'Lose Gatwick and finance will go too'

THE finance industry could leave Guernsey within a month if air links to London were lost, according to an influential report.

And if Flybe pulled its flights to Gatwick it would cost the island's economy around £80m. over 30 years, the Policy Council has been told.

Leading consultants York Aviation met industry representatives as it examined whether the runway needed extending.

'What was made clear throughout consultations is that many firms in the financial services sector could withdraw in a very short timescale (less than a month was quoted) if they find that air service provision does not meet their needs,' said York Aviation.

Directors warned that poor quality air links, particularly to London, could make trading in Guernsey too difficult in comparison with other locations.

'It was stated firmly that organisations would be quick to react by relocating to other jurisdictions offering similar tax benefits but with easier access to global markets,' said York Aviation.

'In our experience, it is unusual for company directors to be so explicit about the importance of air access to London but this is reflective of the specific needs of an island economy.'

In 2007, the finance sector accounted for more than a quarter of all employment in the island.

Chamber of Commerce president Paul Luxon said the Gatwick link was critical.