European Air Traffic Services (Hansard, 18 July 2000)

§ The Minister of State, Department of the Environment, Transport and the Regions (Lord Macdonald of Tradeston)
My Lords, the scope of the High Level Group of civil and military officials from EU states is to study the main causes for the growing delays in skies over Europe and how they might be overcome. Its interim findings point towards the need for air traffic services to be more responsive to the needs of customers, less constrained by governments and to work within the framework of strong, independent planning and regulation to make the best use of the air space. The high level group is expected to present its proposals by the end of 2000.

§ Lord Pearson of Rannoch
My Lords—

Noble Lords
No!

§ Lord Lea of Crondall
My Lords, I thank my noble friend for that reply. Air traffic delays are a growing problem which can only be resolved on a European basis. But two questions arise. First, we in this country are clearly now forcing the pace on a commercial basis. How does that tie in with the intergovernmental and regulatory agenda of the high level group? Secondly, rationalising the number of air traffic control centres in Europe down to single figures will sound like job losses to a number of people. If that is so, does my noble friend agree that social dialogue is very important in looking at that matter both at national and European level?

§ Lord Macdonald of Tradeston
My Lords, the Commission wants a single sky initiative following serious aviation delays last year. The high level group is concentrating its efforts on improved performance through co-ordination of the existing, somewhat fragmented systems across Europe. The inefficiency is caused by the large number of control centres, largely dictated by land frontiers. It seems inevitable that we must move towards consolidating air traffic services in Europe through a process of gradual rationalisation. That will take many years to complete but there are signs that it is under way. It will provide opportunities to bring commercial expertise and resources while safeguarding safety and the public interest. The rapid growth in air travel and related developments are likely to produce in Europe opportunities for a powerful British-based NATS company. The prospect is clearly unsettling for staff and it is desirable for management to involve staff as frequently as possible in the process of change. The high level group has been in dialogue with European controllers and its 771 proposals reflect their concerns. The controllers are very much part of the solution and our skies will be better managed with their co-operation.

§ Lord Pearson of Rannoch
My Lords, I apologise to the House and the noble Lord for my earlier intervention.
Can the Minister tell the House whether the single European sky will cover NATO aircraft in British airspace and in British bases? If so, do the Government believe that our US allies will be entirely happy if their aircraft are thus subject to the brilliant strategists in Brussels?

§ Lord Macdonald of Tradeston
My Lords, NATS and the Ministry of Defence have always enjoyed a good working relationship at managerial and operational levels. They provide a joint and integrated service to the aviation industry. That will continue post-PPP. The Ministry of Defence relationship works well as both organisations are at present in the public sector. However, when the PPP is in place it is important that NATS and the MoD have a proper contractual relationship. They are currently negotiating a contract, which should be concluded in the next few weeks, and I am sure it will take account of the issues the noble Lord raises.

§ Lord Clarke of Hampstead
My Lords, is my noble friend satisfied with the number and quality of expressions of interest that have been shown from potential strategic partners in the NATS PPP?

§ Lord Macdonald of Tradeston
My Lords, we are pleased with the quality and level of response and the expressions of interest from potential strategic partners for the NATS PPP. We will have to evaluate those further and decide which might be taken forward in the process. We do not want to release the names of those involved, for reasons of confidentiality, though some have already declared. We should finish the evaluation exercise and hope to be in a position to pre-qualify bidders in a matter of weeks. We intend to complete the PPP—after bidders put in their preliminary offers in September—by the end of March 2001. Those noble Lords who were up until 2.30 this morning will know that the progress of the Transport Bill through your Lordships' House should support us in that aim.

§ Lord Brabazon of Tara
My Lords, does the Minister agree that one of the principal causes of delay in European skies is the fact that some countries—notably France—still prohibit civil aircraft over vast swathes of their airspace? What representations are the Government making to those countries to ask them to minimise the areas involved?

§ Lord Macdonald of Tradeston
My Lords, as I said, this will be a gradual process. We are in discussions with our French counterparts on this issue, as on many others in the field of transport. The exercise in which we are engaged is an attempt to try to rationalise both 772 commercial and military use of the skies. There have certainly been delays in Europe in countries such as France. The delays in the European countries are running at twice the level of those in the UK. We obviously had a set-back with the problems we experienced in June, but in general over the past few years our air traffic services have had only half the delays experienced by mainland Europe.

§ Baroness Thomas of Walliswood
My Lords, can the Minister clarify some of the stories in the press recently about a major breakdown in the contracting process for new equipment for NATS? Can he tell us what effect that will have on the need to modernise our part of the European airspace traffic control system?

§ Lord Macdonald of Tradeston
My Lords, one of the reasons we want to take forward the PPP solution for air traffic services is to involve expertise from other quarters, particularly from the private sector. We have had experiences which are regrettable in the development of the Swanwick centre, which is some six years delayed and very much over budget. We had delays in the new Scottish centre at Prestwick. Again, that involved difficulties with budgets and with project management. And the most recent example of the problem we had with the development of a computer system in Scotland underscores the need to try to bring in a new way of making things happen more quickly in the air traffic services area. The NAT'S management is now very much behind the initiative. We look forward to a solution to the problem that was identified in Scotland in good time for it to meet the requirements of the system for which it is being designed.