Bosses urge Tories to back Heathrow expansion

Jul 14 2009 The Journal

BUSINESS chiefs want Conservative leader David Cameron to boost regional economic development by ripping up a pledge not to expand Heathrow Airport if he wins power.

The British Chamber of Commerce (BCC) said a new third runway at Heathrow would pump at least £115m a year into the North East economy by securing critical regional air links and connections to global destinations.

A new runway at Heathrow – opposed by the Tories – would add £30bn to the national economy while each year of delay is costing £1bn, according to a new BCC report.

The call comes after airport chiefs told MPs earlier this year that aviation was a “critical component” of the global economy and that the North East had to be connected to compete effectively.

Newcastle Airport also warned flights could be squeezed out of Heathrow unless the Government ring-fenced slots. The airport employs more than 3,000 people and directly supports another 5,000 jobs across the region, putting £400m into the economy.

BCC director general David Frost said expanding Heathrow was vital especially when the UK was in a “very difficult position.”

He said: “From where I sit it won’t be the growth in the public sector that is going to drive the economy forward in the way it has over the last 10 years or so. It is going to be global trade. We are going to have to really build on our trading roots.

“To do that we need good international connections. We can’t get away from that.

“We understand where the Conservatives are coming from, but we believe we have a very strong responsibility on behalf of the business community across the whole of the UK to say this is the cost of not going ahead with the expansion of Heathrow.”

Mr Frost added: “Without additional capacity at our major hub airport, we will continue to fall behind our Continental competitors.

“We must invest now to safeguard our economic future or we risk wasting £30bn fumbling around for an alternative.”

The report found a third Heathrow runway would deliver between £8.6bn and £12.8bn in increased productivity by cutting delays and increasing frequency of flights.

And there would be approximately £20bn in wider economic benefits like higher employment. Some 60% of this is predicted to be outside London and the South East – with the North East enjoying around a £4bn boost.

Passengers would also benefit from flights to new destinations, removing the need to wait for transfers at airports outside the UK, said the BCC report.

William Green