It costs Cornish taxpayers almost £10 million a year to run Newquay airport. That figure was revealed yesterday, Wednesday August 19, at an extraordinary Cornwall Council meeting called to discuss how the loss-making airport can be operated more efficiently.
The council's cabinet member for economic regeneration told the meeting: "We can be under no illusion that council taxpayers cannot be expected to find anything like £9-£10 million a year because most of them don't use the airport."
Councillors discussed the commercialisation and development of Cornwall Newquay Airport after an independent efficiency review. The review aimed to "strengthen governance, improve commercial performance, increase operational flexibility and enhance financial discipline" at the airport, which is unlikely ever to run at a profit.
The Steer report, commissioned by the council which owns the airport, includes 71 recommendations for change. These are based on four "core pillars" listed at the end of the story.
During the sustainable growth scrutiny committee, several councillors said the way the airport and its estate are run should be made simpler because it has led to "confusion". Currently, Cornwall Council, Cornwall Airport Ltd (CAL), Corserv (the council's company overseeing CAL) and Treveth (another council-owned company overseeing development of the estate's land) are all involved in governance, operations and future plans.
Corserv and CAL will present a transformation plan to the council in December. Paul Cooper, Corserv's director of resources, said £3.6 million of efficiencies and "productivity gains" have already been planned, some included in the Steer report recommendations. "The next iteration in December is to grow that £3.6m to a bigger number."
Independent councillor Andrew Mitchell, who has long questioned public spending on the airport, said: "Looking at the report in the whole, I think it sounds a lot like business as usual. Where is the reorganisation structure that should come from a review like this? We've had two years where month upon month passenger figures have declined. We have overnight, it appears to me, required to jump from a £5 million a year subsidy to £10 million a year. It appears to me that we have no credit control at Newquay
Newquay Airport’s £10m Annual Cost Prompts Council Review