NECC backs plans for third runway at Heathrow

The NECC has backed plans for a third runway at Heathrow airport, claiming that it would boost the region’s exporting capacity.

In a submission to the UK Airports Commission the North East Chamber of Commerce has called on the Government to back plans for a third runway to further boost the region’s impressive export credentials.

The North East is the only region to enjoy a positive balance of trade and exporting plays a vital role in the region’s economy.

And aviation is critical to provide the region’s business community access to opportunities in the global marketplace.

NECC Policy Specialist, Mark Stephenson, said: “A hub airport would be hugely beneficial to businesses throughout the UK and reforms to aviation policy could ensure that UK exporters have affordable and efficient links to overseas markets.

“Policies impacting on the viability of routes from regional airports in particular have the potential to damage the Government’s aim of rebalancing the UK economy.

“North East airports play a vital role in providing world-class connectivity to foreign and domestic markets.

“As opposed to many airports in the South East, our airports have capacity for sustainable growth as demand for air connectivity grows.”

Newcastle International Airport accommodated 4.4 million passengers in 2012, but could cater for between 7 and 8 million.

The airport is critical to the economy of the North East, supporting 8,500 jobs in the region, and contributing almost £400m (1% of total North East GVA) annually to the regional economy.

Durham Tees Valley International Airport provides access to international markets for North East businesses. For example, 70% of the businesses in the Wilton cluster are foreign owned. If access to and from it becomes less competitive, international companies could be minded to relocate.

NECC’s submission comes a week after the Transport Select Committee recommended Heathrow should be extended and Air Passenger Duty (APD) scrapped.

The NECC say that APD reforms should place a higher charge on congested airports and incentivise the use of regional airports where capacity exists, reducing pressure on crowded South East airports, unlocking valuable economic capacity in the North East.

Connections that airlines provide, such as those Emirates offers from Newcastle, are placed under increased pressure as a result of APD.

The links boost international trade and economic activity, since 2007 Emirates has carried over 500,000 passengers, increasing export markets to the Middle East and Australia.

Mark said: “APD has a disproportionate impact on regional airports. These flights are more marginal and have less demand than major hubs.

“APD hinders development of new connections from the North East to key international markets, making trade more difficult.

“While APD is not an issue covered by this Review it is vital that it is given consideration as an issue of the utmost significance impacting upon the aviation sector within the UK. Reform of APD should be viewed as an opportunity to progress the Government’s stated aim of rebalancing economic growth throughout the UK.

“In its present form, APD will stifle the development of new air routes from the North East and thus place into jeopardy the connections upon which exporters depend.”

“Reform of aviation policy that gives greater consideration to the vital role that regional airports play could and should be implemented in order to hasten economic recovery, rebalancing and growth, while this could also help to alleviate pressure on crowded airports in the South East of England.”