Taxpayers 'could pay' for runway
16th June 2009
Taxpayers could end up subsidising the £9bn bill for Heathrow's third runway because of the "precarious" finances of the airport's operator, an MP has said.
Hayes and Harlington MP John McDonnell was speaking amid reports on what would happen if BAA went into administration.
A government spokesman did not answer the BAA claims but insisted expansion was vital for the British economy.
Former transport secretary Geoff Hoon approved the plans for a third runway in January.
The decision provoked an angry backlash from climate campaigners and residents but airlines, business organisations, BAA and some unions welcomed the announcement.
Mr McDonnell, whose constituency includes Heathrow, highlighted a report in the Guardian newspaper which said BAA had urged ministers to revise plans that would give ministers powers over its airports if it went bust.
The Labour MP said this would mean the government footing much of the bill for the controversial expansion.
He said: "We now believe there will be direct subsidy as a result of BAA's precarious financial position and the precarious financial position of Grupo Ferrovial globally (BAA's parent company) and that we will have to actually subsidise the development itself, the construction of the runway and the terminal."
Junior transport minister Paul Clark said not building the runway would be economically disastrous.
"The fact has not changed that having a transport system is the lifeblood of Britain's economy, indeed that Heathrow is our only hub airport," he said.
"It is absolutely vital in terms of our international gateway, vital to our economy, connecting us to growth markets of the future, that has not changed."
The 7,200ft (2.2km) runway is expected to be built sometime between 2015 and 2020.
Source: BBC