§ Mr. MeacherTo ask the Secretary of State for Transport what evidence he has collated on the effect of airport expansion on foreign direct investment. [152846]
§ Dr. Howells[holding answer 4 February 2004]: We recognise the importance of aviation to the economic prosperity of the United Kingdom. The effects of airport expansion on foreign direct investment were considered in the studies which led to the publication of our recent White Paper, 'The Future of Air Transport'.
Our work suggested that net inflows of foreign direct investment in 1999 were estimated to be almost 50 per cent. of total investment in the UK, and that the strategy set out in the White Paper—including two additional runways in the South East and expansion in the regions—would meet 95 per cent. of foreign business demand. Although our economic appraisal of airport options focused on direct benefits for airport users, 1001W enabling more foreign business travellers to fly to and from the UK will only have a positive effect on foreign direct investment.