DERRY CITY AND STRABANE DISTRICT COUNCIL - CITY OF DERRY AIRPORT: SHORT TERM AND MEDIUM TERM FUNDING PROPOSAL
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DERRY CITY AND STRABANE DISTRICT COUNCIL
CITY OF DERRY AIRPORT:
SHORT TERM AND MEDIUM TERM FUNDING PROPOSAL
1|Page
Purpose of Report 1. City of Derry Airport (CoDA) plays, and needs to continue to play, a crucial role in securing accessible and affordable air connectivity for Derry~Londonderry and the wider North West City Region, as well as in enabling the delivery of the ambitious objectives and outcomes in the Strategic Growth Plan 2017-2032 for the Derry City and Strabane District Council (DCSDC) area. Figure 1: Derry~Londonderry and the North-West City Region 2. This report explains the continuing importance of CoDA and the challenging operating environment facing the Airport. It sets out the current funding arrangements for the Airport and seeks Council approval for an immediate critical short term funding proposal and also a medium term funding strategy as the basis for engagement with other key stakeholders to include the UK Government, Northern Ireland Executive and Irish Government, and to seek their support to enable CoDA to continue to fulfil its vital role in ensuring national and international connectivity for the North West cross border region. Figure 1 above shows the location of the airport in the context of the wider North West cross border region. 2|Page
Background 3. City of Derry Airport, owned by Derry City and Strabane District Council, has been operating commercially since 1978. Located 7 miles (20 minutes from the City centre) it is the main gateway to the North West of Ireland including the cross border catchment area and serves both a thriving business and tourist economy. The airport, working with Ryanair, BMI and TUI currently serves 4 destinations across the UK and Europe and from Autumn 2018 Loganair will operate from CoDA adding a 5th destination. In 2018/19 the airport will handle approximately 220,000 passengers. 4. In the absence of adequate road infrastructure in the North West the airport, given the peripheral location of the Derry~Londonderry city region, has played a key role in maintaining connectivity with the rest of the UK. The Council recognises that significant work is ongoing to upgrade the A5 route to Dublin and the A6 route to Belfast, however these are not scheduled for completion for a minimum of 5 years. The continued operation of CoDA in this minimum interim period is important to ensure regional connectivity is available to provide access for businesses to markets outside of Ireland and access for visitors to our local tourism offering to support continued growth. Strategic Context 5. The continued operation and development of CoDA sits within a wider strategic context and will deliver on priorities outlined in a number of key relevant government strategies. In relation to the draft Programme for Government Framework 2016-2021 CoDA has the potential to make a substantial and transformative contribution to the following PfG outcomes: We prosper through a strong competitive regionally balanced economy; We have more people working in better jobs; We are a confident, welcoming, outward looking society; We have created a place where people want to live and work, to visit and invest; and We connect people and opportunities through our infrastructure. In particular it contributes to a balanced regional economy by tackling regional infrastructure disparities and deficits enabling the City Region to contribute to the growth of the North West cross border region and Northern Ireland economies. 3|Page
6. The Regional Development Strategy (RDS) 2035 recognises that: “Londonderry is the focus for economic growth in the North West Region” and the need to strengthen Londonderry as the principal city of the North West and its relationship with Donegal is noted. The need to improve connectivity to enhance the movement of people, goods, energy and information between places is highlighted. It also recognises the need for efficient transport infrastructure for a successful economy and to help promote social inclusion. 7. Economy 2023 - Draft Industrial Strategy for NI gives a commitment towards rebalancing the economy, driving forward private sector growth and jobs and delivering benefits for all. It also recognises that a region’s infrastructure is both a key enabler and a driver for economic growth with investment in our infrastructure seen as being vital to provide physical and digital connectivity. It notes that this connectivity needs to be regionally balanced to ensure a level playing field of opportunity in terms of access to market and the ability to establish and grow businesses across all of NI. Of particular relevance is its commitment to invest in infrastructure to support the growth of Belfast as a regional driver and Londonderry as the driver of the North West. 8. Project Ireland 2040 – National Development Plan (NDP) 2018-2027 - recognizes the importance of the North West and the relationship between Donegal and Derry as a functioning cross border city region. Reference is made to the Fresh Start Agreement, the importance of the North West Strategic Partnership Board and the need for targeted investment in cross border economic infrastructure. Also the role of regional airports is highlighted within the NDP and continued support will be provided by Government under its Regional Airports Programme in recognition of the lack of or inadequate roads infrastructure in parts of the country. 4|Page
Strategic Inclusive Growth Plan 2017-2032
9. DCSDC’s vision is of ‘a thriving, prosperous and sustainable City and District with equality of
opportunity for all1.’ It wants to play a full part in building a strong and vibrant economy for
Derry~Londonderry and the broader North-West City Region, with thriving businesses and more
and better quality employment opportunities for all, with the region making a full contribution to
the economy of Northern Ireland as a whole.
10. In support of this vision, DCSDC launched The Inclusive Strategic Growth Plan 2017-2032 for the
district in November 2017, which sets out the way forward for all economic, social and
environmental growth and development over the next 15 years. This followed an extensive co-
design process involving over 5,000 stakeholders. By 2032, the Plan forecasts that the required
investment of £3.4bn will deliver over 15,000 new jobs, 10,000 additional people, £203m
additional wages and £1.1bn additional GVA2.
11. City of Derry Airport has a pivotal role to play in enabling this transformation and regeneration –
under its environment and regeneration pillar the Council commits to having more integrated,
sustainable and accessible transport. A key action highlighted is improved connectivity and
frequency of flights from City of Derry Airport to major business hubs as well as the development
and sustainability of the Airport. The plan recognises that a highly effective transport
infrastructure is vital for the economy and CoDA has an integral role to play in making Derry-
Londonderry and the wider North West City Region a more attractive and competitive proposition
for inward investors as well as the development and growth of the region’s tourism potential,
whilst also delivering economic and social benefits to local communities and the North-West
region as a whole. Support from government for City of Derry Airport will help the development
of new routes, improve connectivity and boost economic growth for the wider city region by
increasing access. The Airport remains an important regional gateway that plays an essential part
in the future development of the North West City Region.
1 Derry City and Strabane District’s Inclusive Strategic Growth plan 2017 - 2032
2 Derry City & Strabane District Council - Economic overview and Forecasts – UUEPC
5|PageEconomic Benefits
12. CoDA acts as a catalyst for the local and regional economy, not only by providing air connectivity
and tourism benefits, but also as a centre for employment centre in its own right. The Airport
supports the local economy by providing jobs for approximately 110 direct staff, a further 70 jobs
through indirect and induced employment and a further 200 jobs through catalytic impacts of
business productivity and tourism. It also contributes approximately £14.2 million per annum of
GVA to the Northern Ireland economy.3
Incorporation and Management of CoDA
13. The airport operated as part of Derry City Council from 1977 until 2010. Much has been done to
improve the governance and management of CoDA over recent years. In April 2010, the airport
was established as an incorporated company, CoDA Operations Ltd., separating its management
from the Council (which continues to own the Airport and is the sole shareholder). DCSDC now
owns 100% of the shares in City of Derry Airport (Operations) Limited.
14. CoDA therefore operates under its own Board, with an independent chair. The Board has
strengthened the financial and operational management of the airport through the procurement
of Regional and City Airports Management (RCAM) to manage its’ airport operations. The current
contract was procured in 2010 through an EU procurement process and runs until 31st March
2020. The services provided through this arrangement include operation of the airport on behalf
of Council, provision of expert resources (to include financial management of the airport),
ensuring the airport remains compliant with all regulations and Civil Aviation Authority licensing,
and improving the commerciality of the airport.
3Figures taken from a recent independently validated study (York Aviation). The Airport contributes £5.6 million of GVA
through the catalytic impacts of inbound tourism and business connectivity; and £8.7 million of operational GVA from
employment (direct, indirect and induced) at the Airport.
6|PageInvestment in CoDA 15. The Airport operates as a commercial venture but is currently not profitable and accordingly, the Council continues to provide financial support to CoDA in the form of an annual operational subsidy to bridge the gap between income and costs and to offset any losses. 16. The mechanism by which DCSDC provides ongoing support to the airport is generally through the purchase of additional shares (to the approximate value of the loss). The value of this investment is then written down in the accounts of the Council. Council currently provides an annual operational subsidy of £2.145m which is £1.0 million (or 32%) lower than it was in 2010. 17. In addition, DCSDC has built up a loan charge provision of £1.3 million per annum to fund capital expenditure at CoDA. Currently £1.2 million of this provision is used to service loans outstanding of £11.5 million for historic capital investment, which incrementally reduce each year as loans are repaid. Additional capital expenditure will be required at CoDA over the medium term, to continue to ensure facilities and equipment are modernised and meet required safety standards, although the required investment identified in the 5 year capital plan can be accommodated from within the existing £1.3m loan charge provision. Challenges 18. A number of significant matters have had an impact on the business success of the airport since it was incorporated in 2010 and on its ability to further reduce the annual operational subsidy required from Council. 19. The most significant factor influencing the development of City of Derry Airport (CoDA)’s route network and passenger growth has been Air Passenger Duty (APD). The current level of APD of £13, the highest level anywhere in the world, has had a major impact on the ability of the airport to grow its route network. It is worth noting that only four of the 28 European Union member states levy a form of APD, with most countries understanding the negative drag effect 7|Page
that APD has on connectivity. The Scottish Government already recognise the economic benefits that smaller regional airports provide and airports in peripheral areas of Scotland currently benefit from zero APD (as well as significant Government subsidies). A significant market distortion was caused by the Irish Government’s decision to scrap their APD entirely, with effect from 1st April 2014. 20. As a result, CoDA, and indeed all Northern Irish airports, are at a competitive disadvantage to ROI airports which have Zero APD. This is acknowledged by Tourism Ireland, the All Island Tourism body, which has seen growth in tourism numbers in the ROI significantly outstrip N. Ireland. This is largely due to a dramatic expansion of airline-routes and passenger numbers in ROI compared with Northern Ireland - with airlines selecting APD-free Dublin and regional ROI airports as their entry point to the island of Ireland, in preference to Northern Ireland’s airports. 21. CoDA’s primary operations has been by low-cost carriers, where the proportion of the ticket price taken up by APD is significant. With average net yields on routes served from CoDA being less than £40, APD at £13 is a significant proportion of the overall ticket price. Low- cost operators cannot simply add APD to their net yield price and pass this onto the customer – they have to absorb the costs, and as such the yield derived by the airline from the route would be less than £27. All airlines cite APD as a major drag on operations from Northern Ireland and CoDA in particular. 22. In addition to this, there have been significant changes in the airline industry. Compared to twenty years ago, when virtually all regional airports had their own based airline, there has been consolidation to a small number of "mega" Low Cost operators such as Ryanair and Easyjet and a small number of Regional Airl ines such as Flybe or Stobart Air. These airlines are extremely risk adverse and have consolidated into larger hubs away from smaller third tier airports. They now require significant support and risk sharing before they will contemplate new routes. 23. The Northern Ireland market as a whole is also a low yield market for airlines and this has 8|Page
been further exacerbated due to the competition between the 2 Belfast airports. Dublin and
other airports in the Republic of Ireland such as Knock have been aggressive in adding capacity and
targeting customers from Northern Ireland. As well as the non APD advantage they have also been
assisted by more direct route support incentives from the Irish Government than are currently
available to CoDA from the UK Government or the Northern Ireland Executive.
24. As a result of these challenges, it is extremely difficult for smaller regional airports like CoDA
to attract new airlines and routes and ultimately more challenging to reduce subvention.
Government intervention is critical for smaller regional airports, both in the form of funding
assistance to and reduction in tax burdens on airlines to attract new routes. As an example,
Highlands and Island Airports Limited, in addition to being APD exempt received subsidy
from the Scottish Government of £36.45m in the year to 31st March 2017- this represents a
subsidy per passenger of £21.98. Passenger numbers at these airports also showed a 15.4%
increase in the year to 31st March 2017.
Current operational position and outlook
25. Despite these challenges, CoDA currently operates scheduled flights to the following locations:-
London Stansted (BMI Regional PSO)) – x13 departures per week.
Liverpool (Ryanair) – x3 departures per week in summer increasing to 5 in
the winter
Glasgow (Ryanair) – x4 departures per week
Majorca (Thompson) – x9 week summer series.
26. Ryanair have recently announced that they will move their Scottish service from Glasgow to
Edinburgh from Winter 2018 with Loganair subsequently announcing that they will continue to
provide the Glasgow service. CoDA is forecasting to carry 220,000 passengers in 2018/19.
9|Page27. These routes have been performing well in terms of load factor with the Glasgow and Liverpool
routes currently operating at 86% and 87% load factors respectively and the BMI London PSO
route operating at 74%. For illustration, this compares to the following airlines overall load factor
performance noted below:
Ryanair: 96% (October 2017)
Easyjet: 92.5% (October 2017)
FlyBe: 72.5% (Q1 2017/18)
Loganair: 64% (2015) Note: operates PSO routes to/from Scottish islands.
BMI Regional: 54.4% (2016) Note: operates PSO route to London Stansted.
28. Connectivity and subsidy have been significantly impacted in recent years due to the challenges
noted above. In common with other small regional airports across these islands CoDA faces
ongoing operational challenges in terms of maintaining a choice of routes to provide all-important
connectivity for both “point to point” travellers as well as those seeking connectivity through a
transfer hub airport whilst also attempting to put the Airport on a more viable/sustainable
financial footing despite high fixed costs.
29. In particular, during November 2014, Ryanair withdrew its Birmingham flight from CoDA for its
own commercial reasons - the route handled in excess of 60,000 pax per annum but the Ryanair
aircraft were too large for the route and could not economically support a viable daily schedule.
In 2016, Ryanair also indicated that the company’s Stansted flight (carrying 99,000 passengers)
would be withdrawn by April 2017. Given the importance of continuing direct air connectivity to
London to the regional economy, CoDA successfully applied to the UK Department of Transport
for the route to be subsidised for two years as a PSO, lasting until May 2019. The UK Government
announced that it would provide £3.8 million to fund the route during 2017/18 and 2018/19 with
consideration being given to a further 2 years support. Following a successful procurement
exercise, this allowed a transition on the Stansted route to the new operator, BMI Regional in
May 2017 with only a one month break in the service. Over the last year this PSO has matured
into a business friendly service providing two way connectivity to and from London.
10 | P a g e30. Like all other airports, CoDA has a high fixed cost base matched to operational and regulatory
requirement that could handle significantly higher numbers of passengers. The reduction in
income associated with these changes have impacted on the subvention requirement with
Council having to provide additional one-off subsidies during these years to enable savings and
efficiency proposals to be implemented. In order to secure the UK Department of Transport
funding for the PSO route, Council have also had to make a direct 12% contribution of almost
£260k per annum. These additional one-off subsidies have been funded from Council reserves
and are not sustainable or affordable for Council going forward.
31. Subventions from Council since incorporation are as summarised in the table below:-
Year Notes Baseline rates Additional PSO match Capital loan Total
subvention one-off funding provision subvention
subvention
2010/11 3,151,794 1,300,000 4,451,794
2011/12 2,410,700 1,300,000 3,710,700
2012/13 2,301,000 1,300,000 3,601,000
2013/14 2,152,000 1,300,000 3,452,000
2014/15 2,145,000 1,300,000 3,445,000
2015/16 Cessation of 2,145,000 369,000 1,300,000 3,814,000
Birmingham
route
2016/17 Cost 2,145,000 1,300,000 3,445,000
reduction
2017/18 Cessation of 2,145,000 264,000 259,000 1,300,000 3,968,000
Ryanair
Stansted and
new PSO
2018/19 2,145,000 260,000 257,000 1,300,000 3,962,000
32. Moving forward, on the basis of existing connectivity, significant further work by the airport
management to achieve further cost savings and efficiencies have ensured that the £2.145m
subvention will be sufficient going forward from 2019/20 to cover net operating costs with no
additional one-off subvention requirements from Council.
11 | P a g e33. The critical challenge facing the airport is the funding required to renew the London PSO
services from May 2019. The total cost of the PSO is £2.1m per annum with the UK Department
of Transport currently providing 88% of this funding. It is likely that this funding will be reduced
to 50% from May 2019. Match funding of £1.05m per annum therefore needs to be secured
with urgency to enable the London route to continue beyond May 2019. Without Government
intervention, Council is not in a position to meet these costs and as such the PSO to London will
cease to operate. In addition, without London Stansted service, the airport will no longer be
sustainable beyond 2019 with subvention requirements further increasing due to the reduced
income and high fixed cost base.
Medium term vision
34. The long-term objectives of both DCSDC and the Board of CoDA are to increase the number of
destinations served by CoDA, which in turn will increase the number of passengers using the
airport, thereby reducing the operational subsidy requirement. In particular, the medium term
strategy for the airport requires the following connectivity:-
o Regular connectivity to London- currently provided through PSO support and critical
to short-term sustainability
o Regular connectivity to a key airport hub in the North of England with international
connections - not progressed due to inability to access approved funding
o Regular connectivity to Scotland - currently provided commercially
35. In the Fresh Start Agreement of November 20154, the two Governments specifically recognised
the investment needs of the North-West region. DCSDC would ask that the need for financial
4 “A Fresh Start: The Stormont Agreement and Implementation Plan”, November 2015.
12 | P a g esupport to sustain CoDA and ensure air connectivity for Derry-Londonderry and the North West
City Region is given favourable consideration in this context.
36. Political engagement in late 2016 led to agreement that the Northern Ireland Executive would
provide a CoDA-specific Route Development Fund of £2.5 million and Infrastructure Development
support funding of £4.5 million. The intention had been that the route development funding
would be used to support a Public Service Obligation (PSO) for a service to Birmingham – a key
airport hub which would provide wider international connectivity, and would be accompanied by
further support from the UK Department of Transport for the London PSO. Whilst the UK
Department of Transport funding has materialised, it has not been possible for DCSDC to access
any of Northern Ireland Executive funding since the collapse of the Northern Ireland Executive in
January 2017.
Critical immediate short-term requirement
37. In the short term the airport is seeking immediate access to the £2.5 million Route Development
Fund set aside by the NI Executive to enable the London Stansted PSO to continue after May
2019.
38. Subject to confirmation from the UK Department for Transport, the annual PSO cost (currently
£2.1m but subject to tender) would be funded on a 50/50 basis by the NI Executive and UK
Department for Transport for a further 2 year period. This proposal assumes continuity of
existing confirmed commercial routes and will provide connectivity for 220k passengers for a
further 2 year period and annual GVA to the Northern Ireland economy of £14.2m.
39. This would result in the following funding structure for the years 2019/20 and 2020/21:-
13 | P a g eDetails £ Source
Revenue subvention 2,145,000 Council
Capital subvention- 1,300,000 Council
PSO Costs – estimated subject to 2,100,000 50% DFT, 50% NI Executive
tender
Total cost £5,545,000
Passengers 215,000
GVA £14.2m
40. The overall proposed cost per passenger of £25.79 compares very favourably to other regions,
such as the Highlands and Islands Airports when APD costs are taken into account.
41. There is an urgency attached to this request, in that a tender or renegotiation process needs to
be progressed in order to ensure that the London PSO route can continue in operation beyond
May 2019. To enable this to be progressed, the required funding must be confirmed by late
August/ September 2018. Failure to do so will mean the London route will cease, the subvention
requirement will significantly increase and the airport will no longer be sustainable beyond May
2019.
Medium term proposal 2021-2026
42. Council recognises that it will not currently be possible, until Executive powers are restored, to
obtain any further commitment from the Northern Ireland Executive beyond the £2.5m route
development funding already identified. It is however important that discussions are now
advanced and developed with other key stakeholders, to include the UK Government, Northern
Ireland Executive and Irish Government, not only to maintain existing connectivity but to ensure
regular connectivity to a key airport hub in the North of England with international connections,
for at least an initial further 5 year period post 2021 whilst critical transport infrastructure (A5
14 | P a g eand A6) is progressed and completed and roads connectivity to the North West is significantly
enhanced.
43. It is estimated (subject to tender), that the additional connectivity to a key airport hub in the
North of England with international connections will require route development support of circa
£1m per annum, however, this would provide connectivity for 238,000 passengers with an
associated GVA impact per annum of £22.7m. Again, an overall medium term proposed cost per
passenger of £26.89 compares very favourably to other regions, such as the Highlands and Islands
Airports when APD costs are taken into account.
44. Given the other significant financial pressures facing Council and the City and Region growth
aspirations which require funding, it is proposed that a reduction Council subsidy beyond 2021
forms an inherent part of the medium to longer term sustainable funding discussions with
Government (s).
45. This will ensure air connectivity for the North-West City Region that includes Donegal and help
facilitate delivery of the Strategic Growth Plan priorities and secure the future development and
growth of the Airport. It will also deliver on draft PfG outcomes and RDS 2035 and Economy 2030
priorities in relation to balanced regional development particularly in relation to regional
transport and economic infrastructure.
46. Similar to the Highlands and Islands, one possible funding mechanism is the relaxation of Air
Passenger Duty for smaller regional airports in Northern Ireland. CoDA has submitted a response
to HM Treasury’s call for evidence on VAT, Air Passenger Duty and Tourism in this regard. The
current full year receipts from Air Passenger Duty (APD) from routes to CoDA are c£1.6m (both
ways, and excluding London, which is APD-free). For this relatively small sum of money the
negative effects of APD for CODA are immense. APD causes a threat to existing marginal routes;
is a barrier to developing new routes; and, as can be seen on the London route, it can lead to the
necessary replacement of key routes with PSO, at a disproportionate cost to the receipts from
APD. In fact, the imposition of APD which ultimately caused the cessation of the London
15 | P a g eCommercial service has resulted in a cost to the public purse through loss of APD and the cost of
the PSO of c£3.5mpa.
47. In the Highland and Islands case removal of ADP for the Highlands and Islands region has allowed
Inverness Airport to grow exponentially since 2001 from a base of 334k passengers to its current
levels of 829k.
Precedents
48. The Welsh Government and the Scottish Executive have been very active in providing funding for
airports and air routes which they consider essential in meeting the economic and social needs of
their respective jurisdictions. For example:
The Scottish Government bought Glasgow Prestwick Airport (GPA) for £1 in November 2013.
The airport had been incurring annual losses of £2.0 million. The Scottish Government
budgeted to loan GPA £25.2 million by end-March 2016. In FY2016-17, the Scottish
Government provided £9.6 million of funding to GPA.
In addition, in the year ended 31 March 2017, subsidies from the Scottish Government to
Highlands and Islands Airports Limited, to maintain air connectivity to a range of small
airports across the Scottish Highlands and offshore islands, totalled £36.5 million, made up of
revenue of £20.2 million and capital of £16.3 million. There are 11 airports in the Highlands
and Islands Group. In 2001 passenger numbers at Inverness airport were 343,000 and most
recent figures for year ending March 2017 show this having increased to 829,018. This has
been assisted through a London Heathrow PSO and new routes to Schiphol. Air Passenger
Duty for airports within the Highland and Islands has been abolished since 2000.
As part of the Inverness and Highland City-Region Deal, the Scottish Government and UK
Government recognised the importance of effective air access to the Highland economy and
agreed to work with the Highland Council to provide support for Inverness Airport. The
16 | P a g erationale for the support was to develop effective links nationally and internationally to grow
tourist and business journeys whilst existing links are maintained.
The Welsh Government also provide a subsidy through a PSO and operational subvention to
a terminal at Valley Airport for an Anglesey to Cardiff PSO. In 2013 this cost c£1.55m for 8,400
passengers – a cost of £184 per passenger and supported 20 jobs generating a GVA of
c£290kpa.
Through its Regional Airports Programme 2015-2019, the Irish Government provides financial
support to the regional airports in Donegal, Knock, Kerry and Waterford through a number
of schemes – including a CAPEX scheme, an OPEX scheme and a PSO Air Services scheme.
Within its National Development Plan the importance of regional airports in providing
essential connectivity is recognised particularly in the absence of adequate surface
connections.
Recommendations
49. In the short term the airport is seeking immediate access to the £2.5 million Route Development
Fund set aside by the NI Executive to enable the London Stansted PSO to continue after May
2019. There is an urgency attached to this request, in that a tender or renegotiation process needs
to be progressed in order to ensure that the London PSO route can continue in operation beyond
May 2019. To enable this to be progressed, the required funding must be confirmed by late
August/ September 2018. Failure to do so will mean the London route will cease and the airport
will no longer be sustainable beyond May 2019.
50. With regard to medium to longer term funding post 2021, it is proposed that discussions in
relation to sustainability of the Airport are advanced and developed with other key
stakeholders, to include the UK Government, Northern Ireland Executive and Irish Government,
not only to maintain existing connectivity but to ensure regular connectivity to a key airport hub
in the North of England with international connections, for at least a further 5 year period whilst
17 | P a g ecritical transport infrastructure (A5 and A6) is progressed and completed and roads connectivity
to the North West is significantly enhanced.
51. Given the other significant financial pressures facing Council and the other City and Region
growth aspirations which require funding, it is proposed that a reduction in Council subsidy
beyond 2021 forms an inherent part of the medium to longer term sustainable funding
discussions with Government (s).
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