Thursday, February 10, 2011

Private Hedge Fund Owned London City Airport Given Millions Of London Taxpayers Money

£50,000 to develop a website, £1.6million towards the construction of an additional apron...oh and £5m+ a year to pay for airport security.

In a recent Freedom of Information request to the London Development Agency it was revealed that between 2004 -2011 London City Airport received: £1,256,629.00 of London taxpayers money from the LDA alone.

This is just the tip of the iceberg of how London taxpayer public monies are 'given' to a joint private hedge fund owned airport: London City Airport.

Clearly, we are not all in it together at all. Shocking!


London Development Agency:

Greater London Authority:

Len Duval, GLA Member Lab, asked a question in City Hall in 2007 about LCY's unwillingness to even contribute towards it's own security costs - LCY continue to let London taxpayers pay 100% of their security costs.

Question number 0043/2007
Meeting date 10/10/2007
Question by Len Duvall

I am not asking you to comment on the planning application; it is more about the commercial engagement with London City Airport . Are you aware that London City Airport provides no cost towards the security of its perimeters and, in a sense, that we and part of the GLA family are subsidising them? Before you enter into commercial agreements with London City Airport or give any undertaking that security, the primacy of security around our airports and users of airports comes first and therefore that they should not be subsidised by London taxpayers, they should make a contribution like other airports; even Heathrow are cooperating in that. There seems to be a real problem with London City Airport ; they do not seem to want to even engage in a conversation about costs and they are quite adamant they are not going to pay it. Do you see that as being a part of a discussion that you may wish to have to them before you exercise any commercial deal?

Answer by Manny Lewis, LDA
Given that you have raised it, Len , absolutely, in terms of the Metropolitan Police Service position. I am not familiar with those security issues; you have alerted us to those. We need to follow those up both with the Metropolitan Police Service as well as with TfL and we will certainly now factor that in.


Article taken from the Newham Recorder but which has now been removed from the Recorder's webpage:

THE Metropolitan Police Service has spent £24 million policing London City Airport in Silvertown over the past five years, it has emerged.

The figure came to light after London Assembly Green Party member Jenny Jones tabled a question on the cost. Mayor of London Boris Johnson's written response detailed the money spent on policing in each of the last five financial years.

In 2004/05 it was £2 million, £5.5 million in 2005/06, £5.3 million in 2006/07, £5.5 million in 2007/08 and £5.6 million for the current financial year.


Parliamentary Questions:

Neill, R - Airports use of Regional Development Agency funding
Robert Neill (Conservative Communities and Local Government Minister): To ask the Minister of State, Department for Business, Innovation and Skills what payments each regional development agency has made to airports in the last 12 months; and for what purposes such payments were made in each case.

Pat McFadden (Business, Innovation and Skills Minister): The following table shows RDA payments to airports in the last 12 months.

Payments to airports in the hundreds of Thousands

This relates to preliminary costs in respect of the project to extend the main runway at Birmingham International airport.

This was a payment made as part of a £1.6 million Regional Selective Assistance (RSA) grant to London City airport. The grant was a contribution to a wider £39.8 million project to construct additional apron over the north-west corner of the George V Dock, increasing stand space and providing an extra runway link.

This is comprised of: (a) four payments to Newcastle International airport to finance route development support to Copenhagen , Bergen and Krakow, as well as the cost of hiring a meeting room; (b) three payments to Durham Tees Valley airport for route development support to Warsaw as well as gap funding for economic development at the adjacent business park.


AWM – Advantage West Midlands; LDA – London Development Agency; ONE – One North East; EEDA – East of England Development Agency; EMDA – East Midlands Development Agency; NWDA – North West Development Agency; SEEDA – South East of England Development Agency; SWRDA – South West Regional Development Agency; YF – Yorkshire Forward.