Tuesday 30 July 2013

The Waterville Relocation: Brand New Start in Eastern Kings Versus 14 Wing Greenwood



 
Preliminary estimates place the sharing of runways at 14 Wing Greenwood as the cheap option for the relocation of the County of Kings’ municipal airport at Waterville.  But, the old adage “you get what you pay for” holds very true in this instance.

 

The professional report commissioned by the Province of Nova Scotia shows, and almost argues for, an additional investment up front to create a brand new “greenfield” airport in order to reap the economic dividends that only this option truly holds. If councillors go “greenfield” versus greenwood when they choose a new site for their airport there will be significant advantages: 

·       The opportunity to create the type of industry-based, local air service that a municipality of our size deserves;

·       Willingness of investors to create an airpark and related businesses. And, most importantly;

·       A close proximity to the Halifax market that will place the initial government investment at much less risk and minimize or eliminate the need for ongoing, longer term support from the taxpayer.

 
Council has received a policy statement from the owner-operators of the hangars, aircraft and/or businesses at Waterville.  It calls for a location east of the current airport. In other words a location that is about an hour’s drive from Halifax and where the county has more residential and business density.  It’s the issue of proximity to markets that marks the difference between a recreational airport and one that will support rural economic development.

 
Council has a decision to make. To date, the Government of Nova Scotia’s only go forward commitment, endorsed by council, is to communicate with the Wing 14 Greenwood Commander to explore the feasibility of a municipal airport using infrastructure at Greenwood.  That letter has been sent. With the industry’s policy statement now in hand that letter seems ill-fated. The industry says the location is wrong. No-one can approximate the timeline for a response from Greenwood but it’s unlikely to be soon and delay could be fatal to any favourable outcome.

 
Michelin deserves an immediate answer and timeline about acquiring the Waterville airport lands. Until then it can't bid on any expansion to its production. The longer we wait the more likely new jobs will be allocated to other locations.  The airport industry needs answers soon too. Dozens of operators have millions of dollars invested at Waterville and the current state of uncertainty is putting a halt to any new investment and undermining any equity owners have there.  Michelin needs government action. So too do the smaller businesses at the Waterville Airport. 

 
It all adds up to the province making a sound investment in Michelin’s potential expansion and the proper relocation of the municipal airport. Council will need to negotiate a deal that strengthens its airport and protects the investment Kings County taxpayers have made in its development.  A relocation to Greenwood is not that deal.  More than one location east of the current airport has been identified.  Moving forward with the best greenfield site will help us secure the needed location in time to attract new jobs not only through Michelin, the giant among Nova Scotia employers, but through the small businesses that are so crucial to rural economies like ours.

 
In January the Government of Nova Scotia invested $8.9 M in a partnership with Michelin to create 50 jobs.  There are currently 19 jobs at our airport each with an uncertain future and the fallout that entails.  A hundred jobs create about $1 Million annually in taxes related to salaries and wages.*

 
Everyone wants to facilitate Michelin’s potential expansion.  But we can’t lose sight of the real and urgent needs of small businesses at the airport and the steady employment they created. Our province directly benefits from each job created and losses when a pink slip is delivered. With diligence and foresight we can create a stronger economic outlook for Michelin and the airport.  It's time to seize the day and make a sound investment.

 
*(Industrial Expansion Fund http://www.gov.ns.ca/econ/ief/IEFreport/docs/IEF_Report_2010.pdf)