Sunday, 5 July 2015

'Call me Dave's' Heathrow headache

When I heard all the fuss last week about the Airport Commissions report into another runway my initial reaction was one of apathy. As a northerner, not an MP for Uxbridge or someone particularly concerned about unreasonable noise levels in my vicinity, I thought, humph well this is a very London centric story, not really worth all this air time.

My next thought, after digesting the televisions witterings further was, that if only the Airport Commission’s Report had considered the north of England for additional aviation capacity, all ‘Call me Dave’s’ problems would be solved. My final thought was, Westminster is too parochial to consider anywhere else even if it benefits politically.


The Airport Commission’s report found that, a third runway at Heathrow was the most viable option to increase aviation capacity. A new runway at Gatwick, a third runway at Heathrow and an expansion to the existing framework of Heathrow were the central considerations of the report. With members of the Tory Party that sit in rural constituencies surrounding Heathrow, lining up to take swings at ‘Call me Dave,’ one would have thought that considering the northern airports for the expansion, just considering, was just good politics however fruitless an ordeal it may have been for Sir Davies.

If the report had considered somewhere like Manchester, ‘Call me Dave’ may have less of a headache in trying to subdue fairly outspoken hard hitters like Boris and Phillip Hammond on the subject.
The report makes clear that Sir Davies findings are propelled by economics. An expansion to Heathrow would cost £17 billion of taxpayer’s money and it is reasonable that the site that would yield the largest hike in GDP would be chosen. A Third runway at Gatwick and a Heathrow expansion would be less beneficial to the nation’s wealth, a £42-127bn benefit to government if the Gatwick option is chosen as opposed to a £112-211bn benefit if ‘Call me Dave’ decides on a third runway at Heathrow.

The long term economic benefits are widely unknown. There is little concrete statistical evidence to suggest that additional capacity or connectivity would bump up overall GDP. A report commissioned by the International Air Transport Association in 2009 by  suggested, ‘studies suggest that a 10% increase in connectivity (relative to GDP) will raise the level of productivity in the economy by a little under 0.5% in the long run, with there being a fair degree of uncertainty around this average estimate.’ This said, whether the Airports Commission consider Gatwick, or Heathrow on the cost benefit side of things is irrelevant when the long term benefits are unclear.
One can assume that the benefit to the Government coffers would be less if an additional runway were added to somewhere like Manchester however, the Tory Party would have less to gripe about. With only 5 Tory MP’s in the Greater Manchester area the ‘not in my back yard opposition’ would be less vocal to say the least.

Additionally if Manchester had been shortlisted for consideration by Sir Davies’ Commission, then this may add an element of authenticity to the ‘Northern Powerhouse’ agenda in a part of the country that perceives Westminster as a force for Londoners only.

HS2 is due to finish in 2032 and should connect Manchester Airport to London Euston in 59 minutes. 59 minutes is somewhat longer than 16 minutes, which is the current journey time by rail from Heathrow into London but 59 minutes isn’t long enough in my view, to impact any prospective economic benefits of increased aviation capacity that an additional runway at Manchester could offer.

In one fell swoop, just by looking outward from the London centric bubble that our modern MP’s find themselves in, ‘Call me Dave’ could avoid political catastrophe. He may not make his decision for some time but considering the long term economic benefits are up in the air, and he is stuck under the ‘not in my back yard squad,’ surely he should look elsewhere other than London for a way out of this political conundrum. Up north, I dare say investment in aviation capacity, somewhere like Manchester would be welcomed and with HS2’s fairly imminent arrival, benefits to London would still be great. ‘Call me Dave’ might even pick up some votes for projecting the illusion that he is concerned about the northern powerhouse when we all know he doesn’t really.