§ Sir Fergus MontgomeryTo ask the Secretary of State for Transport if he will now announce the 1991–92 supplementary credit approvals for public airport companies and local authority airports.
§ Mr. McLoughlinMy right hon. Friend the then Secretary of State noted in answer to my hon. Friend the Member for Hexham (Mr. Amos) on 26 November at column 270, that supplementary credit approvals totalling £87 million will be available for public airport companies and local authority airports for 1991–92. Taken with other resources which public airport companies expect to invest, the total will assist the airports concerned to provide facilities which they estimate could cost some £179 million in 1991–92.
At this stage, we have agreed supplementary credit approvals totalling £70 million. The remainder will be issued as the year progresses. Major projects concerned include the continuation of work on phase 1 of terminal 2 at Manchester airport and joint venture projects with the private sector at Birmingham airport. Formal supplementary credit approvals for these and other projects will be issued to the local authorities shortly.
The £87 million total of borrowing approvals for 1991–92 represents the second successive large increase, from £29 million in 1989–90 and £59 million in 1990–91. But these increases reflect the investment profile for phase 1 of Manchester airport's second terminal. Supplementary credit approvals will reduce substantially in the next two years and beyond, as that project is completed, and as the pressure on public sector spending continues.
Local authority airports need to expand to meet a growing share of the demand for air travel, but to do so they will have to look increasingly to the private sector to take a stake in the success and the risk associated with particular projects.