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Prestwick Airport: Nicola Sturgeon outlines nearly £10m of new investment | Prestwick Airport: Nicola Sturgeon outlines nearly £10m of new investment |
(about 2 hours later) | |
Prestwick Airport is to receive nearly £10m of investment from the Scottish government, Deputy First Minister Nicola Sturgeon has announced. | Prestwick Airport is to receive nearly £10m of investment from the Scottish government, Deputy First Minister Nicola Sturgeon has announced. |
The funding will go towards operating costs, a repairs backlog and to make improvements to the terminal building. | The funding will go towards operating costs, a repairs backlog and to make improvements to the terminal building. |
Ms Sturgeon rejected calls to rename it Robert Burns Airport, saying this could cause confusion. | Ms Sturgeon rejected calls to rename it Robert Burns Airport, saying this could cause confusion. |
Labour accused of her of "keeping taxpayers in the dark" over how the money would be spent. | |
The Scottish government bought the struggling airport for £1 last year amid fears it would be forced to close. | |
Ms Sturgeon told Holyrood's infrastructure committee the airport would be operated under public ownership "on a commercial basis". | Ms Sturgeon told Holyrood's infrastructure committee the airport would be operated under public ownership "on a commercial basis". |
She said the Scottish government investment would be made "in the form of loan funding". | She said the Scottish government investment would be made "in the form of loan funding". |
She added that there was "no quick fix solution for Prestwick" and the airport may not be profitable for several years. | She added that there was "no quick fix solution for Prestwick" and the airport may not be profitable for several years. |
The airport had a pre-tax loss of £9.77m in its final full year under previous owners Infratil. | The airport had a pre-tax loss of £9.77m in its final full year under previous owners Infratil. |
Ms Sturgeon is also the Scottish government's infrastructure, investment and cities secretary. | Ms Sturgeon is also the Scottish government's infrastructure, investment and cities secretary. |
She said the airport would operate as a public corporation on a commercial basis" at arms' length from government. | She said the airport would operate as a public corporation on a commercial basis" at arms' length from government. |
She added that £5.5m had been provided already since acquisition. and the Scottish government would be required "to provide a further £3m in operating support". | She added that £5.5m had been provided already since acquisition. and the Scottish government would be required "to provide a further £3m in operating support". |
There will be nearly £7m in capital investment - £4.5m for repairs and £2.4m to make improvements to the terminal building, including refurbishment of the duty free area. | There will be nearly £7m in capital investment - £4.5m for repairs and £2.4m to make improvements to the terminal building, including refurbishment of the duty free area. |
Lack of investment | Lack of investment |
Ms Sturgeon argued that Prestwick had suffered from a lack of investment and there was a "backlog of essential maintenance". | Ms Sturgeon argued that Prestwick had suffered from a lack of investment and there was a "backlog of essential maintenance". |
The committee evidence session came after finance executive Romain Py completed a three month review of the airport, including options for ownership, on behalf of the Scottish government. | The committee evidence session came after finance executive Romain Py completed a three month review of the airport, including options for ownership, on behalf of the Scottish government. |
Ms Sturgeon described Prestwick as a "non-typical airport", with only about half of its revenue dependant on passenger traffic. | Ms Sturgeon described Prestwick as a "non-typical airport", with only about half of its revenue dependant on passenger traffic. |
She suggested that future revenue could come from freight and retail development. | She suggested that future revenue could come from freight and retail development. |
The airport's executive directors would be tasked with developing commercial opportunities. | The airport's executive directors would be tasked with developing commercial opportunities. |
A business plan would include an assessment of a reduced Ryanair schedule for summer 2014 and passenger numbers will be monitored. | A business plan would include an assessment of a reduced Ryanair schedule for summer 2014 and passenger numbers will be monitored. |
Ms Sturgeon ruled out renaming the airport after Robert Burns. A petition lodged with the Scottish Parliament by The Robert Burns World Federation earlier this year had called for a name change, with supporters arguing it would boost tourism. | Ms Sturgeon ruled out renaming the airport after Robert Burns. A petition lodged with the Scottish Parliament by The Robert Burns World Federation earlier this year had called for a name change, with supporters arguing it would boost tourism. |
The deputy first minister told the committee: "On balance I have concluded there are strong commercial reasons for retaining the Glasgow Prestwick airport name." | The deputy first minister told the committee: "On balance I have concluded there are strong commercial reasons for retaining the Glasgow Prestwick airport name." |
She acknowledged the decision would disappoint some local people but the airport had to be marketed internationally. | She acknowledged the decision would disappoint some local people but the airport had to be marketed internationally. |
She did not rule out a "Burns-related theme" for the airport. | She did not rule out a "Burns-related theme" for the airport. |
'Business case' | |
Scottish Labour's infrastructure spokesman, James Kelly, said: "Nicola Sturgeon had the opportunity today to set out the Scottish government's plans for Prestwick Airport, unfortunately she has failed to do so in any detail, and Scottish tax-payers remain in the dark. | |
"Last year Prestwick Airport was losing nearly £1 million a month. | |
"It is a nonsense that it will be close to a year since the Scottish government bought the site before a credible plan is put to the people of Scotland, especially when the Scottish government has blocked the publication of analysis they commissioned on the airport. | |
"Key information is available now, but it is being denied to the Scottish public." | |
He added: "Nicola Sturgeon should make a statement before parliament on Prestwick, and publish the business case so that taxpayers can see how £15m of public money is being invested and when the airport will return to profitability." |