HC Deb 17 July 2000 vol 354 cc46-7W
Mr. Jenkin

To ask the Secretary of State for the Environment, Transport and the Regions (1) what assessment he has made of the safety implications of the cost reductions in the operations of National Air Traffic Services recommended by the economic regulation group of the Civil Aviation Authority; and if he will make a statement; [129760]

(2) what representations he has received from (a) the management of NATS and (b) IPMS about the cost reductions in the operations of National Air Traffic Services recommended by the economic regulation group of the Civil Aviation Authority; [129761]

(3) if he will place a copy of the paper entitled, "NATS' Response to ERG's Second Consultation Paper", dated 26 May, in the Library. [129764]

Mr. Mullin

Under the proposed public-private partnership for National Air Traffic Services, NATS' charges will be regulated using an RPI-X formula. The Economic Regulation Group of the Civil Aviation Authority has the task of advising the Secretary of State about the initial value of X. The CAA is carrying out a consultation process designed to help it prepare that advice. The consultation paper issued by ERG on 26 April, and NATS' response of 26 May, are part of that process.

The figures in the consultation paper, to which these questions refer, were preliminary and we have made no assessment of them. We expect ERG's final advice in the next few weeks. Decisions on the regulatory benchmarks, including the value of X, will be taken by Ministers. We shall consider ERG's advice carefully when we receive it before taking that decision. In doing so, we shall consider the safety implications and take account of the views of the CAA's Safety Regulation Group.

We have seen NATS' response but have received no direct representations from NATS or IPMS on the ERG paper.

I am arranging for copies of the ERG paper and the NATS response to be placed in the Library shortly.

Mr. Jenkin

To ask the Secretary of State for the Environment, Transport and the Regions what his forecast is of capital spending by NATS in the current year and each of the next five years; and what increases in capital spending are anticipated as a result of the proposed public-private partnership. [129762]

Mr. Mullin

The Government do not make forecasts for NATS' capital expenditure. NATS has recently produced its first 10-year investment plan and is currently consulting with its customers on this document. The form, timing and appropriateness of the plan will also be reviewed by the CAA. NATS' estimate is that capital expenditure over the next decade will be of the order of £1.4 billion (in current prices).

The Government believe that the Public-Private Partnership is the best way to deliver the investment needed, and will provide the additional management expertise to ensure that this capital programme is achieved on time and on budget for the benefit of NATS' customers and for the Government as shareholder.