Alderney’s plan for prosperity hinges on airport debate

THIS week, 38 deputies and two Alderney representatives in the Guernsey States of Deliberation will make a major decision affecting the future of Alderney.

They will weigh up the arguments for and against the rejuvenation of the island’s tired old airport and its broken runway.

Three years ago the previous administration set aside £12m. to resurface the existing runway but that was held up while the experts took a second look and agreed that this was the perfect opportunity to find a little extra funding and extend the runway at the same time.

The arguments for and against have raged for months and understandably have revolved around the perceived costs. My argument, economically speaking, is the ‘cost’ of not grasping this opportunity.

We are not just talking about Alderney’s future prospects, but the Bailiwick’s as a whole.

Of course, we are committed to developing plans and working actively to strengthen and develop our island’s fragile and somewhat variable economy, come what may. We want to build resilience and to grow the tax take and other forms of joint government revenues to make Alderney more economically and fiscally sustainable.

This is all to the benefit of both Guernsey and Alderney.

And to do this, Alderney needs air services that will boost the island’s attractiveness for residency, economic activity and inward investment. Currently we have a patched-up runway with an ancient terminal that was temporary when it was constructed in 1968, and limited scheduled flights. Hardly attractive to anyone thinking of moving here or to those looking for business or work opportunities.

An extended runway providing in the region of 20,000 extra passengers a year would be a significant economic enabler for our fragile economy and enhance growth in fiscal revenues for the Bailiwick through further business expansion. It would also make for easier connectivity with family members which today’s services at peak times are unable to provide and comes as a bonus to the C+ option, not an integral part.

An important aspect of this will be generating more jobs and creating the conditions to attract and retain younger people to the island, thus reducing the island’s ageing demographic and dependency ratio. Additional seats using larger aircraft on the Alderney-Guernsey route would make commuting possible, enabling Alderney to take some of the property and population pressures off Guernsey by accommodating more people.

Complementary not competitive

We believe that it is possible to develop Alderney’s economy in ways that are entirely complementary – and not competitive – to Guernsey’s economy. To achieve this, we are seeking to work with the Guernsey Economic Development Committee which, with its wider and deeper experience and resources in this area, would strengthen Alderney’s economy to the fiscal benefit of both islands.

It will only be possible to build a robust and resilient economy on Alderney if our gateway to Guernsey, the other islands, the UK and beyond are modernised and future-proofed in an increasingly fast-changing world.

We have already put in place the process of elevating our own Economic Development Committee with its own mandate as a full committee with decision-making powers to work harmoniously with Guernsey in this respect.

This ‘working together’ approach will effectively shape the economy of the island, embracing immigration, population, employment, industry, tourism and e-commerce and to develop our economic plan. Part of EDC’s mandate is to secure the provision of air and sea passenger transport links to and from Alderney to sustain economic prosperity.

Island plan

We have adopted an island plan which identifies the need to increase our working population, reduce our dependency ratio and increase our productivity in terms of economic measures and wider positive effects to the Bailiwick, for example through the development of skills and human capital.

The island plan’s overall aim is to ensure that we maximise our prosperity and resilience, and in so doing become a more sustainable island with excellent accessibility, a vibrant economy, and a happy, healthy community which values and protects its unique heritage and natural environment.

To do this, we need an airport that is a genuine gateway fit for the 21st century.

At the risk of repeating myself, the proposition being put before the States of Deliberation is the most important piece of infrastructure for Alderney since the breakwater in the 19th century. It really is that important to us – and, we believe, to the whole Bailiwick.

Value to the Bailiwick

The option known as C+ – an extended runway with upgraded terminal and fire station – provides the best opportunity for Alderney to grow with a more resilient level of service and extra passenger capacity.

The lesser option of resurfacing the existing runway provides no more than we have today and I fear that after 2025, if the PSO is removed or is provided only for an inter-island commuter service, passenger numbers will drop and contribute to a decline in Alderney’s economy and increasing costs for the Bailiwick.

As my colleagues on Guernsey’s Policy & Resources Committee have commented, the C+ runway is essential for the future of the island by enabling us to attract people and businesses while reducing the Bailiwick subsidy by a considerable margin.

Thus the Bailiwick would save money in the medium and long-term while increasing the exchequer’s tax-take – an attractive prospect.

Our plans for the future

Alderney has proved its entrepreneurial spirit in the past and with the right tools will do so again. The eGambling industry we pioneered has contributed millions annually to the Bailiwick, including almost £2m. in personal income tax and social security contributions in the past three years.

Today, we have plans to develop Alderney as a test bed for ‘clean and green’ initiatives towards a low-pollution, low-emission world in which natural resources are sustainably managed and conserved to improve livelihoods. We want to establish lasting improvements in education, housing and healthcare provision which are all essential ingredients – along with transport connectivity – if we are to develop our business and social community towards prosperity and personal fulfilment.

As an island, we have to ensure continuity of connectivity including up-to-date medevac provision and the Southampton route, and we are clear that the runway extension is the correct way forward to future-proof Alderney in uncertain times.

To achieve this prosperous future, Alderney needs an airport and every airport needs a runway. The extension option known as C+ offers the best value to the Bailiwick taxpayer and would leverage all of the opportunities I’ve covered here, and more.

That’s why we have committed up to £3.5m. for this option. It’s that important to us as the States of Alderney and, we believe, to the majority of islanders, of all ages, and the business community.

The moment we have a decision by the States of Deliberation – whichever option is agreed – we will know how this crucial part of the jigsaw fits as part of our plan for prosperity.