Opinion

Manifestos must include commitment to quick decision on airport expansion

David Sleath, chief executive, Segro

Boosting international air connectivity must be front and centre of any credible long-term economic plan, says Segro chief executive David Sleath.

In the run-up to the general election, political leaders have a tough job in convincing voters that their party alone can address the key concerns of the British public.  Immigration, managing the economy, healthcare, public spending cuts and taxation remain high on the list of voters concerns. 

But I will be very interested to see which party has the best vision for Britain’s economic future.  I believe any party that is serious about winning the debate on jobs, growth and economic prosperity must include a manifesto commitment that pledges their support for a quick decision on airports expansion following the Airports Commission’s final report. 

Boosting international air connectivity must be front and centre of any credible long-term economic plan if the UK wants to retain its position as a global trading nation and reduce its trade deficit.  

"For 350 years the UK has been renowned as a global trading nation. I urge the next Government to make a swift decision following the recommendation by Sir Howard Davies to safeguard this position in decades to come."

It may come as a surprise, but air cargo accounts for forty per cent of the value of Britain’s exports.  These exports, which tend to be high value and time sensitivity, are carried in the belly-hold of passenger planes.  Therefore the UK’s success in exporting both services and manufactured products are intrinsically linked.  We trade twenty times more with countries with whom we have a direct air link, so it is clear why investment in our airports infrastructure is critical to the UK’s economic success.

However, the UK’s only hub airport, Heathrow has been full for the last 10 years and Gatwick is due to be at capacity by 2020.  800 of our customers are located in and around Heathrow airport, and this capacity constraint is having a direct impact on their ability to successfully operate internationally. It affects all sizes of businesses, from small enterprises to large corporate customers.  

We have manufacturing customers that export high value products such as welding tool machinery and water purification technology, who are at a competitive disadvantage compared to European competitors who are better connected to the emerging overseas markets.

UK businesses are already losing out to their French and German rivals in the race to do business with China.  Paris and Frankfurt have 60 weekly flights to China compared to 40 at  Heathrow, making it more difficult for many British firms to compete effectively. 

"There is a danger that the UK’s position as Europe’s leading destination for foreign investment will come under threat if we don’t connect with these markets."

The lack of direct air connectivity is not just effecting UK exporters.  China along with other emerging economies in Asia and South America will become a major source of inward investment in the future.  There is a danger that the UK’s position as Europe’s leading destination for foreign investment will come under threat if we don’t connect with these markets.  

Many business leaders want a decision on airport expansion resolved once and for all, and they are not alone. Over 50 MPs have publically backed the call for a quick decision on airport expansion, including notable signatories such as Louise Ellman MP, Chair of the Transport Select Committee, Graham Brady MP, Chair of the 1922 Committee of backbench Conservative MPs and Stephen Gilbert MP, Chair of the All Party Parliamentary Group on regional aviation.

For 350 years the UK has been renowned as a global trading nation. I urge the next Government to make a swift decision following the recommendation by Sir Howard Davies to safeguard this position in decades to come.  

David Sleath is Chief Executive of SEGRO and sits on the Leaders’ Group of Let Britain Fly www.letbritainfly.com 

Comments

In a longer piece, Mr Sleath could have commented that HS2 will not stop at East Midlands Airport, which is central to Derby, Nottingham, Leicester and Loughborough. And there's the rail tunnel proposed by NorthStart* and by BML2**, to connect Gatwick and the wider South London rail network via Lewisham to Stansted and Cambridge via Canary Wharf and Stratford. By relieving the London Bridge/Jubilee Line connection to Canary Wharf at peak hours it would allow more trains to access Gatwick through St Pancras. See: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/economic-affairs-committee/the-economic-case-for-hs2/written/12600.html * And https://hsnorthstart.wordpress.com : critiques welcome ** And http://www.bml2.co.uk
Expansion of Heathrow will do little but create years of turmoil and pollution for a massive percentage of London. Passengers will not get off most planes but use Heathrow as a hub for other European cities. Mr Sleath does not obviously live anywhere in the West of London. A quick decision is not going to happen.