HC Deb 26 January 1999 vol 324 cc153-4W
Mr. Levitt

To ask the Secretary of State for the Environment, Transport and the Regions if he will list the changes to the operational autonomy of National Air Traffic Services which will follow its reorganisation. [66859]

Dr. Reid

Detailed decisions on the public private partnership proposals for National Air Traffic Services will not be taken until after the consultation period closes on 31 January 1999. However, our preferred option, as set out in the consultation paper, would give NATS autonomy within a new framework, policed by an independent regulator.

Mr. Levitt

To ask the Secretary of State for the Environment, Transport and the Regions what factors underlay his decision not to(a) retain National Air Traffic Services in public ownership and (b) privatise it completely. [66860]

Dr. Reid

The Government's reasons for proposing a public/private partnership for NATS, in preference to any other option, are set out in paragraphs 2–6 of the document "A public/private partnership for NATS: a consultation paper by the Secretary of State for the Environment, Transport and the Regions", copies of which were placed in the Library of the House on 20 October 1998. In essence, we believe that a public/private partnership would provide an innovative solution to growing air traffic demands in the next century, while maintaining high standards of safety and performance through strong, independent, safety and economic regulation. A partnership would alsofree NATS' investment and management decisions from Government financing constraints and enable private capital to be used in ways more appropriate to the business; provide the right structure of incentives and disciplines to maximise efficiency; provide NATS with the opportunity to develop its business, for example by expanding overseas, and manage itself in accordance with best private sector practice; clearly separate regulation from service provision so as to deliver greater accountability and transparency in NATS' operations; maintain sufficient rights and safeguards for Government to address public sector interests such as national security and the UK's international relationships; allow the taxpayer to share in the success of the company; and allow other transport schemes to benefit from the proceeds of the share sale.

The consultation period ends on 31 January 1999.

Mr. Levitt

To ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the ability of the reorganised National Air Traffic Services to guarantee necessary levels of investment. [66861]

Dr. Reid

The Government issued a consultation paper setting out our broad proposals for a public/private partnership (PPP) for National Air Traffic Services (NATS) on 20 October 1998. Decisions on the detail of the proposals will not be taken until after the consultation period closes on 31 January 1999. However, one of the main objectives of the PPP is to free NATS from public sector borrowing restrictions so that it can more easily invest for the future.

Mr. Levitt

To ask the Secretary of State for the Environment, Transport and the Regions if the Civil Aviation Pension Scheme will continue to be open to(a) existing and (b) future members of staff of National Air Traffic Services after the proposed reorganisation of the service. [66862]

Dr. Reid

The Government are currently consulting on the details of future pension arrangements for staff of National Air Traffic Services (NATS), as part of the consultation exercise on the proposed public/private partnership for NATS. The Secretary of State hopes to make a statement in due course, after responses to the consultation have been considered.