5. Urgent Question: Heathrow

– in the Senedd on 1 November 2016.

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(Translated)

[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

Photo of Elin Jones Elin Jones Plaid Cymru 3:40, 1 November 2016

(Translated)

I call on Simon Thomas to ask the third urgent question.

Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru 1 November 2016

(Translated)

Will the First Minister make a statement on the Welsh Government’s support for a third runway at Heathrow? EAQ(5)0059(EI)

Photo of Ken Skates Ken Skates Labour 3:40, 1 November 2016

We welcome the decision to build a third runway at Heathrow, which will benefit Welsh passengers, bring tourists to Wales, help our exporters reach new markets and create jobs.

Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru 3:41, 1 November 2016

(Translated)

Thank you for that statement. It would have been good to have a statement rather than hearing through the press about something that is so important, both economically and environmentally. But I’ll put the environmental questions to one side in terms of climate change and a third runway at Heathrow, and the placing of that at Heathrow rather than somewhere else, and turn to what exactly this Welsh Government has negotiated with Heathrow and the Westminster Government that will benefit Wales.

I will turn to the memorandum that’s been discussed between Heathrow and the Scottish Government, which talks, among other things, about up to 16,000 new jobs in Scotland because of Heathrow, £200 million of capital expenditure in Scotland in terms of planning and construction, £10 million for the development of new air routes internally within the UK and a reduction of £10 per capita for the landing fees between Scottish airports and Heathrow. These all look like a valuable package for the Scottish Government, which, I’m sure, justifies the Scottish Government’s support for a third runway at Heathrow.

So, what exactly has the Welsh Government got for their support? Given that the Government’s failed even to ensure the devolution of APD to us here in Wales, how will this development benefit passengers from Wales?

Photo of Ken Skates Ken Skates Labour 3:42, 1 November 2016

In terms of the expansion of Heathrow Airport, it could bring more than £6 billion to the Welsh economy and help create more than 8,000 jobs, so it’s a major piece of infrastructure that will benefit our country. I do recognise that Scotland have an MOU in place with Heathrow Airport. My officials are discussing a memorandum of understanding with Heathrow, but it will be different to that which Scotland has been able to agree. Many of the points within the MOU that Scotland has are actually within the gift of the Scottish Government and can be delivered regardless of whether a memorandum of understanding exists at all. For example, on the marketing strategy that is talked about in the memorandum of understanding, we’ve already done that as a Welsh Government.

As a consequence of us doing that—. I’m sure that the Member, representing an area of Wales that is very rural and that relies on the visitor economy, would welcome the fact that we’ve got more tourists coming to Wales than ever before, and that north Wales was, last week, declared the fourth best place on the planet to visit. [Interruption.] Absolutely. That is because we have been investing for many, many years in the right areas and in the right products to drive up tourism. We didn’t need an MOU to designate north Wales as the fourth greatest place on the planet.

In terms of the agreements that we are looking for, we wish to ensure that there is a proportionate memorandum of understanding for Wales. But, we are also negotiating very much with the UK Government, because many of the benefits that will stem from Heathrow Airport expanding to three runways actually stem from Westminster. So, we’re looking for assurance that the western rail link to Heathrow will be delivered; we’re looking for assurance that the north Wales main line will be upgraded appropriately, and that there will be proper connectivity into HS2; we are looking for the abolition of the Severn tolls; and, of course, we are also looking for air passenger duty to be devolved. All of these essential issues are within the gift not of Heathrow Airport, but the UK Government.

So, just having a memorandum of understanding with the airport, in my view, is insufficient. We also need agreement from the UK Government. Insofar as work is concerned with the UK Government, of course, we’ve heard from the Secretary of State for Wales, and I very much welcome his words, that Heathrow’s third runway will bring many great benefits to Wales. I also hope that the Secretary of State will continue working with me to deliver some of the infrastructure improvements that we need to see brought to Wales as a result of the need to make Wales a more connected and united country. So, I’m confident that, in terms of the benefits that Heathrow can bring, we will have an understanding, the memorandum of understanding, with Heathrow that is at least proportionate to that which Scotland has, but in addition to agreements that we are seeking through UK Government.

Photo of Andrew RT Davies Andrew RT Davies Conservative 3:45, 1 November 2016

I, too, warmly welcome the announcement on the Heathrow expansion. I had the good fortune to be up at Heathrow Airport and was shown the potential for Wales, and have liaised very closely with them over the last two years to offer any assistance that I’ve been able to to make sure that this project does happen. What I’m bitterly, bitterly disappointed to hear today is the inability of the Welsh Government to secure anything for their support for the Heathrow expansion. There’s not much point trying to catch the horse after it has bolted out of the stable, Minister, and frankly there’s the Heathrow spur, and a contribution to that from Heathrow Airport would have been very, very welcome indeed, such as with the contributions that they’ve listed already to transport arrangements in the south-east and also slots and the availability of slots on Heathrow’s valuable tarmac for planes coming down from Scotland, as was highlighted in the earlier question that was put to you.

Can you not point to a single commitment that you have secured from Heathrow, or the owners of Heathrow, in relation to your support or your Government’s support for this project? I listened very carefully, and we’d all support the projects that you talked about, but actually what we want to see are a lot of those projects coming to reality. So, can you not point to a single piece of paper, a single memorandum of understanding in any shape or form, of some agreement, either financially or in goods and services, that has been offered to you by Heathrow for the Welsh Government’s support for the expansion of runway capacity in the south-east of England?

Photo of Ken Skates Ken Skates Labour 3:47, 1 November 2016

Well, I’m pretty surprised by the Member’s attitude on this issue, given that he could surely have been saying more regarding the big infrastructure projects that I outlined in my answer to Simon Thomas, especially concerning the western rail link to Heathrow, which should be delivered, which I would hope he would call on the UK Government to deliver, including the electrification of the north Wales main line, which I would hope he would call on the UK Government to deliver, including abolition of the Severn tolls over the River Severn. Again, all of these important points are within the control of the UK Government, so I would hope that he would actually criticise those who are responsible for failing to deliver the goods for Wales.

In terms of Heathrow Airport, as I said to Simon Thomas, we’ve already been conducting a major marketing exercise, which the Scottish now seem to be wishing to embark on. We’ve already been conducting that and, as a result of that, we’ve got record numbers of tourists coming to Wales; we’ve got a record number of people now using Cardiff Airport; we’ve got a new air link between Cardiff and the City of London as well. And in terms of the other areas of the memorandum of understanding, we’ll be having supplier events as well in Wales, not just in Cardiff, but it’s my aim to make sure that we have supplier events elsewhere in Wales. So, in terms of the memorandum of understanding, as I said, I aim to ensure that it is proportionate to that which Scotland has, and, on 22 November, my officials will be meeting again with Heathrow to discuss the basis of that memorandum.

Photo of David Rowlands David Rowlands UKIP 3:48, 1 November 2016

Yet again, I have to, Cabinet Secretary, express my surprise that this Government and many of those in this Chamber are supporting a south-east-England-centric project that has no real identified benefits for the Welsh economy. Indeed, I would paraphrase the old holiday adage: what happens in the south-east stays in the south-east. Would it not have been better to have promoted the potential of regional airports? You talk about passengers and the ease of access for Welsh passengers now to fly from Heathrow, surely Cardiff Airport has the ability to take the largest of jets, and it would be much better promoting Cardiff Airport to be the place for people not only to fly from Wales but also to come into Wales. This seems to be very strange thinking, as far as I can see, and especially, as has been pointed out, as we have no direct benefits from construction that have been agreed with the Westminster Parliament.

Photo of Ken Skates Ken Skates Labour 3:50, 1 November 2016

The Member would be right if it wasn’t for the fact that so many people from Wales actually use Heathrow Airport, and regardless of the success of Cardiff Airport, Cardiff Airport will never compete as an international hub with Heathrow. Cardiff can, however, act as a complementary airport for Heathrow, and that’s what the chair of the airport, Roger Lewis, has spoken about on a number of occasions. That’s why we’ve been investing so heavily in that airport. Let’s not forget, in this Chamber, that it was the Conservatives, and Andrew R. T. Davies, who was so critical moments ago, who wanted to close the airport. It was this Labour Government that saved the airport. It’s this Labour Government that’s made the airport an incredible success story. Let’s face facts here—[Interruption.] Let’s face facts here: if you want to look at who saved the airport, look to this front bench. It’s this Government that’s achieved the success of Cardiff Airport.