Alderney Airport gets £10m. boost

PUBLIC Services is backing a 'privatisation' deal that could see up to £10m. invested over five years at Alderney Airport. In a surprise announcement yesterday, the department revealed it had held discussions with local resident Terry Holding about the public/private partnership which would eventually end the £500,000-a-year subsidy the States currently pays.

For the first time yesterday morning, Alderney representatives on the Alderney Airport working party were told about the long-term lease offer that came in just before Christmas.

'Everyone who had considered this is enthusiastic. I think the overall response is this is a proposal worthy of consideration and the opportunity of a lifetime,' said minister Bill Bell.

The department is now set to make a presentation to all Alderney States members and will hold a public meeting in the island.

'If anyone else puts their head above the parapet, we'd listen to them, but I was very surprised to receive this proposal, very pleasantly surprised, and we'll always listen to any proposal that's put forward.

'We have got a deficit of £500,000 a year on the revenue side and we have to put in a certain amount of capital expenditure. Part of the benefit of this is that will be phased out over time - that period will be determined by negotiations.'

Deputy Bell added that any deal would have built-in safeguards, such as service level agreements, to ensure Alderney's lifeline links.

'I'm sure the airlines will welcome any improvement in the facilities. 'Healthspan boss' Derek Coates recently criticised the state of Alderney Airport and I'm sure this is a proposal that would meet with his approval.'

He added that it was an opportunity that the department felt should not be missed.

Mr Holding has lived in Guernsey since 1993 and his company, HBC Ltd, concentrates on property holding, mostly in the UK.

'I think it's got enormous possibilities, but not as vast as some of the numbers that get bandied about. For me, it's got a natural limit based on the population,' he said.

'But within these parameters, it will make a good contribution to the economy of Alderney and be a very good, solid and long-term investment.'

If approved, it is envisaged that the investment would renew the terminal, create more hardstanding and provide additional hangar space and a private aircraft maintenance facility. The company plans to consult stakeholders in the airport, including Blue Island and Aurigny.

'From the day we got the go-ahead, we maintained it would be self-sufficient in five years, guaranteed.'

The business plan does not assume an increase in landing fees above what would normally be expected, but aims to increase the revenue streams by adding to them.

'New activities, new maintenance facilities, more hangarage: it's criminal there's a waiting list at Alderney Airport,' said Mr Holding's representative, Alan Fulford, of Brittain Hadley.

Alderney Policy and Finance Committee deputy chairman John Postlethwaite said the news came as a complete surprise when he arrived with Alderney representatives Richard Cox and Colonel Peter Walters.

He added that it was a very interesting opportunity for its lifeline link.

'There's always risk involved, but we're right at the beginning of the negotiating stages and we see no pitfalls at the moment,' he said.

Deputy Bell said the offer would have to be discussed by Alderney States before going to the Policy Council and then probably Guernsey's States.

'Everything that's said in Alderney States is regarded as contentious. We hope that they will see the benefits we see,' said Mr Postlethwaite.