My thoughts on election priorities? Well, you asked!
Inevitably, discussion of state transport infrastructure investment will likely be very low on the national media agenda. We will be treated to hours of debate about education, the NHS, defence, pensions etc. And BREXIT. Important, certainly, but not to the exclusion of all else.
But for me, distribution of national state-funded infrastructure spend is the issue which exercises me most. Yes, I know. That makes me odd! It has become well-known that London and the SE dominates such investment funding by order of multiples versus the regions. Yet the general public appears largely ignorant of what this means for them in reality. I have been attacked elsewhere for arguing against this inequitable distribution of state resources ... the only explanation is that I must be anti-London? No, I'm not anti-London. But I am pro all the long-neglected UK regions finally seeing their fair share of state funding for their own infrastructure priorities. On the LHR R3 issue, I was an early supporter of the case for a third runway based upon purely operational considerations. That changed abruptly the second that I heard the proposed costings for that project (when the chin hit the floor in shock). No project should be pursued at a cost many times the value of the resulting asset. Particularly when the taxpayer is on the hook for much of the investment required to support the project as well as for underwriting the core privately-funded sum.
Obviously, when we think about NW regional infrastructure initiatives which would require state-investment, attention turns first to our railways and proposals for Northern Powerhouse Rail (NPR, formerly HS3) - fair enough. And to the possibility of a transpennine tunnel facilitating travel between Sheffield / South Yorkshire and Greater Manchester / Merseyside / Cheshire. This tunnel proposal is costed at £6Bn. Sounds like a pipe-dream, but it is doable when you pause to consider that another Thames crossing was signed off by HMG for £5Bn just a couple of weeks ago. How many here were even aware of that?
I would actually like to see MAG actively bid for state-funding to enable expansion of Terminal 3 at MAN. Perhaps working in concert with the soon-to-be-elected GM Metro Mayor to this end.
How could this be justified? Well, here is the conundrum. We can argue a case that doubling the capacity of T3 would be of great economic benefit to the region. In Ryanair we have a carrier which would quite happily double its based fleet at MAN were it not capped at nine units due to the physical constraints of the building from which it operates. We also have Vueling who are considering a MAN base but whom would require T3 access. We have Flybe and others packed in there. Some use of non-based aircraft helps but cannot fully accommodate the potential latent demand. The T2 TP is a new-for-old upgrade, not especially capacity accretive. T3 is already artificially capping MAN's progress.
So, why doesn't MAG expand T3? The answer is that MAG is a private company and any business case must stand-up from the financial perspective of MAG in isolation. The land available to accommodate T3 expansion straddles a high-value subterranean utilities hub and is occupied at surface by the airport's most high-yield car park offering (covering an extensive area). In order to expand T3, MAG must pay out the direct construction costs, finance relocation of the utilities hub and forego a substantial proportion of its lucrative car parking income over the long-term. And the payback to MAG would be the fees paid by a typical ULCC (Ultra-Low Cost Carrier), ie. not much, and their cut of additional passenger-spend in the terminal. In other words, the business case for T3 expansion from MAG's perspective is bobbins. They'd make a thumping great loss on the deal. And no private enterprise will sign-up for that.
But now consider the bigger picture. Attracting an extra (say) six million passengers through T3 would be hugely beneficial to the economy of the region. Expanding T3 is a 'no-brainer' viewed from this perspective. But MAG doesn't enjoy the fruits of those benefits ... the money doesn't flow to them. They would suffer a big financial hit so that other sectors (tourism, hospitality, retail, business) can prosper. Why would they do that? Their first duty is to make profits for their shareholders, not to act as a charitable donor for the betterment of the wider NW region.
And this is where state-aid has a role to play. If MAG in conjunction with other interested parties were to put together a funding bid, government investment could take account of the wider benefits of a development such as T3 expansion to economic prosperity across the North. MAG acting in isolation can only consider its direct profit and loss account based on (low) airline charges and passenger-spend combined with loss of existing lucrative revenue streams (car parking). A business-case from Hell. A very different financial proposition to that of the broader regional interest. A substantial element of state-funded assistance invested in a project of this kind enables a private entity such as MAG to offset its own direct losses to provide a facility which will substantially benefit the region beyond. This is where taxpayer-funded state investment has a valid role to play.
Of course, this is just one example amongst many regional infrastructure proposals of merit. But as a start, I would like to see MAG and the new mayor put together a serious bid to submit to HMG for funding assistance at a national level. The SE gets one infrastructure project after another funded by the taxpayer. It's a conveyor belt. They're so well-organised in putting together their business cases and lobbying effectively. We need our new 'Metro Mayors' to bid for our share too.
I know it's a long-shot in London-centric Britain. But surely its worth a try. Taxes aren't paid by Londoners alone. They shouldn't monopolise the payback in national infrastructure terms.