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Taxpayers 'could pay' for runway Taxpayers 'could pay for runway'
(about 5 hours later)
Taxpayers could end up subsidising the £9bn bill for Heathrow's third runway because of the "precarious" finances of the airport's operator, an MP has said.Taxpayers could end up subsidising the £9bn bill for Heathrow's third runway because of the "precarious" finances of the airport's operator, an MP has said.
Hayes and Harlington MP John McDonnell was speaking amid reports on what would happen if BAA went into administration.Hayes and Harlington MP John McDonnell was speaking amid reports on what would happen if BAA went into administration.
A government spokesman did not answer the BAA claims but insisted expansion was vital for the British economy. But a BAA spokesman has reiterated that the cost of developing Heathrow "will be met by the private sector".
Transport Minister Paul Clark did not answer the BAA claims but insisted expansion was vital for the UK economy.
Former transport secretary Geoff Hoon approved the plans for a third runway in January.Former transport secretary Geoff Hoon approved the plans for a third runway in January.
The decision provoked an angry backlash from climate campaigners and residents but airlines, business organisations, BAA and some unions welcomed the announcement. The decision provoked an angry backlash from climate campaigners and residents but airlines, businesses, BAA and some unions welcomed the announcement.
The fact has not changed that having a transport system is the lifeblood of Britain's economy, indeed that Heathrow is our only hub airport Paul Clark, junior transport ministerThe fact has not changed that having a transport system is the lifeblood of Britain's economy, indeed that Heathrow is our only hub airport Paul Clark, junior transport minister
Mr McDonnell, whose constituency includes Heathrow, highlighted a report in the Guardian newspaper which said BAA had urged ministers to revise plans that would give ministers powers over its airports if it went bust. Speaking in a Westminster Hall debate in Parliament, Mr McDonnell, whose constituency includes Heathrow, highlighted a report in the Guardian newspaper which said BAA had urged ministers to revise plans that would give ministers powers over its airports if it went bust.
The Labour MP said this would mean the government footing much of the bill for the controversial expansion.The Labour MP said this would mean the government footing much of the bill for the controversial expansion.
He said: "We now believe there will be direct subsidy as a result of BAA's precarious financial position and the precarious financial position of Grupo Ferrovial globally (BAA's parent company) and that we will have to actually subsidise the development itself, the construction of the runway and the terminal."He said: "We now believe there will be direct subsidy as a result of BAA's precarious financial position and the precarious financial position of Grupo Ferrovial globally (BAA's parent company) and that we will have to actually subsidise the development itself, the construction of the runway and the terminal."
Junior transport minister Paul Clark said not building the runway would be economically disastrous. 'Entirely disingenuous'
"The fact has not changed that having a transport system is the lifeblood of Britain's economy, indeed that Heathrow is our only hub airport," he said. Responding to the MP's concerns, BAA said: "We have consistently said that the cost of developing Heathrow to the standard of every one of its European competitors will be met by the private sector, and that remains the case.
"It is absolutely vital in terms of our international gateway, vital to our economy, connecting us to growth markets of the future, that has not changed." "In August 2008, BAA re-financed its debt, creating a stable, long-term platform from which to invest and it is entirely disingenuous of Mr McDonnell to make a connection between a draft government proposal on special administration for all regulated airports and the funding of a third runway at Heathrow."
Stressing the need for expansion, Mr Clark said: "The fact has not changed that having a transport system is the lifeblood of Britain's economy, indeed that Heathrow is our only hub airport."
A spokesman for the Department for Transport said: "At no time has the government ever suggested it will provide guarantees for the financing of a third runway or sixth terminal at Heathrow.
"The financing of developments at Heathrow is a matter for the operator (BAA) and the independent regulator, the CAA, and not government."
The 7,200ft (2.2km) runway is expected to be built sometime between 2015 and 2020.The 7,200ft (2.2km) runway is expected to be built sometime between 2015 and 2020.