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Alderney's representatives in the States of Guernsey have been reminded of the fact that they both previously supported plans to reduce the subsidy paid to Aurigny for operating flights between the island and Guernsey and Southampton.
In December 2022, when the States of Guernsey were debating plans to spend tens of millions of pounds on redeveloping Alderney's airport and runway, it was also agreed that Policy and Resources should renegotiate the Public Service Obligation contract with Aurigny "with a view to reducing the current level of subsidy payable under the contract by the States of Guernsey with effect from 1st January 2024".
That States resolution came back to bite in Alderney last week, when P&R announced an immediate reduction in the subsidy being paid - equalling a £5 per passenger increase on all commercial air fares between the two islands. Plans to further reduce the subsidy through another fare increase are also due to come in on 1 January 2025.
Guernsey's senior political committee said the subsidy for this year was heading towards £600,000 over the £2m target for this year. That target is reduced to £1.5m. next year.
Alderney States Member, Steve Roberts had touched on the reduced PSO budget during his statement updating the States of Guernsey on the work of the States of Alderney over the past year.
He said any savings that can be found through the PSO - and other economic advancements - are intrinsically linked to the work updating the island's airport.
"The States of Alderney was naturally disappointed about the outcome of the tender process of the project but continues to do all it can to support the project locally," he said.
Pictured: Projected costs for the planned work on Alderney's airport and runway came in £13m above the maximum budget.
"We are concerned that time is of the essence with an end-of-life runway. Work on the runway rehabilitation project must continue at speed and we are looking forward to a workable future-proofed solution as soon as possible. This is particularly pertinent since the decision to reduce the PSO budget provision. We are of the opinion that savings to the PSO cannot be delivered until the runway rehabilitation is complete, and it is inappropriate to further impact our residents, businesses and visitors in this way."
After this statement had been given, Deputy Lyndon Trott was among those asking questions.
The P&R President asked Mr Roberts if he remembered voting for the amendment, in December 2022, which has led to the PSO subsidy reduction.
Mr Roberts hit back that "it didn't have a £500,000 cut in it" when he voted for it.
Fellow States of Alderney Representative, Alex Snowdon later turned the tables on Deputy Trott, asking him what impact assessment had been carried out before the fare increases were imposed, as a result of the subsidy reductions, and whether a drop in footfall was considered a concern.
Deputy Trott explained why in his opinion the assessment of the impact was proportionate to the level of savings being achieved.
Mr Snowdon also pushed him on reducing the subsidy by £500,000 reiterating that the Alderney representatives were not expecting such cuts when they voted in favour of the amendment directing P&R to reduce the funding for the PSO.
Deputy Trott hit back, saying that P&R has done as it was directed by the States and rather than facing criticism, it should be "lauded".
"...this is an ongoing problem, in my view, with the way Alderney engages with its community, trying to blame everything on a few individuals in the States, despite the fact, as we learned earlier, that both both the Alderney Representatives in this Assembly voted to direct the Policy and Resources Committee to liaise directly with Aurigny in order to bring down the PSO contract. That is what we have done. Far from being criticised, we should have been lauded."
Deputy Peter Roffey backed the Alderney States Members, asking if the plans to reduce the PSO subsidy was linked with the airport redevelopment offering means to make those savings.
Deputy Trott refuted that.
"No, I do not accept that, and I shall once again read the amendment that was supported by 30 members of this assembly, including the President of the States' Trading Supervisory Board that said to direct the Policy and Resources Committee to seek to renegotiate the current Alderney Public Service Obligation contract with Aurigny really with a view to reducing the current level of subsidy payable under the contract by the States of Guernsey, with effect from 1 January 2024 that is what we were directed to do.
"In addition to that, there was an explanatory note that came with the amendment, which made clear that there was to be a distinction, a separation between any future development of Alderney Airport and this direction from this assembly."
Deputy Trott also reiterated again, that P&R has simply done what it was directed to do.
"It beggars belief that there could be any criticism when the direction is as explicit as contained within this amendment, supported by 30 members of this assembly."
"That is going to have major, major repercussions"
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