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Manston Airport negotiations crash as RiverOak accuses Thanet Council leader of stalling

By: Chris Pragnell

Published: 13:00, 11 October 2015

Negotiations over Manston Airport’s future have hit rock bottom with investors accusing Thanet council’s leader of “throwing roadblocks in front of us”.

US firm RiverOak is offering to partner with the local authority to buy and run the airport.

It needs Thanet District Council to serve a Compulsory Purchase Order (CPO) on the site’s current owners, who want to redevelop it for business and residential use.

Manston Airport

But council leader Chris Wells is now demanding further assurances that RiverOak has necessary funders lined up to buy the airport and pay for its operation.

Before being voted into office in May, Ukip’s Cllr Wells had promised his electorate he would fight to get the airport up and running.

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RiverOak has now lost patience and broken its silence, accusing Cllr Wells of “inexplicably throwing one roadblock after another in front of us”.

In a letter to Cllr Wells, Chief investment officer George Yerrall writes: “You were elected on an extremely strong mandate to launch a CPO with RiverOak and you claimed before you were elected that you had reviewed the Indemnity Agreement and had no basic issues with it.

“Here we are, six months later and you send me what amounts to a legal opinion, under your own signature, that is filled with factual inaccuracies and irrelevancies that attempt to rewind the process back to zero in the name of ‘progress’.”

The terminal

Cllr Wells has already faced calls to resign after being accused of stalling the process by members of the Save Manston Airport campaign group.

Chairman Dr Beau Webber wrote: “If you cannot find the courage of your pre-election convictions and sign this indemnity agreement to protect the council, we ask you to step aside.

Cllr Wells had retaliated in uncompromising language, challenging the campaign group to “crowd source” to act as guarantors for a CPO.

“You claim it is safe...so what can dedicated campaigners do to relieve the perceived risk to the council taxpayer?” he said.

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“Why not use the strength in numbers....[to] crowd fund it as guarantors? 9000 guarantors, supporting the indemnity partner at £1,000 each could create a guarantor cushion of£9m. As you constantly tell us, there is no risk, it’s a risk free win-win.”

The spat had followed an announcement by the council and RiverOak last month that for 30 days, any news on progress over the CPO would be made jointly.

Protestors outside the airfield

Since then Cllr Wells has written to RiverOak reiterating his concerns about the arrangement and asking for further financial guarantees to be put in place.

His eight point letter suggests suitable guarantees could include a bond or surety scheme arranged by RiverOak.

RiverOak has run its response to his letter on its website, breaking their agreed silence.

Mr Yerrall writes: “I find your list of eight issues to be completely without merit and nothing more than another attempt to inexplicably throw one road block after another in front of us in order for you to carry out whatever your real agenda might be.

“Whatever it is, that agenda does not appear to recognize the will of your constituents, which is that Manston Airport be opened and operating at the earliest possible moment.”

The latest development will be met with delight by campaigners keen to see the airport closed permanently.

Mr Yerrall later writes: “I am convinced that you have no interest in partnering with RiverOak as an Indemnity Partner on a CPO.”

However, in parting words which may come as consolation to the Save Manston Airport group, Mr Yerrall says: “We’re still here and we are ready to execute our Indemnity Agreement, immediately. We hope to move forward in a more open and transparent process.”

Runway One Zero

Dr Webber told KentOnline today that the developments were not a total surprise and accused the council of creating a smokescreen to avoid pursuing a partnership with Riveroak.

"Chris Wells seems to be creating his own version of what the CPO process is and has not involved his cabinet in discussions and he does not want to go ahead with it," he said.

"The council has £2million in hand [from RiverOak] to run the CPO, that is quite enough to try it...the taxpayer is in no way liable once the indemnity partnership is in place."

The issue is expected to come under the spotlight this Thursday when Thanet council has a full council meeting.

With a majority of just one, the Ukip administration could in theory be at risk but it would seem unlikely that it could be voted out of office.

South Thanet MP Craig Mackinlay said: "I find it absolutely staggering that there has been no progress at all and I can understand RiverOak's frustration.

"This is wholly in the hands of Chris Wells and if he does not come up with something very quickly, I would say his days are numbered."

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