Originally Posted by
southside bobby
It is a simple question but hopefully not too silly a one...
In simple terms where is this ultimate half a billion quid plus coming from & then where is it going?
The Council borrows the money at one rate and lends it to their airport company at a higher rate. The airport (LLAL) gets income by being a landlord and the collector of concession fees. It is then meant to keep what it needs to pay off the interest payments back to the council. It contributes to Council approved charities and pays the Council a dividend except the money has dried up.
LLAL has borrowed £225m for the Dart. £50m for its application to government for airport expansion and £19m buying a farm. Millions were spent on buying up land around the Dart station at Parkway. It also needs £60m this year and £23m next year for interest payments for its loans and a £18m overspend on the Dart plus spending on the DCO to government as part of it needs rewriting. LLAL also has outstanding loans around £40m going back many years but I have no idea what they spent it on as it is a secret.
The Council is also committed to spending over £100m on the terminal 2 access road and upgrading the A505.
Everything listed above should be spent by the existing concessionaire or the next concessionaire as they are meant to be carrying the risks but they are having none of it and want a Council funded gift.