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| Independence of Airports Commission questioned over chair's Prudential role | Independence of Airports Commission questioned over chair's Prudential role |
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| Campaigners against the expansion of Heathrow have questioned the independence of the Airports Commission after it emerged that its chairman is a board member of an insurance group which invested in property nearby months before the commission recommended construction of a third runway. | |
| While chairing the commission, Sir Howard Davies sat on the board of Prudential, which embarked on a £300m spending spree on properties around the airport in west London just as the commission prepared to deliver its long-awaited report in July. | While chairing the commission, Sir Howard Davies sat on the board of Prudential, which embarked on a £300m spending spree on properties around the airport in west London just as the commission prepared to deliver its long-awaited report in July. |
| The commission’s final report, which concluded expansion at Heathrow is the “clear and unanimous” choice and urged the government to act quickly, has reignited a fierce battle between rival airports, environmentalists and senior politicians. | The commission’s final report, which concluded expansion at Heathrow is the “clear and unanimous” choice and urged the government to act quickly, has reignited a fierce battle between rival airports, environmentalists and senior politicians. |
| FTSE-listed Prudential has a multimillion-pound portfolio of Heathrow investments through its M&G asset management business, which includes its 2013 purchase of the Hilton hotel at Terminal 5 for £21m and an earlier investment with planning permission for a large hotel close to where the proposed third runway would be built. | |
| In the two months before the Davies commission delivered its final report, Prudential’s property business made further investments in £300m of commercial property around the airport, including cargo depots and a business park a short distance from Terminal 4. | In the two months before the Davies commission delivered its final report, Prudential’s property business made further investments in £300m of commercial property around the airport, including cargo depots and a business park a short distance from Terminal 4. |
| Davies chairs Prudential’s risk committee which reviews and approves group investment policies as well as advising the board on risks in the company’s “strategic transactions and business plans”. | Davies chairs Prudential’s risk committee which reviews and approves group investment policies as well as advising the board on risks in the company’s “strategic transactions and business plans”. |
| Zac Goldsmith, the Conservative MP for Richmond Park and London mayor contender, said Davies should never have been made chairman of the commission. “News that [Davies] has also been earning hundreds of thousands of pounds from a company that has been investing heavily in Heathrow property surely puts an even greater question mark over the validity of the commission’s work,” said Goldsmith. | Zac Goldsmith, the Conservative MP for Richmond Park and London mayor contender, said Davies should never have been made chairman of the commission. “News that [Davies] has also been earning hundreds of thousands of pounds from a company that has been investing heavily in Heathrow property surely puts an even greater question mark over the validity of the commission’s work,” said Goldsmith. |
| Teddington Action Group has raised concerns about Davies and potential conflicts of interest. spokeswoman for the local residents’ campaign group claimed the links between him and Prudential undermined the impartiality and credibility of the commission’s recommendations. | Teddington Action Group has raised concerns about Davies and potential conflicts of interest. spokeswoman for the local residents’ campaign group claimed the links between him and Prudential undermined the impartiality and credibility of the commission’s recommendations. |
| “It is outrageous that somebody who is meant to be independently advising on whether there is a need for increased airport capacity has ties with a company involved in Heathrow,” she said. | “It is outrageous that somebody who is meant to be independently advising on whether there is a need for increased airport capacity has ties with a company involved in Heathrow,” she said. |
| A spokesman for the commission defended the review, saying: “The Airports Commission is content that its process has been robust and that it has acted impartially throughout.” | A spokesman for the commission defended the review, saying: “The Airports Commission is content that its process has been robust and that it has acted impartially throughout.” |
| Davies told the Guardian that the committee had “no involvement in investment decisions made by M&G funds on behalf of clients” and denied seeing “any details” of holdings by the funds. | Davies told the Guardian that the committee had “no involvement in investment decisions made by M&G funds on behalf of clients” and denied seeing “any details” of holdings by the funds. |
| A spokesman for Prudential said its board members have “no role in individual investment decisions”, but he declined to answer the Guardian’s questions concerning the motivations behind its investments at Heathrow. | A spokesman for Prudential said its board members have “no role in individual investment decisions”, but he declined to answer the Guardian’s questions concerning the motivations behind its investments at Heathrow. |
| Davies – who becomes chairman of 73% taxpayer-owned RBS in September – did not declare his financial interests in Prudential in the commission’s register of interests, including shares and more than £370,000 in fees received while chairing the body. | Davies – who becomes chairman of 73% taxpayer-owned RBS in September – did not declare his financial interests in Prudential in the commission’s register of interests, including shares and more than £370,000 in fees received while chairing the body. |
| The commission required Davies to declare financial interests in companies “dealt with” by the commission. In a document published in June, he declared smaller shareholdings in British Airways parent company IAG and aircraft engine maker Rolls-Royce, which he had sold off in 2013. | The commission required Davies to declare financial interests in companies “dealt with” by the commission. In a document published in June, he declared smaller shareholdings in British Airways parent company IAG and aircraft engine maker Rolls-Royce, which he had sold off in 2013. |
| Davies said his position at Prudential was in the public domain and published on the Airport Commission’s website along with roles he held at Morgan Stanley and a New York-based hedge fund. | Davies said his position at Prudential was in the public domain and published on the Airport Commission’s website along with roles he held at Morgan Stanley and a New York-based hedge fund. |