HC Deb 18 November 1998 vol 319 cc676-8W
Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions what consultation has taken place with the International Civil Aviation Organisation on the option of a public/private partnership for National Air Traffic Services with regard to the current NATS contract for the control of international airspace in the Eastern Atlantic; and if NATS would be allowed to operate a for profit air traffic control service for ICAO in international airspace. [59964]

Dr. Reid

A copy of the consultation paper "A public/private partnership for National Air Traffic Services Ltd. (NATS)", published on 20 October, has been sent to the Secretary General of the International Civil Aviation Organisation, and the Government will be happy to discuss any matters on which ICAO wishes to comment. The provision of air traffic control services in the Eastern Atlantic is the responsibility of the Governments of the UK and the Republic of Ireland, by virtue of an international agreement reached under the aegis of the International Civil Aviation Organisation. We believe that—as long as charges are reasonable—our international partners, and the airlines using the service, will regard the safety, reliability and quality of the service provided as more important than the status of the service provider.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions (1) how a structure of incentives and disciplines will be established to maximise efficiency in the event of a public/private partnership for National Air Traffic Services; [59961]

(2) what contingency plans he has for replacing National Air Traffic Services after the introduction of a public/private partnership in the event of failure to comply with an enforcement notice; [59960]

(3) how the Government will maintain sufficient rights and safeguards in respect of (a) national security, (b) the United Kingdom's international relationships and (c) other public interests, if the proposed public/private partnership for National Air Traffic Services goes ahead; [59956]

(4) if the Government will ensure that National Air Traffic Services plc cannot be taken over by a non-British company at a future date; [59959]

(5) what contingency plans he has made in the event of the company becoming insolvent under the option of a public/private partnership for National Air Traffic Services; with particular reference to (a) the conduct of licensed activities pending transfer to another company, (b) the transfer of an insolvent company as a going concern to ensure that the licensed activities could be carried on and (c) staff terms and conditions. [60154]

Dr. Reid

The detailed arrangements for the proposed public/private partnership for National Air Traffic Services Ltd. (NATS) have not yet been determined, and we wish to take full account of responses to the consultation paper published on 20 October 1998 by my right hon. Friend the Secretary of State for the Environment, Transport and the Regions, before reaching final decisions on the proposal. The consultation period ends on 31 January 1999.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions how much of the contracted investment has yet to be raised for the new en route centre at Swanwick. [59957]

Dr. Reid

The last of the contracts for the provision of the building and systems at the Swanwick centre were closed in April this year. Total capital expenditure on these contracts amounted to £350.1m.

The Government have commissioned consultants to look at the costs and project management of the Swanwick centre. Their report should be available in February next year.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on progress to date on replacing the Oceanic flight data processing system at Prestwick. [59963]

Dr. Reid

Discussions between NATS and the contractor, EDS Ltd., are continuing over issues which have arisen at the project definition stage of this project.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions what options other than the public/private partnership he considered in order to achieve a capital receipt to allow other transport schemes to benefit from the proceeds of changing the structure of National Air Traffic Services. [59962]

Dr. Reid

As I sought to explain to the Transport Sub-Committee of the Environment, Transport and Regional Affairs Committee, the Government's preferred option of a public/private partnership for NATS was intended to confer a range of benefits on NATS itself, its customers, and the UK more generally thereby providing an innovative solution to growing air traffic demands in the next century. The proceeds are a benefit which will fund other transport schemes but that was not the main objective in the Government's considerations.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions how the Government's preferred option of a public/private partnership for National Air Traffic Services will affect the PFI contracts for the new Scottish and Oceanic air traffic control centres. [59953]

Dr. Reid

The Government's financial advisers are currently considering the possible relationship between the proposed public/private partnership for National Air Traffic Services and the financing of the New Scottish and Oceanic centres. The Government remain committed to NATS's strategy of providing two centres at Swanwick and Prestwick to deal with air traffic flying over the UK.

Ms Osborne

To ask the Secretary of State for the Environment, Transport and the Regions for what reason the recently revised financial structure for municipally owned airports will not apply to finance for national air traffic development. [59955]

Dr. Reid

We carefully considered each case on its own merits and concluded that the degree of commercial freedom sought by NATS's management would be incompatible with public sector status. In the longer term, NATS may want to expand into European and world-wide air traffic control markets—or even into non-ATC business. The case with the municipally owned airports is somewhat different, and the commercial freedom we are offering them will be restricted to airport-related investment in the UK.