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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 4 May 2021
  6. Current session: 13 May 2021 to 18 March 2026
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Displaying 1194 contributions

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Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

I do not disagree with Mr Smyth’s question. However, the evidence from panel members this morning suggested that that is not an issue that they are facing or concerned about. We continue to have discussions with them about the work that they are looking to do and the opportunities that they are looking to realise, and we continue to support them in any way possible to ensure that those opportunities are realised.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Yes.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

I thank Ms Tweed for that question, because it sets out a key consideration of our strategic assets—that of cost and value. The cost outlay that has been made to ensure that there is a financial return for the taxpayer is an important consideration that has a bearing on our decision on the overall value.

Along with the chair and the chief executive, Mr Cook and I have set out the wider economic value of the airport, and that the airport site is a hub for supporting economic activity in the Ayrshire regional economic partnership area. It is critical that any decision that we take maximises the hard financial value for taxpayers’ investment, but it must also consider the economic impact on the region in terms of jobs and new business opportunities.

A number of considerations will be taken, should there be further expressions of interest in acquiring the airport, as I hope there will be.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

The £11 million valuation of the loan is subject to change. A revaluation of the airport is under way. I cannot pre-empt that but, if there is a more favourable financial position, the value of the loan on the Government’s books and the expectation of any return to be realised will change too.

We want to see the loan being returned as quickly as possible and we have set out that expectation to the current management and the board.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

As soon as we possibly can.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Potentially—I would not rule that out. It clearly depends on the expressions of interest that come forward. The previous panel set out some of those that have come through down the years. As I said in my opening statement, we are not a distressed seller. The airport is an asset. It is profitable, doing incredibly well and having a positive impact on the local economy. That said, our strategy and overall objective is to return the airport to the commercial sector, but we will do so only when the time and the deal are right for the public purse and the local area.

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.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

To be clear, the strategic asset is not just the passenger airport but the wider site.

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

That is a separate consideration when we decide on a planning application. I hope that Mr Whittle will respect that.