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Chamber of commerce chief John Brown said scrapping the route from Newquay would ‘damage the local economy’

One of Cornwall’s most influential business figures has voiced opposition to a proposal by Cornwall Council to discontinue the publicly subsidised air route from Newquay airport to London. The council’s cabinet is set to abandon the Public Service Obligation (PSO) service at a meeting tomorrow (Friday, February 13), in an effort to save millions of pounds.

The PSO is jointly funded by Cornwall Council, which owns Cornwall Airport Newquay, and the Department for Transport (DfT). Previously, the DfT provided 66.7 per cent of the funding. Its decision to reduce its contribution to 50 per cent is placing additional financial strain on an already financially stretched Cornwall Council.

The council has disclosed that if the service continues, it will likely necessitate a taxpayer subsidy of between £14m and £16m over the next four years – with Cornish taxpayers directly footing half of that bill.

This move follows the council’s failure to attract tenders during two PSO procurement bids over the past nine months. There is now a push for it to be replaced by a commercial operation, which would be unlikely to operate as frequently as the daily PSO flight.

John Brown, chief executive of the Cornwall Chamber of Commerce, has called for caution, stating that diminishing London connectivity when Cornwall is vying for national and international investment would be an “act of self-harm”.

He is calling on Cornish firms opposed to the loss of the PSO route to contact their councillors, Cornwall’s Liberal Democrat/Independent cabinet and their MPs, requesting they lobby the DfT to rethink its reduced financial backing for the PSO.

Mr Brown said: “We understand the financial pressures – two procurement exercises failed to attract compliant tenders, the Department for Transport has cut its contribution from 66.7 per cent to 50 per cent and aviation costs have risen sharply.

“But the Chamber believes this decision carries risks that far outweigh the savings.”

He noted that the council’s own cabinet report acknowledges Newquay airport generates an estimated £100m in annual Gross Value Added to the regional economy.

“The PSO costs the council approximately £1.5m per year. That is a serious return on public investment and one that very few other council spending commitments can match.

“Businesses have consistently made clear that daily flights to and from London are of serious importance to help with talent acquisition, investment opportunities and business growth.”

‘Cornwall’s transport network cannot absorb this loss’

He continued: “What’s more, it’s important to recognise that Cornwall Council retains 100 per cent of business rates collected in the Duchy, forecast at around £270m.

“The council’s share of the funding gap between its affordability cap and the market price is around £250k-£500k per year, less than 0.2 per cent of annual business rates income. When businesses are facing rate increases of around 10 per cent in April, it is reasonable to ask whether a fraction of what is already collected could sustain a service that delivers on a key business priority – connectivity.”

Mr Brown addressed the business community: “Cornwall’s transport network cannot absorb this loss. Rail to London is chronically under-invested, expensive and frequently exceeds five hours. Recent severe weather has shown how quickly Cornwall can be cut off entirely.

“The council’s own report admits commercial operators ‘may not provide the same level of winter frequency or day-return capability’ and that ‘there is of course the risk that commercial routes and other commercialisation cannot replace the airport losses and the airport becomes unsustainable’.

“Removing another element of our transport network without a proven replacement is dangerous.”

Mr Brown described it as “disappointing” that the DfT is scaling back its support when regional connectivity ought to be a national priority.

“Cornwall is spearheading the UK’s future economy. Reducing London connectivity at precisely the moment Cornwall is competing for national and international investment would be a further act of self-harm.”

Last week, BBC News revealed that Alton Towers planned to stop automatically granting its disability queuing pass to some guests with autism, ADHD, anxiety and other non-physical disabilities, if their Nimbus access pass only indicated they struggled being in crowds.

The National Labor Relations Board (NLRB) is reportedly giving up on a multi-year legal fight with Elon Musk’s SpaceX and signaled it will refrain from bringing cases against the company in the future.

Bloomberg News reported on Monday, citing a letter from the board, that it would dismiss a case brought against SpaceX two years ago after the company fired eight engineers who were involved in an open letter that was critical of Musk.

The report cited a letter reviewed by Bloomberg that informed the attorneys of the former employees that a recent opinion issued by a separate agency, the National Mediation Board, that SpaceX engineers fell under its jurisdiction rather than the NLRB’s.

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The NLRB determined it didn’t have authority over SpaceX. (Joe Raedle/Getty Images)

Bloomberg’s report said Danielle Pierce, a regional NLRB director, wrote in the letter, “Accordingly, the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”

The NLRB’s move follows a court ruling last summer that found the labor regulator’s structure is likely illegal. The case was brought by SpaceX, though other companies joined the challenge.

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The SpaceX engineers were fired after participating in a letter critical of SpaceX CEO Elon Musk. (Chesnot/Getty Images)

Last August, the U.S. Fifth Circuit Court of Appeals based in New Orleans agreed with SpaceX and two other companies that the NLRB’s structure is likely unlawful and blocked the agency from pursuing cases against them.

The National Mediation Board (NMB) has oversight of railroad and airline companies and works to prevent strikes by labor groups across those industries, whereas the NLRB’s jurisdiction covers most other private sector employers and can resolve unfair labor practice charges.

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SpaceX founder Elon Musk recently announced the company is focusing on moon missions ahead of Mars. (Michael Gonzalez/Getty Images)

Workers at businesses covered by the NLRB have more protections for engaging in collective action to change their working conditions whether they’re members of a union or not.

By contrast, workers who are under the oversight of the NMB are covered by a different law that doesn’t afford the same degree of protection.

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Reuters contributed to this report.