Councils should sell their Newcastle Airport
stake, to save jobs and services.
The Journal, December 5th 2012
SCATHING cuts to council services and jobs could be avoided if council leaders, including Newcastle City, sell off their stake in Newcastle Airport, it was claimed today. Conservative councillors have said the time has come for the North East’s seven local authorities get out of the airport business and offload their shares.
The councils between them, including Northumberland and Newcastle, own a 51% stake in the airport, but have also had to spend £68m to help refinance its debts. In exchange the authorities receive on average just £500,000 a year in dividends, as well as a say over bigger airport issues.
The councils’ stake in the airport has come under greater scrutiny following a high-profile court case over the legal advice which allowed a controversial former airport chief executive to walk away with a multi-million pound bonus. At the hearing, which the airport lost but is trying to appeal against, a judge made repeated references to the councils’ lack of experience in running an airport.
Now Conservatives in Sunderland have said enough is enough and called for a sale. These calls follow on from North Tyneside elected Tory mayor Linda Arkley, who has already refused to have any part in the airport refinancing.
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