The Queen's Speech - Privatisation
The following was sent out today by NATS Corporate Communications:
"Extract from the Queen’s Speech relating to the Public Private Partnership for NATS:
'A Bill will be reintroduced to establish a Strategic Rail Authority, it will contain measures to improve bus services and reduce road congestion. It will include measures for National Air Traffic Services, to separate safety regulation from operational matters and deliver major investment in the next generation technology.'
The Department of Environment, Transport and the Regions said:
The Bill would allow for the setting up of a Public Private Partnership (PPP) to deliver air traffic services in the UK. Safety is paramount and responsibility for it would remain in the public sector. Safety regulation would be separated from service provision and a new economic regulatory framework established. The Civil Aviation Authority would have responsibility for airspace policy. The PPP would give NATS access to the finance and skills needed to maintain and raise safety standards, and to be a major player in the European air traffic control system.
The DETR also said:
No other model would achieve all of our objectives for NATS - maintaining and improving safety, securing long term investment and access to capital, build on NATS’ operational strengths, broaden its management capability and ensure NATS continues to work in the public interest.
National Air Traffic Services’ response to the announcement:
NATS WELCOMES GOVERNMENT PLAN FOR PRIVATE SECTOR INVOLVEMENT IN AIR TRAFFIC CONTROL
The Chairman of National Air Traffic Services (NATS), Sir Roy McNulty, today welcomed the Government’s announcement in the Queen’s Speech indicating that the Government is to press ahead with its plans to involve the private sector in the running of Britain’s air traffic control system by establishing a public private partnership (PPP).
Sir Roy said: 'We are delighted that the first major milestone leading to the PPP has been successfully cleared and that the Government is committed to the PPP. We now look forward to the Government’s detailed implementation plans and discussions on these plans with all the parties involved.
'We are pleased because we believe the PPP will deliver four crucial benefits.
First, we will have access to the £1 billion we need to build the New Scottish Centre and other investments in modern technology and capacity to cope with growing traffic safely and efficiently.
'Second, we will have access to the broader range of commercial management skills we need. Third, we will be able to compete in international markets and make the most of our reputation as the safest and most efficient air traffic controllers in the world.
'And fourth, we will be able to end the uncertainty that has hung over NATS for the last five years.'
Sir Roy said that the system around the world of nationally-based, state-owned air traffic control systems which has been in place since the end of the Second World War was set to change. It was important that Britain’s competitors did not steal a march on NATS.
'NATS now has a golden opportunity to become an early mover in a market that is being made ripe for development by new satellite technologies and by the ever increasing demands of our airlines and airport customers.'
With the number of air travellers using Britain’s airports expected almost to double over the next decade to 310 million, Sir Roy said that the best way of removing the threat of sharply rising delays was to deliver a successful PPP."
NATS Corporate Communications Department,