Speech to Airport Operators' Association

Speech by Rt Hon. Douglas Alexander, Secretary of State for Transport to the Airport Operators' Association.

[Check Against Delivery]

1. Ladies and Gentlemen, thank you for a very warm welcome to the Airport Operators Association annual conference. It is a privilege to be here for the first time as Secretary of State for Transport.
2. And it has been a privilege to work with you all especially through the challenging events of the last three months, which have had such a profound impact on the aviation industry as a whole.
3. And although I was in constant contact with many of you as the events of August unfolded, I am very pleased to have this opportunity to address you all today. I would like to begin my remarks by thanking you.
4. August 10 was an extraordinary day for everyone in the UK aviation industry - operators, airlines, passengers and staff on the ground.
5. We needed to respond quickly to avert a terrible threat. And it is a testament to the skill and professionalism of this industry - and you in this room - that you managed, for the most part, to keep aircraft flying under very challenging circumstances.
6. So thank you for the work that you do, and thank you for the difference you make.
7. It is hard to overstate the significance of aviation in our modern world - where we need to respond not just to the widely recognised challenges of globalisation, but also to the powerful forces of interdependence.
8. That means adapting to international economics, changing technologies, communications, issues of safety and security - and it means having a clearer and more immediate sense of the way people live their lives around the globe.
9. The growth of aviation has been a powerful catalyst for these changes. Our global economy depends on aviation shrinking the world and ensuring passengers and cargo reach their destinations in the shortest possible time.
10. And aviation has been a powerful catalyst for regional economic connectivity and growth. Over 220 million passengers flew from UK airports last year, compared to 32 million in 1970, and regional airports have expanded faster than London services over the last decade.
11. Now this presents us with great challenges - as well as great opportunities. I believe these challenges will determine the shape of aviation in the decades to come.
12. And I would like to address three key areas in my remarks today.
13. First, as we move towards the low carbon economy outlined by Nicholas Stern in his recent report, we need to recognise that the expansion of aviation must not come at the cost of recognising and responding to our environmental obligations.
14. Second, and within the context of this environmental sustainability we need to make sure this industry continues to grow competitively, to support our strong and growing economy.
15. Third - and crucially, we need to continue to work in real partnership together against the ongoing and serious threat we face from global terrorism.
16. For my first point, it is time for us to face up to the economics of climate change, set out so compellingly by Sir Nicholas Stern in his review a fortnight ago.
17. This work has given us a clearer understanding of the impact of carbon emissions at a global level - along with the clear message that taking the effect of carbon emissions into account now will lead to substantial savings and underpin growth in the long term.
18. Environmental problems such as air quality and noise can have different impacts according to location, but carbon emissions don't just stay conveniently within borders and boundaries. They move around affecting citizens and ecosystems right across the planet.
19. Aviation may still represent just a few percentage points of global CO2 emissions now, but the sector continues to grow - and so will the problem, if no action is taken.
20. This Government has made our view consistently clear, that tackling carbon emissions must be a priority issue for the global community. We are continuing to press this point internationally, as I did to the Aviation Club in Washington during a recent visit.
21. The United Nations Climate Change Convention has requested that the International Civil Aviation Organisation takes action on aviation emissions, recognising that a global approach is essential. This is encouraging.
22. But meanwhile we hope to see Europe set an example by bringing aviation within the EU's Emissions Trading Scheme. That is why I recently visited Berlin with Environment Secretary David Milliband to continue our campaign to include aviation in the next round of the EU emissions trading scheme - by 2008 or as soon as practicable thereafter.
23. Many members of the aviation sector deserve credit for the positive action they are taking. They want to show a responsible attitude towards climate change, whether it is focusing on operational emissions reductions, such as investment in biofuels - or companies looking to take action on carbon offsetting.
24. We will work with the industry to deliver co-operative solutions. For example on offsetting, we are taking responsibility for the climate impacts of officials and Minister's air travel through our offsetting scheme. And we will look to assist others in ensuring their schemes deliver robust carbon savings.
25. But alongside the global impact of carbon emissions, we also need to work together to tackle other negative impacts of the industry - such as noise and local air quality around airports.
26. Through the Civil Aviation Act, recently agreed in Parliament, we've introduced measures to control noise and local air quality emissions. This means that airports will be able to penalise the loudest, most polluting aircraft.
27. And as we made clear at the time of the Future of Air Transport White Paper, Heathrow growth is dependent on meeting noise and air quality limits. We will consult on these issues next year.
28. I announced details of the night restrictions regime at Heathrow, Gatwick and Stansted in June of this year. These will operate until 2012.
29. I welcome the leadership of all those airports that are taking steps to improve local air quality - for example by improving public transport links.
30. And I thank all of you who have promoted plans for airport development in consultation with local communities.
31. Your masterplans provide a good foundation for measures to tackle noise, air quality, blight, and to reduce the impact on local biodiversity. We set you a challenge - and you responded.
32. Every airport needs a plan to engage with surrounding communities and the wider public, to make sure the issues of growth and sustainability are thoroughly understood.
33. The second challenge is ensure that the aviation sector continues to thrive in a competitive global market.
34. Aviation is by definition an international industry. Connecting the countries of the world, it has to survive in a global environment. But when it's faced with the sort of environmental challenges I've already outlined, we must make sure that globalism does not act as a brake on adapting to the future.
35. You are crucial to our economy and our future prosperity.
36. Aviation added £11 billion to the economy in 2004 - about 1% of all economic activity in this country.
37. You have helped us achieve 57 consecutive quarters of sustained economic growth - the longest period of growth this country has ever seen.
38. And we want you to help us extend this record long into the future.
39. I believe that opening up markets and letting airlines behave like normal commercial businesses is one of the keys to continuing prosperity. That is why we are all striving to secure the liberalisation of the world's biggest aviation market - that which spans the North Atlantic.
40. And we believe that the best way to achieve that objective is through a comprehensive EU-US agreement.
41. But it has to be an agreement that is clear, meaningful, robust and balanced - to ensure equality of access to each other's markets, so that our respective aviation industries can compete with each other on a fair and level playing field.
42. That is what the EU-US agreement was intended to achieve and what - in the final analysis - it must deliver. And again, I made this clear in my recent remarks at the International Aviation Club in Washington.
43. Notwithstanding the results of the Mid Term Elections in the United States - and the significant shift of power both in the Senate and the House - it is important that the US Government continues to focus on this issue - so that further progress can be made.
44. It is also crucial that we make the most of existing airport capacity in this country through a process of improvement, investment and modernisation - particularly at regional airports, where expansion is fastest.
45. The national picture of an expanding aviation sector supporting a growing economy is replicated in regions across the country.
46. Since 1997, we've seen tremendous regeneration in cities like Newcastle, Birmingham, Manchester and Glasgow, and surrounding areas.
47. Aviation growth has contributed significantly to economic growth throughout these regions - improving communications, boosting business, and opening up British markets outside south-east England to the rest of the world.
48. Close co-operation between the industry, local authorities and indeed Government should be the key to future growth.
49. The third of the major challenges facing the industry is responding to the threat of global terrorism. This threat is real, it is serious, and as Dame Eliza Manningham-Buller outlined last week - it is ongoing.
50. Airports and aircraft represent an irresistible target for people who want to threaten our way of life. And they will continue to be so for the foreseeable future.
51. Just as the terrorism threat is evolving, so our response is evolving too.
52. On August 10, we needed to respond immediately to the threat from liquid explosives, and we did so as effectively as possible.
53. A terrible atrocity was avoided - thanks to the intelligence work of the police and security services who identified the plot, and thanks to airport operators, airlines and many others who responded so effectively to the threat.
54. It was an outstanding effort. I thank everyone who contributed, and who managed to keep planes flying with the minimum of disruption.
55. But in the face of a resourceful, determined enemy, we cannot afford to be complacent. Evidence and experience is teaching us that as we respond to one threat, a new one will emerge and we will need to work together to deal with it. Terrorism is here to stay. And as long as terrorism's a threat, aviation will be threatened.
56. The close working relationships that have developed between my security experts and you in the industry are fundamental to achieving the best standards of security we possible can, whilst allowing passengers to travel as freely as possible, and these relationships are very much valued.
57. Now despite these challenges, I am optimistic about the future of aviation in this country. Because each of the challenges I have outlined present real opportunities.
58. We need to manage growth in a sustainable way.
59. In a way that allows every major region of the country to compete.
60. Our future strategy will depend on striking the right balance.
61. Between airport security and airport efficiency.
62. Between burgeoning demand, and environmental impact.
63. Between the need to manage aviation nationally, and globally.
64. This is the right approach for passengers, with both Government and the industry working together to achieve it. Together, I am confident that we will be able to deliver what is needed.

Delivered: 15 November 2006

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)