‘Serious discussion’ is needed on Alderney’s financial plight
GUERNSEY is expected to have paid more than £6m. to subsidise Alderney last year as the smaller island becomes increasingly dependent, according to one deputy.
Policy & Resources member Lyndon Trott has come under fire from representatives there for suggesting recently that the Alderney-Southampton air route was not a lifeline link.
He said yesterday that the underlying driver behind the remarks was the need to stimulate a real conversation about the impact of the financial relationship between the two islands.
‘In particular, the impact on Guernsey taxpayers of the hefty subsidy they provide the people of Alderney as a result of the two air routes currently operated at a significant loss,’ said Deputy Trott.
‘About 40% of Aurigny’s flight rotations service Alderney, yet those flights move only about 10% of the airline’s total passengers.
‘Recently, Aurigny withdrew from the Guernsey to London City route, due in part to the significant losses incurred on that route. It is not always about Alderney and neither should it be. Guernsey has had to make tough decisions too.
‘It needs to be remembered that as part of the review into the financial relationship between the two islands, the States of Guernsey began recording its financial obligations, via a breakdown in our published accounts, of Alderney income and expenditure.
‘This showed the overall “deficit” in this funding position (including Aurigny’s operating loss in respect of the Alderney routes) was £2.3m. in 2015 and rose to £6m. in 2016.
‘We are still pulling together the various figures in respect of 2017. My belief is that there will have been a further deterioration in that deficit.
‘My comments, which were not meant as a slight to the people of Alderney, remain about shining a light on some very serious discussions that need to be held between the two islands.
‘There can be no denying that Alderney is increasingly dependent on Guernsey and that alone should dictate that the lifeline route is the one between the two islands. After all, it is not the residents of Hampshire that pick up the bills.
‘I am, of course, aware of the significant work my colleagues in the Committee for Economic Development are doing to progress the public service agreement on air travel, and it is important that this work feeds into the much-needed conversations about the future financial relationship.
‘However, these conversations must extend beyond air routes and acknowledge the significant and increasing financial contribution made by Guernsey taxpayers.’
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