News / HIAL to find £4million in savings
THE INTRODUCTION of car parking charges at island airports at Sumburgh, Kirkwall and Stornoway appear more than likely after it emerged that airport operator Highlands and Islands Airport Limited (HIAL) have to find savings of £4 million.
HIAL proposed to charge for using its carparks as one way of generating extra income in order to fill a £1 million hole in its budget.
But following Thursday’s publication of the government’s independent budget review, the state owned company will now have to find four times the amount.
In 2009/10, HIAL received a £19.5 million revenue subsidy from the Scottish government, an amount that is likely to be chopped by between 10 and 20 per cent, next year.
Speaking after a HIAL board meeting on Friday, its chairman Grenville Johnston said the board decided to postpone a decision on the car parking charges to allow them to discuss the emerging financial constraints during a special meeting in September, due to be held in Shetland.
The proposal to introduce car parking charges has sparked outrage in the island communities potentially affected the move, as islanders see their air travel very much as lifeline services.
On Friday Mr Johnston declined to be drawn on whether it was now inevitable that such charges would be introduced.
“We are faced with a huge budget reduction next year, so what are our options, what can we do? he asked.
“We clearly want to persuade everybody involved that we can’t identify savings of that amount because we have a huge infrastructure that we have to have for safety and security,” he added.
Mr Johnston reacted with some disbelief to suggestions by Shetland and Orkney MSPs Tavish Scott and Liam McArthur, made earlier this week, that HIAL should reduce security at its airports in order to save money.
He said: “They have to think seriously about what it is they are suggesting there. Who is going to take the risk on that one?
“We are governed by the rules and regulations of the Department for Trade. The rules are not set by the Scottish Parliament but by the UK government.”
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