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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 20 June 2025
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Displaying 1071 contributions

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Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

I will happily bring in Colin Cook again on the interrogation of that in more detail.

On masterplanning, obviously, we will be looking for investments to come off and for delivery—Mr Stewart was right to make that point about delivery—to happen. However, with nascent technology such as sustainable aviation fuel, where the infrastructure is still being put in place and the first transatlantic flight using that fuel happened only recently, it is clear that some of those investments will be risky and tricky. Some might not come off.

I think that the point that senior management made in the earlier session was that there are opportunities for the site and that some will come off, but some might not. Obviously, our job in Government is to try to support that senior management team as well as we possibly can, and to see as much of the opportunity that is before the team realised, while recognising the fact that, in a commercial world, things are not always as straightforward as delivering everything. The commercial decision needs to be applied as well as the practical decision.

I do not know whether Colin Cook has anything to add to that.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That is a fair challenge from Ms Chapman about whether we could be doing more. We have expectations of Glasgow Prestwick, and of other airports and businesses across Scotland with regard to their environmental credibility and the support that we need from them if we are to achieve our net zero objectives. The airport has demonstrated and set out quite clearly the levels of regulation that it is currently under in terms of the wider environmental impact, and it has clear decarbonisation objectives.

Whether something is mandated by us or whether it is a commercial decision that has been taken—because the airport recognises, as most businesses do, that the more sustainable businesses will be the most successful businesses in the future—it is there for colleagues to observe. The decisions that it is taking are the right ones to ensure that it supports us in meeting our objectives.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Yes, that is my understanding, and I would expect it to be the case. It is also important to set out that, since the public inquiry findings, we have published the onshore wind sector deal with developers, and they have agreed, on a voluntary basis, to have earlier negotiation and discussion to ensure the mitigation of any potential impact—in this case, on airports, but also on other communities and in other situations. That will also ensure earlier communication with communities on community development and community benefit so that there is a strategic and more creative use of community benefit finance, to ensure that communities see demonstrable benefit.

In this case, it is about ensuring that, where there is a potential development, developers have earlier conversations to ensure that a more collaborative approach is taken, so that some of the issues can be resolved before there is a need for a public inquiry—because of the delays that that poses to developers and the uncertainty that it causes to communities and businesses, it is in everyone’s interest that we come to those decisions more quickly.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That idea was contradicted by the earlier witnesses. There was a credible bid before the Covid pandemic, but it fell through because of the impact of the pandemic.

As I said in response to other questions, I want the airport to return to the commercial sector. We will not do that on just any terms; we want terms that will provide a clear future pathway for the airport and we want buyers to demonstrate that they have the finance and experience to make that a success and that there will be wider economic development for the local area. We will not sell on any terms; we want to ensure that those aims are realised and that we get the maximum possible return for the public purse as well as the maximum possible value for the Scottish economy.

I continue to encourage expressions of interest in the airport, and we will consider those in the appropriate manner.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

We should consider the current economic environment. Airports and airlines have been through more than a little turbulence, if you will pardon the pun, particularly because of the Covid pandemic but also because of the other economic shocks of recent years.

I am hopeful that there will be continued interest in the airport, but I am not concerned about that, not least because the airport is in a good financial position and one that continues to improve. We are not a distressed seller and we will look at any expressions of interest based on the current strength of the asset.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That type of work will be critically important in Ayrshire and other regions that have a critical employer area—Prestwick airport is not just one employer; there are a number of employers on the site—and a local college working together to consider and answer skills demands. It is important that they have a strong relationship in order to address any skills gaps that might exist and ensure that there is aspiration among the young people going through the college system and an understanding that they have good careers prospects in their local area. It is really important for people to feel that their home is a place where they can continue to live and have successful careers, and that they can be proud of where they live.

I am pleased that that relationship is developing. I look to support it, not least given the review by Mr Withers on what we need to do to reshape our skills agenda. I refer members to my colleague Graeme Dey’s statement earlier this week on how we are taking that forward. I am very pleased to see that interaction and relationship developing.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

We can do things around long-term activity that are contingent on the sale, but they will need to be balanced against ensuring that we secure a sale. It will obviously be in any new owner’s interests to ensure that the airport has a good relationship with the local community and that it has a positive economic story to tell about the jobs that they are creating. Having strong domestic and local supply chain networks will determine the overall success and profitability of the airport. I suspect that those will all be important considerations for a potential buyer, and we want to ensure that those areas are successful for the airport in the long term.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

They will take first consideration and contact us if there is an expression of interest, and they will give us details about what has come forward. Obviously, that is predicated on an expression of interest going to them first. If it came to the Government, we would look to assess it, as well. The first port of call is through the board and the assessment process that comes through there.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

I absolutely accept that point, and Mr MacDonald’s analysis is fair. Going back to Ms Tweed’s question, there are potential stipulations that we can put on a sale. I am not saying that that is what we are doing, but I am saying that to give assurance to Mr MacDonald. We hope that the work that the board and the management team are doing to ensure that the passenger airport’s operations become more profitable comes to fruition, so that Mr MacDonald’s fears are not realised. That will all be part of our consideration.

The other element that I wish to point out is that, although the airport is publicly owned, we do not own the airlines that operate within it. I know that Mr MacDonald understands that. The comparisons that he is making with some of the other elements are slightly different. It is about ensuring that the wider site continues to be a strategic asset and to operate in a successful manner. My team of officials and I are keen to ensure that the passenger airport also continues to improve its position.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Mr Macdonald obviously understands that the group position needs to be considered. Consideration of the passenger airport cannot be taken in isolation from the rest of the group and the income that is derived from that. I take the point, and the outstanding loan to the Scottish Government, which continues to be on commercial terms, will clearly be an issue of consideration for any potential buyer. I am not operating in the commercial world, but I suspect that the group’s overall position will make it an attractive proposition. I hope that the airport continues to develop in such a way that it becomes even more attractive in the commercial world.