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A potential privatisation scandal is underway in the South West, as Cornwall Council plans to effectively give away 650 acres of publicly owned land as part of a planned sell-off of Newquay Airport.
An audio recording of a secret council meeting about selling the airport has been leaked, which suggests a deal, codenamed “Operation Corduroy,” is underway to privatise Newquay Airport by December 31. The council-owned site is the main commercial airport for Cornwall.
On August 1, the local authority announced they’d started an “exclusivity period” to negotiate with a potential commercial partner to run and manage the Cornwall Airport Newquay and the land around it.
It is the latest in a wave of sell-offs happening across England, often without much scrutiny or public fanfare.
The sale would come just months before the May 2025 council elections in the county, which could see the Conservatives routed from office.
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MPs Oppose ‘Fire Sale’
The land giveaway is controversial, as the proposed deal involves a so-called “Special Purpose Vehicle” company taking 90% ownership, with taxpayers retaining 10%.
Cornwall Council would effectively give away the 650-acre airport estate in the deal, to offload the £4.5m annual cost it incurs running it.
The new partners want a legal charge over the land to secure loans for future development, according to local outlet Cornwall Reports.
Cornwall Council’s Chief Executive Kate Kennally suggested using so-called “super pink” papers to hide confidential information on the deal from public sight, and proposed a guarded reading room for sensitive documents, the outlet reported.
Conservative cabinet members, councillors Louis Gardner and David Harris, are understood to be leading the privatisation efforts for Conrwall Newquay Airport.
But the decision is opposed by every Cornwall MP. Lib Dem MP for St Ives Andrew George told Byline Times: “Fundamentally, I’m opposed to any public sector fire sales involving loss of control of freehold at this time. The present administration would I fear use capital receipts to plug revenue shortfalls. [That[ would make such a move a double felony.”
All six Cornish MPs have written to the council to call for full transparency over the fire sale, and a rethink, in a joint Labour-Lib Dem letter.
St Austell and Newquay Labour MP Noah Law added: “Myself and the other Cornish MPs have made calls for transparency around the process and for ourselves and the public to have ample time to study whether this is the right deal for the public – who are are the ultimate beneficial owners of the Airport site and the 650 acres of prime Cornish land which surround it currently.”
The potential buyers are Adynaton Asset Management LLP, described as “specialist asset managers” of airports in the UK and mainland Europe.
‘Lack of Scrutiny’
In July, Cornwall Reports noted that the council’s top lawyer rejected a bid to allow more extensive scrutiny of the privatisation plans for Cornwall Newquay Airport.
The council claims scrutiny is premature as no specific proposals have been accepted, only a “preferred investment partner” identified.
A so-called “land utilisation blueprint” for the airport is being prepared but won’t be made public until mid-September, Byline Times understands. The public would then have two weeks to review the plans before they are discussed by the council’s cabinet on 1 October.
Negotiations for the sell-off would conclude on 31 October, according to reports.
Cornwall Council’s Conservative-run cabinet is reportedly expected to unilaterally agree to hand over the airport to a new Joint Venture, despite calls for a full council debate.
The Cornwall Chamber of Commerce disputes the council’s claim there has been adequate consultation, stating there has been zero consultation with the business community.
The plans also lack cross-party support. As many as 25 councillors signed a recent request to “call in” the privatisation project for more extensive council scrutiny.
Newquay Green Party councillor Kate Larsen, who has been partially briefed on the plans, said: “I’m not personally a fan of airport expansion, but certainly the land should be better utilised and we shouldn’t lose money off the airport.
“I’d rather they just charged a frequent flyer surcharge, and then put the funds raised into improving the train station, trains, and bus connections…Something needs to be done about the airport. But with a lot more transparency.”
Cornwall Council portfolio holder for the economy, Councillor Louis Gardner, said earlier this month that this is the “next step in a very rigorous process and means an exciting opportunity to introduce potential significant new funding into the Cornish economy, provide the long-term economic stimulus that the area needs and ensure value for money for Cornish residents, comes a step closer.”
The Cornwall Newquay Airport area is a so-called ‘enterprise zone’, guaranteeing tax breaks to firms operating within it.
Cat Hobbs, director of pro-public ownership group We Own It, said the airport sell-off and land giveaway was “disgraceful”.
“The airport and the land belong to the public. You don’t just hand them over to private developers with only two weeks of consultation.”
Cornwall Council must think again. Public ownership creates tons of options to manage the site for public benefit of people in Cornwall. Privatisation is a one time thing – once it’s gone it’s gone. Selling off this valuable asset would be a huge mistake
Cat Hobbs, We Own It
Councils facing bankruptcy and financial shortfalls, following cuts of around 50% to their budgets from central Government since 2010, have led to a wave of recent sell-offs. Byline Times will be publishing more examples shortly.
Readers are encouraged to send in examples of under-reported sell-offs near them to josiah@bylinetimes.com
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