Might be worth repeating an earlier post - from the Northern Echo in early 2003 (my underlining):
Quote:
Peel Holdings are believed to have offered to pay £500,000 for 75 per cent of the shares owned by the five local authorities who own Teesside Airport. It will also contribute £100,000 towards the costs of doing the deal. The report says the cost of transferring the airport could be as high as £500,000 - meaning the authorities may end up receiving £100,000 between them. Following the sale, Hartlepool, Middlesbrough, Stockton, Redcar and Cleveland and Durham county/Darlington councils will retain a 25 per cent share in the airport, which will eventually fall to 12 per cent. A statement from the five shareholding councils said "In reality it will result in a massive investment, running into many millions of pounds over the next five years. As was made clear by the shareholders, when the choice of Peel Airports as the 'preferred bidder' to become a strategic partner in the airport was announced in January, they believe that this is the most viable option for securing the levels of investment needed for the key projects which will enable the airport to maximise its own potential - and contribute to the regeneration of the communities its serves. The interest of the shareholders in negotiating the agreement with Peel is to maximise investment in the long-term future of the airport - not to generate short-term returns for themselves."
John Williams, the leader of Darlington Borough Council, said Peel had a good track record, having already turned around the fortunes of Liverpool Airport. He said the deal was the only way forward. "Anyone who uses the airport can see that it urgently needs major investment, The £20m private sector investment will give Teesside Airport a future. Without this, it will be stuck in a cycle of decline which will eventually lead to its closure."
Councillor David Walsh, leader of Redcar and Cleveland Borough Council, and a member of airport committee, said: "In the present situation, it is the only way the airport can get in the investment that it needs to prosper and grow. It has to be a calculated risk. There was no way that the local authorities would have the money at their disposal to turn it into an airport fit for the coming decades. But we are getting £20m from Peel, who are to remodel the terminal and apron, providing more slots for aircraft, and attracting retailers into the departure lounge. This money will go hand in hand with cash from One NorthEast which is going into the infrastructure and providing better access to the airport."
Hugh Lang, airport managing director, said the Peel development would provide everything the public sector cannot fund - such as buildings and land - and provide long-term investment. "We are trying to identify areas of investment so that we can hit the ground running as soon as everything is signed." he said. A spokesman from Peel Airports said: "We totally endorse the statement of the shareholders." The company has promised to refurbish the main terminal building and construct a new parallel taxiway for aircraft serving a cargo depot. It will also work with One NorthEast to create a 400,000 sq ft business park on a 25-acre site, complete with its own access road, and has said it would be happy to offer each of the local authority shareholders a seat on the airport's board.
So it is clear why it was sold to Peel - promise of investment which the councils couldn't afford. It would seem a legitimate question as to was the £20m investment made and on what, and if not - why not?