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Airports

Cornwall Council Abandons Controversial Airport Plan, Aims to Reduce Subsidy Costs

Strategic Insights

— 1 min read

The Liberal Democrat and Independent coalition cabinet in Cornwall Council has rejected the previous Tory administration's plan to hand control of Newquay Airport to an American firm, dubbed Project Corduroy. Councillor Tim Dwelly, the Independent member for economic generation and investment, stated that the council wants to ensure the long-term survival of the airport and its land, which it owns, by attempting to reduce the subsidy paid by Cornish taxpayers. This subsidy currently stands at around £4 million a year.

Key Takeaways:

  • The council has abandoned Project Corduroy, which aimed to hand control of the airport to an American firm, and instead plans to reduce the subsidy costs of the airport, which currently stands at around £4 million a year.
  • Councillor Tim Dwelly emphasized that the previous administration's years-long focus on Project Corduroy were "wasted" and that the proposal to hand control of the airport to a private equity investor from California was not viable.
  • The council plans to make the airport "profit-making and no-cost [to taxpayers]" through close scrutiny of its arm's-length company Corserv and quarterly reports for all councillors.
  • Corserv would oversee the development of the airport estate, and the council aims to reduce the cost of the subsidy, but acknowledges that it's not easy to have an airport in Cornwall.
  • 23 businesses are currently interested in setting up on the airport estate, including hotels, business parks, and delivery centers.
  • The council aims to strengthen ties with the Ministry of Defence and explore the possibility of installing more solar power on the airport site.

Statistics:

  • £4 million: The current annual subsidy paid by Cornish taxpayers to keep the airport running.
  • £1 million: The amount spent by the previous administration on consultants for Project Corduroy.
  • £23: The number of businesses currently interested in setting up on the airport estate.
  • £600,000: The annual income generated by the solar array already installed on the airport site.
  • 6: The months' worth of income generated by the solar array in the given time frame.

Sources:

  • Cornwall Live
  • Cornwall Council

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