Alderney Representatives Alex Snowden and Edward Hill have tabled an amendment to raise the Public Service Obligation payment from £1.5m. to £1.864m., which they say is a £300,000 increase in real terms.
When the PSO was introduced in 2021 it set a target subsidy of £2m. a year.
Had that kept pace with inflation, it would stand at about £2.65m. next year.
But the previous States cut the subsidy to £1.5m. and turned it from a target into a fixed limit. The two representatives say this has driven large fare increases and undermined the resilience of the service.
‘It constrains the ability to provide the additional operational resources required to ensure that sufficient crew are available to operate a reliable service,’ they said.
‘Cancellations can result in missed appointments, additional accommodation costs, lost business and considerable uncertainty for passengers.’
They point out that the Alderney Chamber of Commerce has voiced frustration with the current service, warning that disruption is hurting existing businesses and making it harder to attract investment. Continued uncertainty, they say, risks damaging business confidence and holding back the island’s economy.
The extra money could pay for two more sets of crew or other measures to make the Alderney routes more resilient. Crew availability has been a significant factor in flight disruption this year. It would also cover the cost of hiring in aircraft, crew, maintenance and insurance if needed while new crew are recruited and trained.
The pair argue that the increase should be seen as an investment in the whole Bailiwick, as Guernsey and Alderney are in fiscal union.
‘A stronger and more sustainable Alderney economy supports the wider Bailiwick’s economic prosperity and contributes to the long-term financial wellbeing of Guernsey and Alderney,’ they said.
‘Alderney cannot be expected to thrive if its essential air links cannot be relied on.’
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