Thursday, February 05, 2009

LCAs Broken Promises, and Pork Pies: JOBS

In the London City Airport application to increase flights to 73,000 submitted on the 2nd of June 1998, the employment section still makes mind boggling reading....

"Regeneration and Partnerships do expect considerable job growth if the number of air services is extended as suggested - the economic impact study estimates that if the full increase in ATMs is allowed airport related employment will rise from 1,140 in 1997 to 4,275 in 2005 , an increase of over 3000 jobs.The point is taken that because of the need for high provision of services , estimates of employment growth at airports in Britain have tended to materialise.

We would however question the assumption that the use of additional new technology will not restrain this growth and there will be no diminishing returns as the airport expands.
The projection of 4,275 jobs may prove too high an estimate.However if , say , 1500 - 2000 or more jobs were created , even as a conservative estimate , this would represent a very welcome boost for the borough"

In the current application the airport claims 1866 jobs. And if the application goes through they claim to create another 1000.

But in 10 years from the 1998 application job figure of 1140 to the current 1866 the airport has created 726 jobs!! So what happened to the projected 4275? They haven't even hit HALF of the most conservative estimate of 1500!!!!!

An increase of 36,000 flights actually created 726 jobs over a DECADE. Now they plan to increase flights by 40,000 and create 957 jobs by 2010.


Even at best case scenario and on history and current figures it would take 13 YEARS.

Then we have 328 employees on-site who are not required to provide address information as they are employed by control authorities such as the Metropolitan Police, Special Branch, HM Immigration and HM Revenue and Customs.In layman's terms its the tax payer who is paying for these jobs. So are we paying for half the jobs created?

Then we have Cityjet paying in Euros and the jobs going through Ireland. How many are there? Are they included in the 726?

From a projection of 4275 to only 726. So Even in the best case scenario and with only 29% of these jobs going to Newham , the airport has created 210 Newham jobs over a decade, of which just over 120 are direct employment at the airport.

So 210 jobs times the Newham average wage of £27,600 totals £5.7 million a year. Funnily enough just about the same as the annual security bill. But we suspect that the majority of those jobs receive far from near the average salary, even Newham's.