Councillor rules out cash support for Durham Tees Valley Airport
10.02.11
The idea of council cash being used to support Durham Tees Valley Airport has been ruled out by a leading councillor, the Evening Gazette reports. However, Councillor George Dunning, leader of Redcar and Cleveland Council, said local authorities in the area should continue to work with the airport to help drive forward the local economy.
Redcar resident Ken Bibby asked at a meeting of the council if more support could be given to the airport in view of the council investing heavily in projects that it hoped would attract visitors and business to the area. He said passenger numbers had declined over 10 years from 750,000 to 250,000. There had been an even more marked decline in cargo handling. He said millions of pounds were being spent on Redcar seafront, the Vertical Pier and The Hub to attract more visitors and businesses.
Mr Bibby said the airport was partly owned by the local authorities. Recently a £6 passenger facility charge was introduced at the airport to raise between £250,000 and £500,000. He said dividing that between the six councils with a share in the airport would have meant each contributing about £60,000 which was ‘peanuts compared to the council’s other ventures’.
Cllr Dunning said it was important to recognise Redcar and Cleveland did have a direct stake in the airport through the council's role as a shareholder, like neighbouring authorities. He added: ‘Having said that, it is also important to understand the airport is a commercial company, with most shares being held by private sector interests, notably Vancouver Airport Services. I do not believe at this time, when we are facing unprecedented pressures, we could justify diverting resources into a commercial business.’
Cllr Dunning said the airport’s shareholders had made clear the decision to introduce the passenger facility fee was seen as an important element in achieving the financial stability needed to ensure the future of the airport. He said: ‘It is important to underline that the very fact that Vancouver Airport Services, one of the most successful airport operators in the world, chose to invest in Durham Tees Valley underlines that it does have a future.'
‘The facts are that those services operating from Durham Tees Valley are doing well - Eastern Airways is showing a 25% year-on-year growth, there is increased capacity this summer with a major operator to Turkey, and Thomson has shown its faith in Durham Tees Valley by introducing new services.'
He said he believed that, both as an authority and in the council’s role through the newly-created Tees Valley Local Enterprise Partnership, it needed to work with the airport in driving forward the local economy.
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