To ask the Scottish Executive what progress has been made on the policy and financial management review of Highlands and Islands Airports Ltd.
Following a tender exercise in May 2008, Quayle Munro (QM) was chosen to conduct the Policy and Financial Management Review (PFMR) of HIAL.
QM was tasked to consider the following:
the best future delivery model for the functions currently carried out by HIAL;
company performance since 1999;
the internal structures of HIAL;
the government/HIAL working relationship, and
working relations with other stakeholders.
A joint HIAL/Scottish Government Steering Group was formed to guide the Review and the work of QM. QM''s final report was presented to the Scottish Government in April 2009 and a copy has been provided to the Scottish Parliament''s Information Centre (Bib number 52068).
The most significant conclusions from QM''s work were that:
HIAL''s current status as a public corporation is best in moving forward on the basis that it affords the Scottish Government an appropriate and cost effective level of control over air service provision in the Highlands and Islands;
the company should be afforded more flexibility on certain pay and staffing matters;
a review of operating costs, subsidy levels and potentially categorisation should be conducted for Wick and Campbeltown Airports;
the potential for operational efficiencies at Scatsta and Sumburgh Airports should be reviewed, and
consideration should be given to HIAL bringing Highlands and Islands local authority owned airports into the group.
For the reasons provided by QM, we agree with the conclusion that HIAL should remain a Public Corporation.
On more flexibility for the company on pay policy, we agree that this would be a reasonable consideration for the company and whilst it would be free to present a business case, it should be clarified that ministers are not minded at this point to remove from public sector pay policy rules those Scottish public bodies which they currently apply to.
Ministers remain committed to Wick and Campbeltown having appropriate transport connections. Whilst it is appropriate for HIAL to consider costs, subsidy levels and value for money at these airports, ministers believe that when considering the remoteness of the areas they serve and the lengthy surface connections which are often involved, their mainland status should not be a factor in any analysis or decisions taken.
The Scottish Government''s full response to the conclusions in QM''s report has been provided to the Scottish Parliament Information Centre (Bib. number 52068).
We will now draw up an action plan in consultation with HIAL covering those conclusions agreed.