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| Version 3 | Version 4 |
|---|---|
| Glasgow Prestwick Airport to be taken into public ownership | Glasgow Prestwick Airport to be taken into public ownership |
| (34 minutes later) | |
| The Scottish government has confirmed that it plans to take Glasgow Prestwick Airport into public ownership. | The Scottish government has confirmed that it plans to take Glasgow Prestwick Airport into public ownership. |
| The step was confirmed in a statement by Deputy First Minister Nicola Sturgeon in the Scottish Parliament. | The step was confirmed in a statement by Deputy First Minister Nicola Sturgeon in the Scottish Parliament. |
| The airport, which was put up for sale last March by New Zealand-based owners Infratil, has been running annual losses of £2m. | The airport, which was put up for sale last March by New Zealand-based owners Infratil, has been running annual losses of £2m. |
| Ministers will now enter detailed negotiations with Infratil on the terms of sale. | Ministers will now enter detailed negotiations with Infratil on the terms of sale. |
| Ms Sturgeon told MSPs some private investors had expressed an interest in the airport but it had become clear none was able to commit to buying Prestwick on a timescale that was acceptable to Infratil. | |
| She said the Infratil board had been considering its options, one of which was to seek commercial discussions with a view to public sector ownership and the other being to close the airport. | She said the Infratil board had been considering its options, one of which was to seek commercial discussions with a view to public sector ownership and the other being to close the airport. |
| Airport jobs | Airport jobs |
| Ms Sturgeon said ministers had "examined carefully" the implications and consequences of both options before making their decision. | Ms Sturgeon said ministers had "examined carefully" the implications and consequences of both options before making their decision. |
| She argued that the closure of Prestwick would be a "serious and unwelcome development" for the Ayrshire and the Scottish economies, with about 1,400 jobs linked directly or indirectly with the airport. | She argued that the closure of Prestwick would be a "serious and unwelcome development" for the Ayrshire and the Scottish economies, with about 1,400 jobs linked directly or indirectly with the airport. |
| She said: "We believe Prestwick Airport can have a positive future. | She said: "We believe Prestwick Airport can have a positive future. |
| "It will require investment and it will take time. However, we believe it can be returned to profitability. | "It will require investment and it will take time. However, we believe it can be returned to profitability. |
| "We also estimate that the cost of closure to the public purse would be very significant and this is an important factor in our decision." | "We also estimate that the cost of closure to the public purse would be very significant and this is an important factor in our decision." |
| 'Familiar concept' | |
| Ms Sturgeon described public ownership of airports as "a familiar concept", pointing out that the Scottish government already had responsibility for 11 airports through Highlands and Islands Airports Limited. | |
| She also argued that some other major UK airports - including Manchester, Stansted, Newcastle and Cardiff - were owned wholly or substantially by the public sector. | |
| She added: "I can therefore advise parliament that the Scottish government has advised the current owners of our intention to commence a process towards acquisition of Prestwick Airport. | She added: "I can therefore advise parliament that the Scottish government has advised the current owners of our intention to commence a process towards acquisition of Prestwick Airport. |
| "Following the agreement of its board earlier today in Shanghai, we are entering into negotiations with Infratil for the potential acquisition of Prestwick Aviation Holdings Limited and its subsidiaries. | "Following the agreement of its board earlier today in Shanghai, we are entering into negotiations with Infratil for the potential acquisition of Prestwick Aviation Holdings Limited and its subsidiaries. |
| "Conclusion of this process will, of course, be subject to the Scottish government carrying out confirmatory due diligence. | "Conclusion of this process will, of course, be subject to the Scottish government carrying out confirmatory due diligence. |
| "The terms of sale will be on a commercial basis and in accordance with the market economy investment principle." | "The terms of sale will be on a commercial basis and in accordance with the market economy investment principle." |
| 'Major money' | 'Major money' |
| She added that the government intended to complete due diligence and detailed negotiations with Infratil on the terms of sale over a six-week period. | She added that the government intended to complete due diligence and detailed negotiations with Infratil on the terms of sale over a six-week period. |
| Infratil has agreed that it will continue to ensure the airport is kept fully open and operational while the process is ongoing. | Infratil has agreed that it will continue to ensure the airport is kept fully open and operational while the process is ongoing. |
| Welcoming the announcement, Labour MP for Central Ayrshire Brian Donohoe said: "Major money is required to develop the airport which is why I have always said it should be given for a penny to a developer willing to spend the cash. | Welcoming the announcement, Labour MP for Central Ayrshire Brian Donohoe said: "Major money is required to develop the airport which is why I have always said it should be given for a penny to a developer willing to spend the cash. |
| "I hope the Scottish government did not pay much more than that." | "I hope the Scottish government did not pay much more than that." |
| Speaking to BBC Scotland, he said the airport had been "moribund" for about 10 years. | Speaking to BBC Scotland, he said the airport had been "moribund" for about 10 years. |
| "The actual income against the expenditure hasn't matched," he said. | "The actual income against the expenditure hasn't matched," he said. |
| Mr Donohoe added that, as a result, the airport's owner had not made "the necessary investment". | Mr Donohoe added that, as a result, the airport's owner had not made "the necessary investment". |