NORTH WANTS TO REOPEN LONDON RUNWAY DEBATE.

 

The debate about the future of our northern airports is about to take off as a number of issues come to a head and the incoming government next May is challenged to decide on a new runway at Gatwick or Heathrow

 

Up North the big player is Manchester. Brimming with confidence as part of an airport group that also owns Stansted, it is seeing Airport City being constructed to massively increase its retail offer and freight handling capacity. It wants more international slots to fill its unused capacity.

 

Leeds Airport is considering a £38m investment package but road links to the A65 remain an issue. Newcastle now has a daily flight to Dubai but are concerned about the Scottish government potentially reducing Air Passenger Duty.

 

Elsewhere the picture is less rosy. Blackpool Airport recently closed altogether although there are hopes that it might be re-licensed particularly to service the Morecambe Bay gas industry. Finally there is Liverpool where passenger numbers are falling from 5.3 million in 2011 to 4.2 million in 2013.

 

When the Davies Commission was set up to decide on the options for maintaining the UK’s role as a major international hub, airports in the North and Midlands pointed out their available capacity to take more international flights. In contrast Heathrow has been full for years.

 

The option of including Birmingham and Manchester in particular in a dispersed huge hub that would also include Heathrow and Gatwick was dismissed by the chairman Sir Howard Davies. The reasoning was that airlines wanted to fly out of London and if attempts were made to bribe or give them an incentive to go elsewhere then they had other “hub” options around the world. Hubbing is crucial for airlines, finding the airport that can offer the best options for interconnections. The airlines take a global view and therefore the UK is in hub competition with not just Amsterdam and Frankfurt, but Dubai as well.

 

More recently the Davies Commission rejected Boris Johnson’s idea for a new airport in the Thames estuary which would have cost £90bn.

 

Final consultation is now under way on the remaining options which are two alternatives at Heathrow and one at Gatwick. Sir Howard Davies has been deliberately told to make his final report just after the General Election as this is a decision politicians don’t want to take. There have been years of prevarication already because whichever decision is taken residents will be up in arms over the noise issue.

 

It is on the cards that no decision will be taken by the new government. The Blair/Brown government, with working majorities funked a decision. If we have a minority government in May, how likely is it that a decision will be made? The Times reported Sir Howard’s somewhat intemperate reaction when I put this possibility to him recently. It was along the lines of what do you expect me to do? It was the understandable reaction of a man trying to do a very difficult job.

 

That won’t worry northern airports. Sir Richard Leese,chairman of Core Cities, told me recently that he rejected the hub concept, wanted the whole issue of a new runway in the South East to be put off yet again and wanted Manchester’s case to be considered once again. He pointed out that HS2 would have its own airport station which strengthened the case for Manchester solving the South East runway capacity problem.

 

 

 

 

 

 

 

OSBORNE ELECTION WINNER….AND AFTER?

 

 

 

AUTUMN STATEMENT.

 

George Osborne may well have done enough to ensure the Conservatives are the largest party after next May’s General Election.

 

The underlying perception that the government has stabilised the economy has been around for a while and probably would have been enough to secure electoral success. This week’s blatantly electioneering autumn statement and accompanying announcements on roads, flood relief schemes and the scrapping of the trans Pennine pacer trains should prove the icing on the cake.

 

The fact that the election will be followed by a further massive attack on council spending, a probable failure to eliminate the deficit at any time in the next parliament and the real possibility of tax rises…well we’ll deal with that later.

 

EFFECT ON THE NORTH.

 

Labour must be worried by the way that George Osborne has positioned himself as champion of the Northern Powerhouse but before we look at those measures, there is an important question. What happened to Nick Clegg’s promise that Leeds and Sheffield were to get their devolution packages before the Autumn Statement? Perhaps that was why the Lib Dem leader absented himself from the Commons. The word is that Clegg’s insistence that the package should not involve a directly elected mayor has not gone down well with the Treasury.

 

It is striking what benefits Greater Manchester is reaping from its coherent political leadership. On top of last month’s devolution package it is to get the Sir Henry Royce Materials Research Centre and a new theatre space at the old Granada TV site. It is to be called The Factory Theatre, a fitting tribute to Tony Wilson, founder of Factory Records, who did so much to champion the cause of Northern devolution.

 

But the rest of the north hasn’t been forgotten. Improved access to the Port of Liverpool, flood defence schemes at Rossall in Lancashire and the Humber Estuary and a College to train people for the oil and gas industries in Blackpool are all welcome.

 

A sovereign wealth fund is be set up so that northern communities can benefit from shale gas extraction and under new franchises for Northern and Trans Pennine rail services, the dreaded pacer trains are to finally be replaced.

 

The government is still not addressing the major devolution questions for the whole of the North, people are on low wages, food banks grow and the services people depend on may be swept away, but it is going to be difficult for Labour to match the Tories Northern Powerhouse concept.

 

ALL IN IT TOGETHER.

 

There has been criticism that George Osborne has had two jobs, as Chancellor and Tory Party strategist. But you can see the virtue of it after Wednesday’s statement.

 

The Stamp Duty changes make Labour’s mansion tax proposals look clumsy and complex. It is true that their mansion tax would bring in a revenue stream every year whereas Stamp Duty is paid once. However the rich really will be clobbered by the changes whilst people buying lower priced houses are benefiting immediately from a welcome windfall.

 

To further tackle the perception that the Chancellor favours his rich friends, banks are facing a new tax and there will be an attempt to get multinationals to pay tax properly in the UK, although Osborne’s unilateral move is attracting criticism that it is not being coordinated internationally.

 

National insurance relief on apprentices, loans for post graduates, measures on Air Passenger Duty and ISAs, plus the petrol duty freeze will all contribute to a good feeling going into the election campaign.

 

Labour will rightly point to the big picture failure of the Chancellor to redeem his promise to balance the books in this parliament and the day of reckoning that awaits us all, but will that sway the voters?

 

 

 

 

 

NOW MORE THAN EVER, DEMAND A NORTHERN COUNCIL

 

 

SCOTLAND AND THE NORTH.

 

Now we see more clearly what we are going to have to contend with as we try and bring power to the North.

 

We knew about Boris land in the South East and London with its power to drain the brightest talent southwards and its vastly disproportionate transport spending.

 

Now we see the full dimension of the challenge north of the border. The Scottish Government will retain all the income tax raised in Scotland, a share of VAT and power over areas of welfare. Air Passenger Duty will be a devolved power and expect it to be cut. APD is an issue that Manchester and Leeds airports have been campaigning on for years without success. Now they face a competitive disadvantage which could be significant in the border region, particularly Newcastle.

 

The city regionalists have written to The Times along the lines of what’s right for Scotland is right for the cities. Quite right but even our northern cities are not fit for purpose in the new economic landscape. We need to build on the Rail North and One North concepts, adding functions that apply across the North and make it a democratically elected body so that ordinary people have a say.

 

Meanwhile, as I write, we await the Combined Authority deals for Leeds and Sheffield promised by Nick Clegg before the Autumn Statement. On Merseyside the problems continue. Phil Davies, the leader of Wirral and the City Region has now stated that the concept of an elected mayor should be put to a referendum. That is unlikely to please Liverpool Mayor Joe Anderson.

 

JUERGEN SHOWS THE WAY.

 

Business leaders usually recoil when it is suggested they become involved in politics. But with an elected mayor for Greater Manchester on the horizon, it is interesting to see some of the non political names coming forward. For instance Scott Fletcher of ANS Group, and lively contributor to Downtown events, has not ruled himself out.

 

Another man who impressed me this week with his wider skills and vision was Juergen Maier, Chief Executive of Siemens UK. He is also Chairman of the North West Business Leadership Team, an organisation that takes a region wide view on the big issues facing business.

 

It published its business manifesto this week. It calls for action in the areas of skills, transport, world class science and emphasising our energy resources.

 

Speaking to MPs at Westminster Maier made a number of key points including the fact that there are too many skills initiatives for business to cope with. He said devolution had to operate within a national framework to preserve coherence (that is why a constitutional convention is essential). He also showed how far behind we are in only now arguing for HS3. Essen, Dortmund and Cologne were linked 25 years ago. He also hoped the autumn statement might bring economic catapults in precision medicine and energy to the North West.

 

The North needs leaders like Juergen Maier.

 

AUTUMN STATEMENT.

 

Next week’s statement by the Chancellor will be important for northern business. With the election looming we can expect further measures in connection with the “northern powerhouse” as George Osborne seeks to confirm his position as a friend of the north.

 

But we mustn’t be distracted from some hard underlying truths. There are signs that the fragile recovery is stalling, the government has missed its deficit reduction targets by a wide margin and all these city region councils that are going to get devolved powers are facing remorseless cuts in their budgets.

 

 

FLAGS: A LEGACY OF THE BNP

FLAGS.

Emily Thornbury has increased the impression that Labour is tightly run by a middle class bunch from North London out of touch with working people and immune to advice from all but a tight circle of inexperienced advisers. 

She had to go. That said, the now almost non existent British National Party, is a factor in this row. I remember when houses in Burnley were draped in Union Jacks or English flags as a definite statement of support for the BNP. They appropriated the symbols of our patriotism. The very sad result is that there can be doubts about why flags are being displayed and ordinary patriots can be misunderstood.

On the by election itself, it wasn’t the landslide UKIP hoped for. Let’s hope that ,”I make it up as I go along” Farage, continues to be questioned on all the policies a party needs to be convincing on, if it wants to hold the balance of power

 

 

KEEP PUNISHING THE BANKERS.

 

 

That household name Niilo Jaaskinen has spoken for the millions of people across Europe and the UK still suffering the consequences of the reckless banking practices that nearly wrecked western economies six years ago.

 

The Advocate General of the EU Court of Justice has rejected Britain’s challenge to its cap on bankers’ bonuses. Not that it was very draconian. These bankers get paid a fortune in salaries in the first place. The cap is only to restrict bonuses to 100% of banker’s pay or 200% with shareholder approval.

 

Yet George Osborne indulges in the old shroud waving about bankers taking their business away from Britain. They won’t do that George. They love the London lifestyle, the overheated property market that they can speculate in and a British government that still has some way to go in curbing the reckless behaviour that still continues. As this week’s fines indicate these people have learnt very little.

 

The indictment list is long and disgraceful. Reckless lending followed by unjustified refusals to lend to small business, mis-selling of payment protection, currency and lending rate manipulation and at a local level the closure of branches, attempts to scrap the cheque and force people into on line banking.

 

 

BBC LICENCE FEE.

 

I chaired a good debate on the future of the BBC licence fee this week at the Nations and Regions Media conference in Salford. It is going to become a hot topic right after the election when the BBC’s charter is up for renewal.

 

I think we would be crazy to put in jeopardy one of our finest institutions, admired the world over. We export British culture and values all over the world via BBC programmes, and earn a lot of revenue. The creative flow is dependent on a well resourced BBC in this country and that is what is under threat.

 

The BBC has many media enemies who envy the £3.7bn of public money. They see the BBC as a threat to their commercial interests and take every opportunity to pour bile on the BBC. £3.7bn is a lot of money and the corporation has given its opponents plenty of opportunities to criticise in recent years.

 

Massive pay-offs to executives and the Savile scandal have tarnished the brand but set against that are excellent programmes like Sherlock, The Fall, Strictly Come Dancing, Radio 4 comedy and any British State occasion. All this for 40p a day. Compare that to your sky high Sky package cost.

 

The licence fee negotiations will be fraught, particularly if the Conservatives are the majority party. Some Tory backbenchers still regard it as the Bolshevik Broadcasting Corporation and are backing a bill to decriminalise non payment of the fee which lands people with a criminal record. Then there is the issue of technology. You can now access recorded BBC programmes on I Player without a licence. Will decriminalisation and the growth in new media access undermine the principal of paying to watch the BBC?

 

Harriet Harman, the Shadow Media minister spoke in Salford and said nobody had come up with a better model for funding the BBC that had convinced her. Of course there are other models including sponsorship and subscription, but how much would you be prepared to pay? Then, God forbid, there is advertising. My enjoyment of ITV drama is considerably reduced by the quarter of an hour per hour of adverts. Let that not come to the BBC.