HC Deb 22 June 1998 vol 314 cc365-6W
Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the role of the Private Finance Initiative in funding the new Scottish centre at Prestwick in relation to the proposed public/private partnership for funding air traffic control. [46440]

Ms Glenda Jackson

[holding answer 18 June 1998]: The operational requirement of the New Scottish Centre at Prestwick remains unchanged, and the centre is an integral part of the Civil Aviation Authority's two centre strategy—which the Government have endorsed. National Air Traffic Services Ltd. are moving towards contracting with their preferred bidder for the provision of the new centre, and the Government hope that the announcement of the public/private partnership will not delay its development.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions when National Air Traffic Services will sign the contract for the new Scottish centre at Prestwick. [46443]

Ms Glenda Jackson

[holding answer 18 June 1998]: National Air Traffic Services and Sky Solutions, the preferred bidder, are now well advanced in negotiations. NATS will consult with the airlines before seeking CAA Board and Government approval to a contractual commitment.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions if he will list the number of occasions in the last(a) month and (b) six months when allegations have been made of overloads of the air traffic control system; and what has been the outcome of investigations. [46439]

Ms Glenda Jackson

[holding answer 18 June 1998]From 17 May to 17 June 1998, there have been three overloads reported at the London Area Terminal Control Centre at West Drayton. For the calendar year to 17 June, there have been 22 overloads reported at that centre. There have been none at the Manchester and Scottish and Oceanic Control Centres. The Safety Regulation Group of the Civil Aviation Authority investigates the incidents. To date, reports have been made to National Air Traffic Services Limited (NATS) on 13 of the incidents. NATS implements all relevant recommendations following such incidents.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions in relation to the proposed public/private partnership for National Air Traffic Services, what proportion of the 51 per cent. of the shares held in the private sector will be reserved for employees. [46446]

Ms Glenda Jackson

[holding answer 18 June 1998]The Government are contemplating reserving up to 10 per cent. of the shares held in the private sector for National Air Traffic Services' employees.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of alternative options for the future funding of air traffic control services; and if he will publish the arrangements for consultation on the Government's preferred option. [46442]

Ms Glenda Jackson

[holding answer 18 June 1998]The Government considered the following optionsEstablishing National Air Traffic Services Ltd as a separate public sector body: this option was not feasible without significant relaxation of Government borrowing controls, and provided no real incentive to improve efficiency or drive the business forward; Maintaining air traffic control provision as a subsidiary of the Civil Aviation Authority: this option provided no incentives for efficiency, would not separate regulation from service provision, and could not provide assurances as to the availability of funding for future investment to cater for demand; Setting up a private sector trust along the lines of the Canadian model: this option would not generate real commercial incentives or disciplines, it would be difficult to ensure adequate accountability, and difficult to ensure against the emergence of dominant interests; Establishing National Air Traffic Services Ltd as a private sector body providing air traffic control services under contract to the Civil Aviation Authority (the "privatised contractor"): this option did not effect any real separation between service provision and regulation, and there were additional concerns over a possible conflict of interest in the Civil Aviation Authority's being contract manager and regulator.

The Government intend to consult interested parties on the implementation of their decision in principle, and will publish a consultation paper shortly.

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