We Should Keep Norwich International Airport - Opposition Urge

We Should Keep Airport - Opposition Urge
Norwich Evening News, UK

November 11, 2003 11:58

THE only winners in the sell-off of Norwich International airport will be
consultants who stand to pocket more than £1 million from the deal, it has
been claimed.

Norwich City Council Labour leader Steve Morphew today criticised the way
the ruling Liberal Democrat administration had handled the sell-off, the
completion of which remains in the air.

The sell-off itself was agreed by the council last month, but the Liberal
Democrat executive is still negotiating with would-be airport buyers,
Omniport, over whether a stretch of potentially valuable land should be
included in the £11 million deal.

Council leader Ian Couzens said today the delay was necessary to ensure
the right deal was struck for the airport's future.

But Mr Morphew, who supported the sale of the airport when his Labour
administration was in power, said the council would be better off in the
long run if it hung on to the airport.

He said 200 acres of prime development land should instead be sold off to
finance investment in the airport.

"When we supported the sale in the first place, the airport finances were
a lot ropier than they are now.

"The right answer now is not so much selling off the airport, but the most
important thing is getting the future success of the airport right.

"Soon the main beneficiaries will be the consultants and the lawyers with
the councils trailing behind.

"Who knows what will happen if the deal should fail — somebody is bound
still to want paying for the work and what are the chances of the county
being prepared to pick up their share of the tab when the city reneged at
the last minute?"

The airport, jointly owned by the city and county councils, went on the
market more than 18 months ago for between £18 million and £23 million.

Within a year, the councils thought they had a buyer when TBI offered
£20.5 million for a 75 per cent controlling stake, but it pulled out at
the last minute.

Omniport made a £14.5 million offer, which was accepted by the county
council but is still being negotiated because the city council did not
want to lose the patches of potential valuable land.

Under the new offer, the county council will receive an initial sum of
£4.1 million and Norwich City Council £2.7 million, with the two councils
getting an extra £2 million if the airport is sold within 15 years.

Ernst and Young, the accountants representing the two councils in the
deal, can expect to pocket £282,000 for its advisory work and stands to
receive an additional £850,000 success fee if the sale goes through.

The latest agenda for the council's executive committee does not include
an item on the airport sell-off.

But council leader Ian Couzens said it was vital that the right package
for the city and county was reached.

He said: "I think we are close now, but we were not quite ready for the
next executive agenda. It is a trite comment by Steve Morphew. What we are
trying to do is for the long-term benefit of the city and county and a few
extra weeks to get it right are not going to be too consequential."



 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************