The States ‘was wrong to buy Aurigny’
Thursday 13th November 2008, 2:29PM GMT.
THE States should never have bought Aurigny, according to former deputy chief minister Stuart Falla (pictured).
The Garenne Group chairman was yesterday asked about the loss-making airline’s future. He was speaking at a Chamber of Commerce and Young Business Group workshop for small and medium-sized businesses.
And although he considered it a mistake for the States to have agreed to purchase the airline in 2003, Mr Falla, who was in the House from 2004 to 2008 – said that now would not be the time to sell it.
‘A body such as the States of Guernsey cannot run a trading company. I came across some fantastic civil servants in the States, as well as some not so good ones, but their whole experience is not about running a company. But I would not sell it in the current climate because it has no value.’
It was revealed in last week’s 2009 Budget that Aurigny had lost more than £1m. in the first eight months of the year.
To continue trading its holding company, Cabernet Ltd, has also been forced to enter into a short-term borrowing arrangement with Royal Bank of Scotland International for up to £1.75m. until March 2009, having also hit the limit of a £4.2m. loan facility backed by the States three years ago.
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The Aurigny purchase was yet another utter disgrace in the utterly disgusting Morgan-Berry-Langlois-Torode era that ran like anarchists across good governance and procedure. In the case of Aurigny it was ram-railed through the States we’re forced to believe with thorough jurisprudence in 12 days.
Mike Torode has humbly admitted the Gsy Telecoms sale was “a mistake”. Will he fall on his sword over the shambolic purchase of Aurigny too?
Falla highlights the States are underwriting a worthless company which is leaking money – while the company is looking at buying 2 new aircraft for £36m. Get real for heavens sakes!!
It’s about time Deputies responsible for decisions (expensive mistakes) were held personally and criminally liable for serious errors of judgement and their advisers/cronies or this will continue ad neuseum with the public purse being bled and asset stripped.
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I think what needs to be remembered is that you’d be hard pushed to find any ‘low cost’ airline in this current economic climate that is making money.
Have people forgotten the reason for the states buying Aurigny…to preserve the much needed link with Gatwick.
Although I do agree with Stuart Falla that civil servants shouldn’t be responsible for running a trading company and that it should be run seperately as a business rather than another service provided by the states.
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It is now time that our real CM stepped up to the plate? Will you for the good of us all? We are desperate which we can appreciate. Can you please? Change is desperately needed by a person that knows where they are heading and why.
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The States of Guernsey should have never purchased Aurigny. Flybe operate a much more punctual and professional service. When are the States of Guernsey going to stop pouring OUR money into a loss making airline??
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Buy new Bombadiers, write it off against tax and hey presto – in the black.
Come on you people – get a grip.
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It was the right decision to purchase Aurigny and this will be seen to be the case in the long run. As a States Member at the time, I applaud the decisive actions of John Langlois and Mike Torode. I was never a huge supporter of either politician but I believe in giving credit when it is due.We now have some control of our air links and therefore some influence on prices and other factors, all of which are important to Guernsey.
If we had purchased Condor we would probably have better sea fares and schedules.
I lost my seat on the Board of Guernsey Telecoms because I very much opposed its sale. It will probably go down as one of the worst decisions made by the States ever.
I feel it is a little incorrect to say Aurigny is run by civil servants. It is run by people who have a great deal of commercial airline experience and they do a good job for us, the owners.
Thank goodness Stuart Falla at least admitted it would not be a sensible idea to sell Aurigny now. Pity we don’t have that approach in respect of States properties which are being sold at the wrong time and not good value for the taxpayers.
Tony Webber
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Yet again we’re up against that peculiar local trait.. sell off the family silver when the going gets tough.
If anything NOW is the time to keep it all intact. Because, if we don’t, this island will be left to the mercy of outside commercial enterprises who have the capability to drop us without so much as a thank you.
Memories seem to be very short, but as one who was involved in the Sealink fiasco in 1985/86 (Thatcherism at its worst), we should take a few lessons from past history.
It is now that our elected representatives should be looking to ensure our air and sea services are protected..simply because we need them to survive.
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