Thames Valley: CBI president highlights importance of Heathrow

CBI president Paul Drechsler, in a recent speech at the Royal Military Academy, Sandhurst, urged the Government to get on with making a decision on new airport capacity in the South East.

Speaking at the Thames Valley CBI annual dinner, Drechsler, who also chairs the global, family-owned Bibby Line Group, as well as Teach First, stressed the importance for trade by saying: “More runways mean more routes to new markets. If the UK doesn’t act now, we could lose out on over £30 billion in trade by 2030.”

He mentioned the factors that make the Thames Valley a magnet for inward investment, such as Reading University. On access to skills, he said: “One of the things that makes this region so fantastic is its ability to attract the best and brightest from all around the world. Travel 35 miles across the Thames Valley, from west to east, and you cross the whole world of business. Bayer from Germany in Newbury; Cisco from the US in Reading; Honda from Japan in Bracknell; AkzoNobel  from the Netherlands in Slough; and many, many more.”

He then forcefully outlined the rationale for new airport capacity in the South East: “For decades, the word ‘politics’ has stood in the way. Since the 60s, we’ve seen four commissions: the Roskill Commission, the Runways Capacity in the South East Study, the pithily named ‘South East of England Regional Air Services Study’, and most recently the Airports Commission. But when it comes to ‘politics’ versus ‘action’, politics is 4-0 up. Commissions shouldn’t be a place where runways go to die.

“The Airports Commission recommended a third runway at Heathrow and this should be a starting point for the new government. Amsterdam has six runways and flies to the Chinese city of Xiamen four times a week. Paris Charles De Gaulle has four runways and flies to Wuhan three times a week. Frankfurt also has four runways and flies to Shenyang twice a week. Together, these three Chinese cities have nearly the same population as Australia. Yet how many direct flights do we have to them? Not a single one.

“Imagine you’re a Chinese investor looking for opportunity in Europe. Why would you fly to Paris, wait hours for a transfer, and then head to London, when you’ve got investment opportunities at your fingertips as soon as you land on French soil? If the UK doesn’t act now, we could lose out on over £30 billion in trade by 2030 with the BRIC economies alone.

“And that doesn’t even begin to consider other ‘fast-growth’ destinations like Mexico, Indonesia and Turkey.”

Yet he concluded: “Even in all this uncertainty, Thames Valley is still the ‘go to’ place for investment. And it’s not hard to see why. You’re still a launch-pad to the world; you’re still doing great research; and you’re still well-connected. But to stay ahead of Paris, Dublin, Stockholm and a hundred other cities we must work with government and build that new runway.”