Transport Bill

Scottish air traffic control centre

I support amendment No. 454, which stands in my name. It would have the effect of ensuring that major planned development by National Air TrafficServices must be completed. I have a specific interest because, as most Members are aware, the new Scottish centre, which will secure 700 jobs, isin my constituency. As the issue is of such importance to my constituency, I am prepared to prioritise it over other issues. I have to insist that the Government support my amendment, otherwise I shall be unable to support the Government.

I have spoken about NATS on numerous occasions. I have raised many of the issues of concern that have been brought to me by constituents and by representatives of trade unions and the work force at Atlantic house.

Ministers are well aware that the proposed public-private partnership does not meet with the approval of the work force for many of the reasons that I stated on Second Reading, which have been repeated this afternoon.

Two centre strategy

I shall concentrate my comments on the repeated suggestions, especially over recent weeks, that the new Scottish centre will not come about if the public-private partnership goes ahead. I have questioned Ministers on numerous occasions.

My right hon. Friend the Prime Minister has twice publicly reiterated his commitment to the two-centre strategy. As recently as last week, he said that the strategic partnership agreement would guarantee the construction and the continued operation of the new Scottish centre at Prestwick. That was his reply to my question.

As I stated on Second Reading, the work force at Prestwick does not believe that the centre will go ahead. That is hardly surprising because there hasbeen a chronic lack of investment in NATS for many years. That was underpinned by the failed attempts at full-scale privatisation that were made by the Conservatives.

Cynicism among the workforce

I do not believe that the new Scottish centre would go ahead with full privatisation, and neither does anyone else. The period during which no progress has been made in building the centre has resulted in cynicism among the Prestwick work force.

It was announced in 1993 by the Conservative Government that the project would go ahead on the basis of a private finance initiative, but there isstill nothing on the ground. The PFI turned out to be unworkable. It would have cost at least twice the original budget of £200 million. It has had tobe abandoned in spite of the best efforts of the Government to make it work, along with NATS officials.

As hon. Members have said, since then, various Select Committee reports have been published, and the Government have conducted a consultation on the future structure of NATS. The initial contract was signed during that period and £60 million of public money has been released to fund the first phase of the contract. However, there is still nothing on the ground.

The first phase will consist of building a software system, some design work and eventually, a little initial building work. It is well known that a strong body of opinion in NATS itself feels that there is not any special need for the Prestwick centre. That, too, stems from the previous Government, who called into question the two-centre strategy and asked for a review, which concluded that the two centres were needed. The Labour Government accepted that when they came into power and have made a strong political commitment to providing the centre in Scotland as a replacement for the present facility at Prestwick.

Securing jobs

I repeat this evening what I have already told my right hon. Friend the Secretary of State: that is exactly what the people of Scotland expect froma Labour Government. However, it is also feared that a strategic partner will, at some point in the future, renege on the commitment to the two-centre strategy because of the cost and need for profit.

There is also anxiety about future contraction of the number of air traffic control centres in Europe. From the outset, I have said that my priority as a local Member of Parliament is securing the 700 jobs in my constituency. For threeyears, I have made a robust case for considering the options that are proposed in the new clauses.

However, it is clear that the Government intend to proceed with the public-private partnership for National Air Traffic Services. In the circumstances, I am sure that colleagues will seek further assurances on various aspects of the proposals. Indeed, I know that there have been discussions, especially on safety.

When the partnership was first proposed,I made an undertaking to ensure that the views of the work force were heard in government. No one in government, from the Prime Minister down, can deny that I have made every effort to represent those views.

Guarantee for the future

At this stage, I wish to ensure that the new Scottish centre is secure now and in future by asking the Government to go a stage beyond guaranteeing the two-centre strategy in the strategic agreement.

I hope that Ministers are minded to accept my amendment, which would entrench the new Scottish centre in primary legislation and enable me to do what my predecessor, Phil Gallie, totally failed to do: secure 700 highly skilled jobs at Prestwick and £25million for the Ayrshire economy.

Mr. Prescott: My hon. Friend the Member for Ayr (Ms Osborne) told us about the two-centre operation, pointing out that a privatised service might not retain two centres.

I listened carefully to what my hon. Friend had to say, and she made a powerful case tonight for what she has been advocating for a long time.

There is no disagreement between us on the matter. In fact, the Prime Minister made clear at the Dispatch Box that he accepted the spirit of heramendment and that her proposals would be written into the strategic agreement. The strategic partner would be required by the Government to build the second centre. The proposal would involve a golden share, directors and articles of association, as we pointed out to the Select Committee. I understand the fears expressed by my hon. Friend, and theconcern about the matter in Scotland. On behalf of the Government, I accept her amendment.

Ms Osborne: I just want to be absolutely sure about this. Is my right hon. Friend saying that he unequivocally accepts my amendment and that it will be added to the Bill?

Mr. Prescott: Yes, my hon. Friend has re-emphasised my point. Her amendment will become a Government amendment.