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Civil Aviation Bill

My Lords, I hear what my noble friend says. He will also have the opportunity very shortly to make that point more fully in his speech, to which we all look forward. It is a point that we could discuss in Committee. However, as I think he will recognise, we have taken a considerable step forward by establishing the unit. It is only right that the Civil Aviation Authority should take responsibility for how it operates. Under current legislation, in the Airports Act 1986, an airport company owned by a local authority or a group of local authorities—known as a ““public airport company””—or any subsidiary is prevented from engaging in activities in which none of its shareholding local authorities has the power to engage. That restriction was considered entirely appropriate at the time. However, there have been calls in recent years for the restriction to be relaxed to allow for successful public airport companies, such as the Manchester Airports Group, to develop their businesses and to serve better their local area and the wider region. On two occasions amendments to other Bills were tabled in this House and subsequently withdrawn, although the Government made clear their sympathy with the principles of relaxing those restrictions and clarifying the position where there is uncertainty. In June 2003, the Government—in the guise of my noble friend Lord Rooker—gave a commitment to consider the matter further with a view to bringing forward legislation when a suitable opportunity arose. This is the opportunity and we are pleased to be honouring that commitment. The Bill will therefore allow the Secretary of State, by regulations, to specify permitted activities which he considers to be incidental to or connected with the business of operating a commercial airport. He will be able to set conditions on the permitted activities—for example, limiting their scope to activities of a commercial nature or to activities carried out in certain countries or territories. That could include selling their expertise in airport management and development, in air traffic management, airport security, specialised airport fire and rescue services, the ground handling of aircraft, passengers and freight, as well as freeing them to enter into a wider range of joint ventures in connection with airports. Our aim is to allow public airport companies the opportunity to compete on a more level playing field, here and abroad, and I commend these measures to the House.