Airports Authority from their operational activities.
§ Baroness BURTON of COVENTRYMy Lords, while hoping that I can be grateful for that Answer, does it mean that they will be financed from actual revenues of the British Airports Authority without the necessity to increase landing charges for aircraft?
§ Lord JACQUESMy Lords, this is a matter which the British Airports Authority will have to consider in fixing their landing charges as from 1st April 1979.
§ Baroness BURTON of COVENTRYMy Lords, has not the Minister really intimated that the question I asked him was correct—in other words, that the landing charges will be increased to pay for this? Furthermore, is it true that the Charges Group of IATA met with the British Airports Authority on 26th January to decide the range of such landing charges? If so, can the Minister give us the results?
§ Lord JACQUESMy Lords, I am unable to answer the latter part of the question; I have no knowledge of that. However, I can say that the landing charges will be considered in relation to this additional cost and only in so far as the costs upon airlines are reflected in fares will it fall upon passengers. There will be no separate charge.
§ Lord HARMAR-NICHOLLSMy Lords, is not the noble Lord saying that the landing charges will cover the cost? Is he not saying, with the extra words, that in point of fact the cost of insulation will result in higher landing charges? Is that the position?
§ Lord JACQUESMy Lords, that is a matter for the British Airports Authority. However, my guess would be that it would increase the landing charges. Let us try to get this matter in perspective. The cost will be spread over a number of years. If it is spread over three years, the additional cost per passenger would be 20p. I believe that the majority of people who travel by air would willingly pay an extra 20p in their fare if they thought that it would relieve the noise nuisance to those not only living near the airport but living under the flight path.
§ Lord TREFGARNEMy Lords, that is all very well, but what will be the percentage increase in landing fees to cover the cost of these schemes? Can the noble Lord also give an indication of the total cost of the schemes during their first year of operation?
§ Lord JACQUESMy Lords, I can give no indication of the increase in landing fees. That is not the Question before the House. I can say that the cost of the schemes is expected to be £19 million, but if it were spread over a minimum of three years, as is my guess, it would be £6 million for the first year.
§ Lord TREFGARNEMy Lords, if the noble Lord says that the cost is to be 20p per passenger, how can he then say that he does not know by how much the landing fees will increase?
§ Lord JACQUESMy Lords, that is quite easy because I do it by simple arithmetic. I divide £19 million by three 325 and I get approximately £6 million. I know that there are just over 30 million passengers and so I end up with just under 20p per passenger. I think that that calculation will stand the light of day.