HC Deb 23 March 2001 vol 365 cc393-4W
Mr. Syms

To ask the Secretary of State for the Environment, Transport and the Regions what approval

was required from the Government for the recent takeover of Bournemouth and East Midlands airports by the Manchester Airport Company. [154710]

Mr. Robert Ainsworth

The purchase of the shares in the two companies required the consent of my right hon. Friend under section 30(1) of the Civil Aviation Act 1982, with which local authorities may establish and maintain airports, and under section 20(3) of the Airports Act 1986 with which they may acquire shares in airport companies which they do not already control. Manchester city council applied for consent on behalf of Manchester airport's 10 shareholder authorities, and the issuing of the consents to the city council empowered the airport company, which is a subsidiary of the city council, to purchase the shares. The consents were issued without prejudice to any regulatory approval which might be needed.

In addition my right hon. Friend the Secretary of State for Trade and Industry was required to consider whether to refer the proposed purchase to the Competition Commission under the mergers provisions of the Fair Trading Act 1973 for a full investigation. He took a decision not to do so, in accordance with the recommendation of the Director General of Fair Trading. The primary consideration in the Director General's advice, and in the decision whether to make a reference, was the likely effect of the proposed purchase on competition in the market for airport services.

Mr. Syms

To ask the Secretary of State for the Environment, Transport and the Regions what changes in the last 12 months the Government have made to the financial guidelines of Manchester airport. [154711]

Mr. Robert Ainsworth

None.

Mr. Syms

To ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the purchase of East Midlands airport and Bournemouth airport by the Manchester Airport Company. [154709]

Mr. Robert Ainsworth

The New Deal for Transport White Paper (Cmnd 3950) stated that the Government'snew air transport strategy will consider how…regions and their airports, for example in the north and midlands, might work together to realise the potential of airports away from the congested south east of England".

While the sale by National Express of their UK airports has taken place before the completion of our new air transport strategy my right hon. Friend, in considering the application for the necessary consents, noted that the proposed sale to Manchester airport was the result of competitive tendering and judged that it was likely to bring benefits of the type summarised above.