Memorandum submitted by The Londonderry
Chamber of Commerce
The Londonderry Chamber of Commerce has recently
received the attached communication from the Northern Ireland
Chamber of Commerce and Industry (NICCI) on the above subject.
I should like to point out that NICCI is not
a representative body of Chambers of Commerce in Northern Ireland,
if your objective has been to solicit views on the above subject
from Chambers of Commerce here. It is in fact a stand-alone Chamber,
based in Belfast. While it is the largest of the Chambers of Commerce
in Northern Ireland and may claim membership across the province,
it is regarded by many, to all intents and purposes as the Belfast
Chamber of Commerce. A number of Chambers of Commerce will of
course be members of NICCI.
The Londonderry Chamber of Commerce (LCC) is
the second largest Chamber here, and also has membership from
across Northern Ireland, and indeed from the Republic. It prides
itself for the information, advice and guidance which it offers
to its members, but also for the extensive lobbying undertaken
on their behalf. It is well regarded by Ministers and senior officials
for the work that it does, and is undoubtedly one of the pre-eminent
Chambers of Commerce in Ireland.
I feel it is important to bring this matter
to your attention, as City of Derry Airport (CODA) is the smallest
of the three airports located in Northern Ireland. NICCI, being
Belfast based, could conceivably adopt a Belfast-centric position,
particularly since both Belfast airports are members of NICCI,
and CODA is not. I should also point out that political parties
across Northern Ireland have supported CODA and its plans for
development, reinforcing the benefits of the project for the region.
THE DEVELOPMENT
OF CAPACITY
AT CITY
OF DERRY
AIRPORT
Prominent amongst LCC current activity is participation
in a Steering Group established recently at the instigation of
the Secretary of State for Northern Ireland to consider the case
for a new strategic development framework for CODA. The Steering
Group comprises senior officials from several government departments,
senior local authority officers and the Londonderry Chamber.
Ownership of CODA has remained with Derry City
Council for the last 20 years or so, and it has generally operated
in deficit. While I understand that some UK and Dublin government
funding may have been made available in the past, it is acknowledged
that the deficit is largely funded by the ratepayers of the Derry
City Council area. Neighbouring local authorities do not make
a contribution towards the costs of operating CODA.
Derry City Council has recently stated that
it is not in a position to sustain this continuing loss indefinitely,
and the current exercise will obviously consider the commercial
position of CODA as well as its value to the region. The objective
of the owners is to sustain existing routes, encourage the development
of new ones while creating a longer term business strategy for
CODA going forward.
Several new routes have been established in
recent years and the growth in passenger numbers is quite impressive.
As well as scheduled services to GB and to Dublin, CODA services
a growing number of holiday destinations. The catchment area for
those using the airport—either coming or going—covers
a large part of Northern Ireland, as well as the north west of
the Republic. Most importantly, CODA is recognised as an important
tool in the drive to improve social and economic conditions in
the North West sub region, where tourism in particular is a sector
for which significant growth is predicted.
PERIPHERAL REGION
While CODA is of course located in Northern
Ireland, it is very close to the border with the Republic. This
must create difficultly for UK finance and treasury Officials
given that they would find it difficult to place value on benefits
which might accrue to that part of the North West region which
lies beyond Northern Ireland. This particular difficulty will
constrain any consideration of access issues for the area. It
is obvious therefore, as would be the case for with any peripheral
region which is divided by an international boundary, that innovative
arrangements involving each government need to be developed to
allow this important piece of infrastructure serving this important
sub region to be developed in a way which optimises the opportunity
for the whole region. These new arrangements then need to be supported
from within each jurisdiction.
ROUTE DEVELOPMENT
A Route Development Fund has recently been adopted
in Northern Ireland, and similar funds have been in operation
in the Republic for some time. In the north west, we have more
experience of the Dublin-CODA flight route which is supported
in this way. This flight operates twice daily and is well used
by business and leisure travellers. Past initiatives to develop
this route, which operated without intervention, failed. This
route is now growing and we see evidence that the NW region is
opening up to various types of travellers who would be unlikely
to visit or invest in the North West without air access. While
County Donegal residents, and visitors to that part of Ireland,
constitute a substantial share of passengers on this route, Londonderry
is also deriving economic benefit through the presence in the
city of major recent investments from the Republic, including
two new 4 star hotels. This trend of investment from the Republic
will undoubtedly grow with the availability of this route. Dublin
of course is also an international hub airport.
Without route development support providing
the catalyst, development of the obvious opportunity which this
route presents would not happen.
OTHER
It is anticipated that, if an appropriate case
is established for a revised development framework (supported
by the UK and Dublin governments) CODA can begin implementation
of the first phase of its plans quite quickly. One thing that
this Chamber and many others is quite clear about is that the
current owners do not have the skills and resources required for
the strategic development of CODA. Derry City Council has recently
declared a completely open mind about future governance arrangements
for the operation of the airport, which is promising.
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