Report of the Director of City Centre Growth and Infrastructure attached

This report provides an update on the role of Manchester Airport in the economy of the city; the current economic situation of the Airport following the impact of COVID-19; and the next steps in the economic future for the Airport.

The Committee considered the report of the Director of City Centre Growth and Infrastructure that provided an update on the role of Manchester Airport in the economy of the city; the current economic situation of the Airport following the impact of COVID-19; and the next steps in the economic future for the Airport.

Key points and themes of the report included:-

·                Describing the position of Manchester Airport in the local economy;

·                Current economic situation of Manchester Airport;

·                Employment, recruitment, and training opportunities at the Airport;

·                An update on Airport City, an Enterprise Zone with the capability to provide 5 million sq. ft. of offices, hotels, advanced manufacturing, logistics facilities and retail space;

·                Airport future challenges and opportunities.

Further to the report the Committee also received a presentation from the Manchester Airports Group (MAG).

Key points and themes of the presentation included:-

·                Describing the impact of COVID on MAG traffic;

·                Financial performance pre-COVID;

·                Financial estimates, COVID and recovery period;

·                Passenger recovery data;

·                Focus areas for 2022;

·                An update on the Manchester Transformation Programme;

·                Opportunities for Greater Manchester, including the Airport Academy and the support to local communities; and

·                The path to Net Zero Aviation.

The Chair read from a prepared statement from Councillor Nunney, Ward Councillor for Woodhouse Park who had been invited to the meeting but was unable to attend. His statement referred to the issues experienced by local residents that related to inconsiderate parking and associated litter, the loss of green space and poor air quality associated with both vehicles and aircraft.

The Committee then heard from Councillor Newman, Ward Councillor for Woodhouse Park who addressed the meeting on behalf of himself and his fellow ward Councillor, Councillor Sarah Judge. Whilst acknowledging the positive economic benefits that the airport brought to the area he also spoke of the adverse impacts that were frequently experienced by local residents. Councillor Newman spoke of the inconsiderate and anti-social car parking practices on the public highway, both by individuals attending the airport, taxi drivers and rogue car parking firms operating in the area. He further referred to issues of speeding and noise from vehicles and the use of ‘rat runs’ that further contributed to poor air quality experienced by local residents. He stated that local elected Members had successfully lobbied the airport to introduce measures to mitigate the impacts described, making reference to a resident parking scheme and localised traffic calming measures and he paid tribute to the positive engagement experienced when liaising with the management team at the airport.

He further made reference to the positive community engagement programmes that the airport had delivered over the previous years that had benefited both local older residents and school children. He further called for the need to ensure that the training and employment opportunities associated with the site benefited the local population and consideration needed to be given as to where recruitment events took place to ensure local residents benefited from these opportunities. He stated that public transport links needed to be improved to the site and he called for additional apprenticeship and training opportunities across the site for local residents. He concluded by stating that on balance local residents did support and welcome the airport and he further commented upon the financial contribution MAG made to the Council to enable it to deliver important services on behalf of Manchester residents.

Some of the key points that arose from the Committees discussions were:-

·                Noting the increasing cost of fuel could adversely impact the number of people flying if prices increased;

·                Stating that there was a tension between increased passenger numbers and the need to address carbon emissions;

·                The need to improve public transport links to the airport site, including cycling, noting the need for these at all times of the day due to the nature of shift patterns and to ensure that residents across the city could benefit from employment opportunities at the site;

·                Car parking at the airport was expensive and would this be reviewed, noting that this could mitigate some of the issues of inconsiderate parking of vehicles experienced by local residents;

·                Noting the need for future green skills and jobs, did MAG engage with the existing educational and research institutions in Manchester;

·                Noting the conversation that emerged regarding the appropriate use of language and value of, when discussing the different levels of jobs and not to pit the economy against the environment; and

·                The need to ensure that MAG was promoted as an attractive employer that delivered training and job progression opportunities.

Tim Hawkins, Chief of Staff, Manchester Airports Group responded to the comments and questions raised by advising that MAG remained committed to achieving net zero by 2038 and aviation to be net zero by 2050. He stated that MAG was taking a leading role in the development and management of sustainable aviation fuel. He stated that this presented the opportunity to develop links with local research institutions and deliver the related employment and skills opportunities. In regard to passenger numbers and issues relating to future variants and travel restrictions that all impacted on the finical viability of the business, he advised that MAG were working closely with both the Department of Transport and the Department of Health to plan and model for any potential future variant wave, using the lessons learnt from the previous years on the efficacy of travel restrictions. He further recognised the potential impact of rising fuel prices and the subsequent rising costs on air travel, he said that this situation continued to be closely monitored, adding that aviation fuel was purchased a year in advance by operators. He further recognised the issues raised regarding the challenges of public transport links, particularly as the site is a 24-hour operation. He said that they did engage with local operators on the issue and referenced the scheme that was operated to facilitate Stansted airport and that options to replicate this subsidised model were being discussed with local operators in Manchester. With regard to the issue of car parking at the site, he commented that car parking was integral to the business model and the pricing structure was reviewed to consider the correct balance was struck between supply and demand.

Jan Bramall, Chief Financial Officer, Manchester Airports Group discussed the issue of training and employment opportunities at the site. She described that the Airport Academy offered free training programmes. Upon completion, participants were guaranteed an interview with the airport. In 2019, 435 people from in and around Manchester gained employment at the airport as a result of the Academy’s support. She stated that MAG were committed to a policy of ‘grow your own talent’ and they worked closely with the Trade Unions to ensure the jobs offered were attractive across the piece, noting that this approach also helped with the retention of staff in the very competitive jobs market, noting the previous comments regarding the challenge presented by working shift patterns. She advised the Committee that MAG was committed to the Greater Manchester Good Employment Charter. She further referred to AeroZone, the state-of-the-art education centre on its campus. She stated that this inspired young people and challenged young people to consider the different range of career options and training opportunities available across the industry. She described that this was promoted via a range of mediums and encouraged all Councillors to promote this offer with their existing networks.

The Director of Inclusive Economy said she would encourage MAG to become a Real Living Wage Employer and to support the plans to make Greater Manchester a Living Wage City Region, to ensure that employees across all 10 boroughs are paid a real Living Wage and offered good contracts and working conditions.

In terms of the specific request for data and information relating to the numbers and geographical breakdown of people attending outreach and employment promotional events and the numbers of anticipated job creation would be provided to Members following the meeting.

The Leader stated that she endorsed the comments regarding the appropriate use of language when referring to the different types of employment across the city. She further acknowledged the issues and challenges that arose from the existing fragmented public transport network, noting that the recent announcements relating to bus services would help address the issues described. 

Decision

To note the report and presentation.