Alderney may pay just £2m. for a new airport

But it is likely to be repaid over time and the more the island is asked to pay, the longer the payback period is likely to be.

P&R submitted a policy letter to the States earlier this month, detailing its proposal to construct a new terminal and refurbish the airport fire station, as well as expanding the airport runway.

The full price tag had been well-trailed but has caused concern for some. Alderney has agreed to make a contribution towards the work, but how much is still to be determined.

Deputy Helyar told this week’s Scrutiny Committee public hearing that he had worked with Alderney’s treasurer to look at what it could pay. But he said there was little money available, especially following the pandemic.

‘There is very little fat in Alderney’s accounts to be able to repay a debt,’ he said.

‘So we looked at a broad range – from £2m. up to £10m. – that could be contributed, but that would have to be structured over a longer term to ensure that it was able to cope with the cash flow required to meet the repayments over that period.

‘It is possible for up to that amount to be done. But if it were the higher amount, then we’d be looking at a 20, 25-year term in order for it to be affordable.’

The report is set to go to the States in the next few weeks.

But the Guernsey Aviation Action Group, which is made up of pilots and people with aviation experience, is among those voicing concerns. It has sent an open letter to all deputies calling for them to reject it.

‘We believe the Alderney Airport Runway Rehabilitation Paper is wholly inadequate in its presentation of sufficient information and detail upon which a reasonable independent person can make a considered decision,’ it said.

It is backing just resurfacing and widening the runway.

The States of Guernsey has already approved a £12m. runway rehabilitation, and this latest policy letter looks at how the second half of the money could be acquired.

‘A significant proportion of that could be provided by Alderney, and I think the States representatives for Alderney will be commenting on that during the course of the debate,’ Deputy Helyar said.

‘We haven’t landed on a particular number because we haven’t done all the work on what the costings are.’

The 1948 agreement, which confirmed the level of fiscal and practical support Guernsey would offer to Alderney, requires Guernsey to maintain an airfield in Alderney.

‘It doesn’t require we maintain an air service,’ Deputy Helyar said.

‘There’s an important distinction between those two things. There’s an argument as to whether the airfield includes some of the ancillary services that go with it, such as maintenance of the terminal building and so on, and so we felt that some sort of contribution from Alderney in recognition that it is important for their economy.’

P&R president Peter Ferbrache said the airport work was needed.

‘Alderney’s airfield is a mess,’ Deputy Ferbrache told the Scrutiny hearing. ‘I’m surprised its lasted as long as it has. It needs great capital expenditure.’

He said that the ‘tatty’ terminal and fire service buildings needed to be replaced, regardless of the runway work.

Deputy Ferbrache said the idea of Alderney part-funding the work came from Deputy Helyar.

‘Alderney’s got to make some contribution towards it and a capital contribution, because it is a significant capital cost, and they are looking towards doing that.’