Build for the future to keep the City running
THE recent Court of Appeal hearing regarding the St Paul’s protest will be welcome news to many working in the City. Although peaceful protest is a democratic right and often sparks important debate, it is equally important that the rights of people working in the City are also respected.
The mess and nuisance generated by months of extended encampment on the highway has caused disruption to the lives of many, and while it is important that issues are discussed and opinions are challenged, workers and residents in the City will hopefully now be allowed to go about their daily business in peace.
INFRASTRUCTURE MUST SOAR
The public sector surplus announced this month should hopefully ease some of the pressure exerted on the government in recent weeks. Ratings agency Moody’s recently warned of a 30 per cent chance of a UK downgrade should the government diverge from the current path of deficit reduction.
What we need to do now is look forward. The outcome of the current economic situation is dependent on a number of factors, many of which are beyond our control. In these circumstances what we must do is lay down adequate infrastructure to meet future demand.
This isn’t a case of building bridges to nowhere. History teaches us that infrastructure investment is a key driver of economic growth.
You only have to see the foresight and perseverance shown by City lawyer Charles Pearson in campaigning for an underground railway system in the 1840s and 50s despite widespread scepticism and a tough economic climate.
This counter-cyclical investment in infrastructure ensured that there was sufficient capacity to meet increasing pressure on London’s transport network and avoid bottlenecks to growth. The legacy of this huge project continues to this day – as will be clear to those of you reading this article seated (or probably standing) on a London Underground train.
As a world-leading business hub, London has traditionally benefited from excellent transport links to destinations all over the world. Therefore we welcome the government’s national infrastructure plan, which alongside Crossrail and the Tube upgrade should make a real difference to people working, living and visiting the capital.
But when it comes to aviation we are standing still while our rivals build for the future. Better-connected hubs such as Paris and Frankfurt already boast 1,000 more annual flights to the three largest cities in China than Heathrow. And it is a similar story for other high-growth markets.
As a result we are already losing business to other centres. So while Ken Livingstone, Boris Johnson and other politicians argue over the merits of different proposals the truth of the matter is that the City – and the UK – needs action now.
Heathrow is our primary international gateway, which means if alternative solutions cannot be found soon some very difficult political decisions will have to be taken.
The government has pledged to show the UK is open for business. It is time to prove it by taking control of aviation strategy and facing up to the difficult decisions.
Stuart Fraser is the policy chairman at Canada Corporation.