Newcastle Airport secret deal questioned

Oct 24 2008 by Adrian Pearson, The Journal

MINISTERS face questions about the “scandal” over a secret deal between Newcastle Airport and its former boss.

Hexham MP Peter Atkinson will submit a Parliamentary question to ministers to find out their views on the out-of-court deal between the airport and ex-chief executive John Parkin and the estate of the late Lars Friis, its former finance director, over £8.5m bonus pay.

The airport was suing both parties but they came to a last-minute settlement that ended a potentially explosive High Court case.

But the deal has sparked anger because no details have been revealed, although public money is involved with seven North East councils holding stakes in the airport.

Mr Atkinson said: “It is a scandal. This is effectively money that should be accountable to the local taxpayer. It is wrong that it is not transparent.”

The move comes after Jim Cousins, Labour MP for Newcastle Central, yesterday signaled he is considering raising the issue of the secret deal in Parliament.

“We must go to the airport authorities and South Tyneside Council and if we draw a blank, we will have to come to Parliament, because there is a public interest issue,” said Mr Cousins.

City leaders are considering a review of airport scrutiny after it emerged councillors were not required to give their consent to the settlement reached this week. John Shipley, leader of Newcastle City Council, said: “Councillors will be seeking further clarification on the detail because we have genuine concerns about the use of a confidentiality agreement in this instance and would like to see the terms made widely available to the public.”

Newcastle Labour group leader Nick Forbes has already called for elected councillors to be given a greater say over any future bonus payments to airport bosses.

The growing calls for information about the deal to be released comes after a wall of silence was thrown up by the five Tyne and Wear authorities as well as Northumberland and Durham County Councils about their interests in the airport – in which they collectively hold 51% of shares.

Copenhagen Airports, which owns the other 49% share, also refused to comment.

The chain of events was set off by a 2006 deal, in which Mr Parkin oversaw the remortgaging of the airport – yielding £80m shared by the councils and Copenhagen Airports.

An airport spokeswoman has said the settlement terms “will remain confidential”.