§ Mr. Thurnhamasked the Secretary of State for Transport if he will make a statement on the proposals submitted to him by the Greater Manchester district council co-ordinating committee for the establishment of an airport company at Manchester.
§ Mr. Michael SpicerThe Government recognise the immense value of Manchester international airport to the region and the nation. For this reason they are anxious to ensure that the airport's management continues to be financially sound and commercially orientated. However, the Government do not believe that the Greater Manchester district council's proposals, as recently 393W submitted, would provide art appropriate management framework. The proposals are un-satisfactory in a number of ways, notably the following:
Services
Under the current proposals the airport company might look exclusively to Manchester city council for the supply of specialist services. The Government attach great importance to the principle that there should be a fully arm's length relationship between airport companies and local authorities. Airports should be free to seek professional and technical services from whatever source they wish.
Composition of Board
Under the current proposals the airport board might consist wholly of councillors. The Government think that the management of the airport should be represented on the board.
Private Capital
The current proposals include tight restrictions on the sale of shares. The Government wish to encourage the introduction of private capital into major local authority airports, which would be effectively debarred under the current proposals.
Asset Transfer
MCC proposes to lease airport land and buildings to the proposed company, rather than transfer the freehold. The transfer of the freehold to the airport company would strengthen the company's balance sheet and so facilitate the introduction of private capital. It would also help establish the arm's length relationship that we believe there should be between airport companies and their owner authorities.