HC Deb 11 June 1998 vol 313 c637W
Mr. Geraint Davies

To ask the Secretary of State for the Environment, Transport and the Regions if the Government have reached a decision on the future of the national air traffic services. [46057]

(Dr. Strang

We have been considering the future of the National Air Traffic Services (NATS) taking account of the views expressed in the Report by the Environment, Transport and Regional Affairs Committee on Air Traffic Control published in April.

Safety is paramount. The Select Committee raised major concerns about the current arrangements in their report. The Civil Aviation Authority is currently responsible both for the provision of air traffic control services through NATS and for regulating the safety of those services. The Government will bring forward proposals to ensure that air safety regulation will be conducted independently from NATS. We will ensure that regulation is open and transparent and that the aviation industry and its employees can play a full part. The regulator's remit will be to enforce the toughest safety standards in the world.

We have looked at a number of options for the future of NATS, including those mentioned in the Select Committee's Report.

In the planned multi-billion investments in the Channel Tunnel Rail Link and London Underground, we have demonstrated our ability to mobilise private capital to serve the public interest through public/private partnerships.

The Government believe that the level of investment and efficiency that we need in our National Air Traffic Services can best be achieved through a partnership between the public and private sectors. A partnership of this kind would help NATS to finance the investment it needs to operate effectively and would mobilise private sector resources.

Our preference is that 49 per cent. of the shares, and a golden share, are held by the Government; and 51 per cent. by private investors including employees.

This package, taken together, will guarantee the highest safety standards as air transport increases in the future. It will retain a large public stake and golden share in NATS. And it will ensure that NATS can finance its future investment effectively within a secure framework of safety and economic regulation.

The Government will consult interested parties further on the implementation of their decision in principle and will then bring forward the necessary legislation.