TRANSPORTATION AND INFRASTRUCTURE COMMITTEE 24 MARCH 2021 POLICY AND RESOURCES COMMITTEE 31 MARCH 2021 AIR TRAFFIC MANAGEMENT STRATEGY: ISLANDS COMMUNITIES IMPACT ASSESSMENT Report by Chief Executive PURPOSE 1.1 The purpose of the Report is to update the Comhairle on the findings of the retrospective Island Communities Impact Assessment commissioned by Highlands and Islands Airports Ltd (HIAL) and undertaken by Reference Economic Consultants. EXECUTIVE SUMMARY 2.1 In January 2018, Scottish Government approved HIAL’s intention to proceed with their Air Traffic Management Strategy (ATMS) proposals. HIAL approved the ATMS business case in October 2019 which was subsequently approved by Transport Scotland in December 2019. 2.2 The retrospective Island Communities Impact Assessment (ICIA) commissioned by Highlands and Islands Airports Ltd (HIAL), undertaken by Reference Economic Consultants, was published in February 2021 and received by the Comhairle earlier this month. 2.3 The scope of the ICIA did not include any consideration or judgement as to whether HIAL’s ATMS proposals should proceed as planned or not, neither is it an Options Appraisal, but is instead confined to assessing the economic and community impacts of the ATMS. In that sense, it is limited in scope and the findings could be regarded as predictable in that the ATMS will impact significantly, socially and economically, on individuals, families and communities affected. 2.4 This Report is concerned only with the impacts on families, communities and the wider local economies on Lewis and Uist, rather than the merits of a complex technical solution, unilaterally pursued by HIAL and Transport Scotland, and about which there is much current debate about cost effectiveness. HIAL’s Air Traffic Management Strategy’s Island Communities Impact Assessment can be viewed here. The ICIA is redacted. Key findings for Uist and Lewis, respectively, are at paragraphs 9.1 to 9.14 and paragraphs 10.1 to 10.9 of the Report. 2.5 On 24 June 2020, the Comhairle took a decision to “authorise the Chief Executive, in consultation with the Chairs and Vice Chairs of the Policy and Resources and Transportation and Infrastructure Committees, to pursue an urgent dialogue with Highlands and Islands Airports Limited with reference to the Comhairle’s view that HIAL’s procedures and processes are legally questionable and, thereafter, to take such action, again in consultation with the Chairs and Vice-Chairs of the Policy and Resources and Transportation and Infrastructure Committees, as may be required to safeguard the Comhairle and Western Isles communities’ interests”. 2.6 Having already sought legal advice on this matter, and in light of the findings of HIAL’s ICIA, an update will be provided to both Committees on the legal aspects of this matter. RECOMMENDATION 3.1 It is recommended that the Comhairle authorise the Chief Executive, in consultation with the Chairs and Vice Chairs of Policy and Resources, and Transportation and Infrastructure, Committees, to pursue dialogue with Scottish Government, and thereafter to take such action, again in consultation with the Chairs and Vice-Chairs of the Policy and Resources and Transportation and Infrastructure Committees, as may be required to safeguard the Comhairle and the social and economic interests of the Western Isles communities’ interests. Contact Officers: Malcolm Burr, Chief Executive, [email protected] Angus Murray, Principal Strategy Manager, [email protected] Appendix: None Background Papers: HIAL’s Air Traffic Management Strategy Island Communities Impact Assessment IMPLICATIONS 4.1 The following implications are applicable in terms of the Report. Resource Implications Implications/None Financial There are financial implications for the communities affected. Legal Legal implications will be advised to both Committees. Staffing There will be staffing implications if ATMS goes ahead. Assets and Property There may be implications. Strategic Implications Implications/None Risk The key risk is the adverse social and economic impact on communities affected if HIAL’s ATMS proposals proceed as planned. Equalities None Corporate Strategy: Priority 1.6: Transport Policy Recovery and Introduce a new Outer Hebrides Local Transport Strategy to support the Renewal: 2020-2022 delivery of affordable, reliable and high quality external and inter-island transport links, underpinned by principles of decarbonisation and social inclusion. Ensure continued engagement with Scottish Government and key transport stakeholders to identify resources and further the interests of local priorities. Environmental Impact There may be environmental implications. Consultation HIAL’s retrospective ICIA was a consultative exercise with affected communities, including local authorities, trade unions and air operators, albeit a little late in terms of the overall process. BACKGROUND 5.1 In January 2018, Scottish Government approved HIAL’s intention to proceed with their Air Traffic Management Strategy (ATMS) proposals. HIAL approved the ATMS business case in October 2019 which was subsequently approved by Transport Scotland in December 2019. 5.2 The retrospective Island Communities Impact Assessment (ICIA), commissioned by Highlands and Islands Airports Limited (HIAL) and undertaken by Reference Economic Consultants was published in February 2021 and was received by the Comhairle earlier this month. 5.3 HIAL’s current Air traffic Management Strategy (ATMS) is seeking to change the way in which air traffic management is delivered for the following eight airports: • Benbecula • Dundee • Inverness • Kirkwall • Stornoway • Kirkwall • Sumburgh • Wick John O’ Groats SCOPE OF THE ISLAND COMMUNITIES IMPACT ASSESSMENT 6.1 The retrospective Island Communities Impact Assessment (ICIA) commissioned by Highlands and Islands Airports Ltd (HIAL), undertaken by Reference Economic Consultants, was published in February 2021 and received by the Comhairle earlier this month, initially through the Trade Union, Prospect. 6.2 The scope of the ICIA does not include any consideration or judgement as to whether HIAL’s ATMS proposals should proceed as planned or not, neither is it an Options Appraisal, but is instead confined to assessing the economic and community impacts of the ATMS on affected communities. In that sense, it is somewhat limited in scope and the findings could be regarded as predictable in that the ATMS will impact significantly, socially and economically, on individuals, families and the communities affected. This Report is concerned only with the social and economic impacts of the ATMS centralisation in Lewis and Uist. HIAL’s Air Traffic Management Strategy’s redacted Island Communities Impact Assessment can be viewed here. 6.3 The ICIA’s secondary research included: • a review of figures on changes in direct employment levels and salaries at each airport; • age and gender profiles; • economic and demographic profiles of the affected communities; • profile of passengers and aircraft using each of the airports; and • a review of information on potential economic benefits. 6.4 In addition, all HIAL staff were consulted on ATMS proposals via an online survey and further consultation was undertaken with affected communities, local authorities, community councils, national politicians, the Trade Union Prospect and Air Operators. SUMMARY OF ATMS PROPOSALS 7.1 ATMS essentially comprises two elements: • a move to centralised, remote air traffic control at five airports, including Stornoway, to Inverness; and • continued local airport air traffic management at two airports, including Benbecula, albeit with a change in how this is delivered. An Aerodrome Flight Information Service (AFIS) centre of excellence is proposed for Benbecula. 7.2 ATMS will introduce remote integrated ATC services for five airports including Stornoway. This will be delivered via a Combined Surveillance Centre (CSC) based in Inverness. These premises have already been purchased. There would no longer be staff controlling traffic from a tower at each of these five airports. Instead, centralised staff will remotely monitor air traffic using cameras located at each of the five airports. The transition to remote towers will require CAA (Civil Aviation Authority) approval before it can proceed. ATMS also includes the introduction of controlled airspace which Stornoway does not presently have. RATIONALE 8.1 The rationale for HIAL’s proposals can be summarised as follows: • the air traffic control industry is experiencing staff retention and recruitment challenges, presenting resilience difficulties; • ageing aircraft infrastructure requires modernisation; • adaptation to meet changing legislative and regulatory requirements within the aviation industry; and, • the organisation needs to demonstrate best value and must operate in the most efficient but effective way. 8.2 It is acknowledged that some of that rationale has been challenged by stakeholders, particularly as to the economics and in regard to staff recruitment and retention. On the latter point, as per the ICIA Report (pg.22), “ a number of consultees referred to previous recruitment rounds where local residents had been successfully recruited and trained and were still in air traffic management posts at their local airport”. 8.3 It is noted in the Report (S3/pg.iii) that “apart from airlines, almost all consultees regarding Kirkwall, Stornoway and Sumburgh were opposed to ATMS and/or concerned about the lack of detail on certain aspects of it