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Chamber and committees

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 16 August 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

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

With regard to the diversity of income that comes from the airport site, military flights and military income have been a factor for Prestwick airport for quite a considerable time—that has been a feature since the 1930s. That on-going diversity is, as Mr MacDonald’s questioning of senior management demonstrated, incredibly important to ensure the interrelationship between the physical airport, the passenger element, the military element and the wider business operation, which includes other businesses being located on the site.

To answer Mr Stewart’s question directly, there is, of course, on-going scrutiny and the on-going involvement of me and Colin Cook and his team. We have people observing on the operational board on a regular basis. To respond again to Mr Fraser’s question, the creation of SCAD has enhanced our scrutiny as it allows us to have an overview of the way in which all our assets—not just Glasgow Prestwick airport—operate, to ensure that we are stretching them in what they seek to develop through the site.

We have spoken about the opportunities that exist for the spaceport, the advent of sustainable aviation fuel and Prestwick airport’s strategic importance in the delivery of aviation fuel across the network. We need to ensure—as we are—that people continue to pedal fast so that the continued development happens at pace and the opportunities that they have before them are realised.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

It is clear that we expect a commitment to ensuring continued passenger activity at the airport.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

We set up SCAD on the back of an Audit Scotland recommendation to ensure that we effectively manage the strategic assets that are under our ownership. That has meant that there is greater involvement of senior officials in the operations of those businesses, and a close working relationship. As I reiterated to the convener, day-to-day operational decisions are commercial matters, but, clearly, having a close working relationship on strategic direction is very important. From a more practical, day-to-day perspective, I believe that there has been an improvement in the way in which we operate with our strategic assets. Colin Cook may wish to comment further.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

My senior officials, led by Colin Cook, have regular engagement with the airport. We sit on the operations board and have responsibility, as set out in the management statement, for strategy for the airport. We have close involvement, but day-to-day operational decisions are commercial matters for the management and board.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

I would be happy to do that. My understanding is as was set out in the earlier evidence session, but I am happy to seek further confirmation of that from UK ministers.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Again, earlier this morning, panel members contradicted the point that Mr Smyth is making. They said that the finance that they currently have available is sufficient for the work that they are seeking to undertake. There is nothing to prevent them from coming to us with a bid for finance or from going to the market to seek it, if that is required.

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.