Airport chiefs welcome Queen’s Speech

BIRMINGHAM International Airport has welcomed proposals outlined in the Queen’s Speech to scrap plans for new developments in the South East, together with a desire to utilise existing and underused assets.

BIA management said the proposals would mean a more equitable air passenger solution for the country as a whole, with more jobs and prosperity being spread around the regions.

The airport is keen to take advantage of the new ruling and in recent weeks has moved to position itself as the main alternative to airports in London, highlighting its spare capacity, runway extension and planned transportation improvements – notably the High Speed Rail Link.

It has already said it has enough capacity to take another nine million passengers immediately – and an anticipated 21 million plus passengers in the future as expansion takes place.

John Morris, BIA’s head of government and industry affairs, said: “We welcome the Government’s new thinking, as outlined in the Queen’s Speech. In these difficult times it makes sense to use and sensibly improve the assets that you have got, rather than building whole new runways.

“We have plenty of capacity and, linked to high-speed rail, we are uniquely positioned to attract passengers from the overheated South East. I hope that the Government’s new thinking will encourage others to take a fresh look at their travel habits – and see that there are some easier alternatives to the ‘received wisdom’ of Heathrow.”

He said the airport would be ready to speak with the Government whenever necessary to try and develop any national strategy.

John Cridland, CBI Deputy Director-General, said the ruling on airports was significant.

“Airports provide a gateway to foreign markets, and are therefore vital to UK’s prosperity. This Bill opens a dialogue with the aviation industry and the wider business community about how airports can meet the needs of economy, in light of the Government’s decision to rule out runway development in the South East,” he said.

He said building a national high speed rail network would be an enormous undertaking and it was therefore encouraging to see the new Government planning its development from an early date.
 
“However, business will want to understand how high speed rail can be affordable in the current financial climate and be assured that other transport priorities will not be sacrificed as a consequence of its development,” he added.

Elsewhere, Birmingham Chamber of Commerce said the planned cap on non-EU immigrants into the UK would undermine accessibility to much-needed skills.

Katie Teasdale, the chamber’s policy leader, said: “From balti chefs to ballerinas, very many businesses rely on employees from overseas, with specialist skills in engineering, the sciences and academia.

“In a recent survey conducted by the chamber, 45% of members said that the capping of non-EU immigrants would have a negative effect on their recruitment procedures.  The remainder were indifferent and thought there would be no effect on their business.”

She said the chamber had also given a cautious welcome to the curb on public sector spending.

“It is important that cuts focus on non-productive parts of the public sector and not damage the business support services which will underpin recovery and job creation,” she said.

On decentralisation, she said the success of any measures would depend on the powers and funding local areas were given.

She added: “It is right that the government seeks to address and improve financial regulation and not introduce more regulation of banks and financial institutions.

“We also welcome the Government’s pledges to move forward on broadband growth and high speed rail networks. Economic prosperity will be founded upon good infrastructure and the development of a high speed rail network with the West Midlands at its heart.”

Business leaders in Coventry and Warwickshire welcomed elements of the Queen’s Speech but said its effect on local companies would only be gauged when more details emerged.

Alan Durham, director of policy at the Coventry and Warwickshire Chamber of Commerce, said firms would be pleased with the scrapping of the proposed 1% NI increase.

“We have campaigned on National Insurance in the run-up to and after the General Election and that is certainly something the vast majority of our members will welcome.”

Bruce Undy, Warwickshire and Coventry chairman of the Federation of Small Businesses said the speech contained some welcome initiatives to allow small firms to grow.

He said cutting the deficit was a high priority to a large number of small firms and the introduction of the Office for Budget Responsibility was therefore welcome.

Changes to the 1% increase in employers National Insurance Contributions would help safeguard 57,000 jobs and strengthen the recovery, he added.