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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

The 拢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鈥檚 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鈥擨 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鈥檚 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鈥檚 analysis is fair. Going back to Ms Tweed鈥檚 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鈥檚 operations become more profitable comes to fruition, so that Mr MacDonald鈥檚 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.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

We continue to invite people to come forward with expressions of interest. If the market is not there, the market is not there. However, the commercial position of the airport is strong. A note of interest came earlier this year, which was not followed through for the reasons that have been set out. Before Covid, there was a strong expression of interest that, were it not for the advent of Covid, probably would have seen the business return to the private sector. That demonstrates that, in my mind, I do not need to have a particular concern, as Mr Smyth seems to have, about the long-term future of the airport.

We will continue to take seriously any expressions of interest that come forward and ensure that we are able to maximise the return from an economic and financial perspective and in value for the local area. We will obviously be pragmatic in seeking to achieve as much as possible without hindering a process that can see the airport鈥檚 return to the private sector.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That is the status quo, and we do not need to shift from that. As I have said, we are not a distressed seller. The airport is in a good position, and it has good plans to continue to grow. I am not concerned at the position that we have with regard to Glasgow Prestwick airport.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That is where the consideration of the hard financial position and the wider value would come into play. I hope that Mr Fraser understands that there might need to be pragmatism in that regard, depending on what the bid looked like and on the wider factors that it took into account, such as鈥攐n Mr Smyth鈥檚 point鈥攖he wider investment that the bidder might seek to make in Glasgow Prestwick airport. However, that would be subject to discussion on a case-by-case basis. I underline that we would obviously look to realise the maximum return possible to the public purse.