MPS have criticised Cornwall Council for its plans to sell off Cornwall Airport Newquay.
Noah Law, the Labour MP for St Austell and Newquay, and Ben Maguire, the Liberal Democrat MP for North Cornwall, have condemned the unitary authority for the “flaws in the consultation, lack of transparency, and potential poor value for taxpayer money surrounding its decision”.
The two MPs, whose constituencies the airport site sits across, have urged the council to rethink the decision, which was due to go to its economic scrutiny committee on Tuesday, December 10, but has now been delayed until the new year.
Mr Law said: “I am concerned at the cost of this attempted privatisation process and the fact that it’s put multiple credible attempts to improve the profitability of the site for the Cornish taxpayer on ice.
“The quest for direct profitability for a public good that brings over £70-million of benefit to the Cornish economy each year is a worthy endeavour which will take time, regardless of the owner – private or public – however, it needn’t involve the sale of 650 acres of prime Cornish land to American venture capitalists at a knockdown price.
“It remains highly unclear as to whether the buyers want to foot the cost of the operating subsidy, rather than just bankrupting the airport as we have seen in the case of other regional airport privatisations such as Plymouth or Teeside – this smarts of an attempt to privatise the profits and socialise the losses.
“And, because of the lack of clarity around the terms of the deal, I find it very difficult to say whether this deal represents value for money for the Cornish taxpayer.
“What I do know is that any private equity investor worth its salt would expect significant discounts from sellers Cornwall Council for it to make sense for them within their short-term investment horizon.”
Prior to entering politics, Mr Law worked as a banker and financial analyst. He said: “I know what it’s like, that feeling of needing to cling onto a deal you’ve invested time in – the sunk cost fallacy.
“But experience tells me that the Tory council should cut their losses before throwing more public money at pricey advisors for another six months while they fail to deliver the basics.”
Mr Maguire has expressed his “deep concerns” over the Conservative-led council’s “under the table approach.”
He said: “There are rumours that the airport's subsidy may now be scrapped as part of the deal, threatening the airport with imminent closure.
“Without the subsidy, the airport will likely shut down - even though one of the main reasons for the council’s sale was to avoid these continued yearly payments.
“Selling off Cornwall Airport Newquay without properly consulting the public or even informing local representatives of the terms is deeply irresponsible.
“Our communities deserve transparency about the airport's future and assurances that such essential public service obligations won’t be stripped away, jeopardising jobs and connections which are vital to Cornwall’s economy.
“The airport supports hundreds of jobs, provides vital transport links, and underpins the local economy. At a time when our train network is barely fit for purpose the airport is a crucial transport link for many residents and businesses.
“I am calling on Cornwall Council to engage with MPs and the public immediately to ensure this decision serves the best interests of our constituents.”