by Julian Ruck
It seems that Carwyn Jones now fancies himself as a latter day Biggles, without the goggles.
Allow me to give you yet another classic example of Welsh Labour’s fantasy economics.
On the 27th March 2013, the Welsh Government announced it had purchased Cardiff International Airport Ltd from TBI Ltd as a going concern for £52,000,000, claiming that technically, this was not a “nationalisation” as TBI was a “willing seller” and not being compelled to flog the asset – a bit of Carwyn’s legal training here if you ask me, semantic gymnastics at its best.
First minister Carwyn further announced,” The airport will not be operated by the Welsh government. It will be managed at arm’s length from government on a commercial basis and over time, I expect to see a return to the public purse on the investment.”
The £34,311,000 valuation in 2010 (calculated as shareholders funds minus intangible assets) – the accounts of Cardiff international airport filed with Companies House in 2011, showed a £319,000 loss – seemed to have passed Carwyn by, he was probably too busy with his tailor trying to work out what colour robes to wear at his next druidical extravaganza.
For the record, the chief executive of Cardiff’s main rival, Bristol airport, one Robert Sinclair, observed that the £52,000,000 paid was “well above market value when compared to recent transactions involving UK airports – it gives us concern that ongoing government involvement and support is highly likely.”
