Senedd members pressed officials about Cardiff Airport’s performance and the Welsh Government plans for a £206m taxpayer-funded subsidy.

Natasha Asghar, a Conservative member of the Senedd’s public accounts committee, quizzed officials about the ten-year subsidy plan which was announced in July.

Andrew Slade, the Welsh Government’s director general for economy, said the Welsh Government is waiting to hear back from the Competition and Markets Authority (CMA).

He confirmed advice from the CMA about compliance with subsidy rules will not be binding.

Ms Asghar pointed out that Bristol Airport is investing £400m over five years and, unlike in Cardiff, it will not cost the public purse a penny.

Mr Slade replied that more than 80% of world airports are publicly owned, stressing that it is incumbent on the Welsh Government as owners to put similar investment in place.

‘In the dark’

Asked if a breakdown of the £206m will be given once the CMA publishes its report, he said the Welsh Government will be able to share more – subject to commercial confidentiality.

Ms Asghar said: “The Welsh Government has received and approved 15 capital expenditure requests of between £50,000 to £1m to date from the airport, totalling £4.6m.

“And three that were requested above £1m, totalling £13m, from a total pre-approved budget of approximately £29m ring fenced until March 2026.”

The shadow transport secretary called for greater transparency, saying: “Quite frankly, that’s a lot of money going to certain things that we are absolutely in the dark about.”

Mr Slade said officials would write to the committee with a summary.

Ms Asghar concluded: “I don’t see the public making a profit from the airport … but I hope you’ll be able to fill me with some confidence because as it stands I don’t have much of it.”

Labour’s Rhianon Passmore asked about progress three years into a five-year rescue plan.

Mr Slade said: “The airport’s still with us, doing well, has had a good summer and I would argue that the rescue and restructuring plan has been successful.”

Referring to industry uncertainty created by the pandemic, Spencer Birns, chief executive of Cardiff Airport, said the plan was critical to rebuilding.

He told the committee an assessment, carried out by professional services firm Grant Thornton, estimated the airport generates £200m of economic value.

Mr Birns said at least 4,000 people are employed in the region on the back of the airport.

He said the airport, which has seen seven per cent growth so far in 2024, is short of targets because it has not been able to replace carriers quickly enough.

Mr Birns explained there is a shortage of aircraft and crews, leading airlines to focus on bigger market opportunities first.

Islwyn MS Ms Passmore said the airport held about £50m in March 2023 but has yet to meet conditions for around £30m of the government grants.

Mr Birns said the airport has been keeping cash for compliance and capital investment.

Wayne Harvey, chair of the airport’s operating company, told the committee the airport has £600,000 – of the £42.6m rescue package – left to draw down.