Government tenders £3m banking adviser on Heathrow third runway finances
The Department for Transport is seeking a banking adviser, at about £3m over three years, on the financeability of a Heathrow third runway and the taxpayer's exposure. A Guardian columnist argues the project should be stopped.
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The story, neutrally told
Centre · 1The Department for Transport has put out a tender to hire an "experienced banking adviser" for at least £3 million to advise on the strength of the case for, and financing of, a third runway at Heathrow. Evening StandardN “Bankers are being recruited by the Government for at least £3 million to advise on the strength of the economic case for a third runway at Heathrow.” Read at Evening Standard ↗ Centre · 1The tender seeks advice on financeability, affordability and risk allocation, investor confidence, debt and equity market appetite, delivery structures and "Government exposure to programme costs and risks". Evening StandardN “Government exposure to programme costs and risks” Read at Evening Standard ↗ Centre · 1The contract would run for three years at around £3 million, with an option to extend for one more year, and the adviser would deliver a strategic financeability assessment every six months. Evening StandardN “The contract for the new banking adviser, who will be required to deliver a strategic financeability assessment every six months, is for three years at a cost of around £3 milion” Read at Evening Standard ↗
Centre · 1The tender says expansion "presents significant financing, affordability, delivery and regulatory challenges", and the Evening Standard reports that ministers have admitted taxpayers could be left footing a bill for the roughly £49 billion project. Evening StandardN “expansion presents significant financing, affordability, delivery and regulatory challenges” Read at Evening Standard ↗ Centre · 1A DfT spokesperson said the department is procuring an expert financial adviser to help move forward with a framework that delivers a third runway affordably. Evening StandardN “We are procuring an expert financial adviser to support the Government in moving forward with a framework for Heathrow expansion that delivers a third runway affordably.” Read at Evening Standard ↗ Centre · 1The Standard says the move raised eyebrows because Chancellor John Healey had backed the scheme, saying last month the go-ahead was given "because the economic case stacks up"; it adds that new Prime Minister Andy Burnham refused five times in an interview to back it. Evening StandardN “We have given the go-ahead to this project quite simply because the economic case stacks up and will help bring growth.”“New Prime Minister Andy Burnham has also raised doubts about the third runway, refusing five times to back it during a recent interview.” Read at Evening Standard ↗
Centre · 1Twickenham MP Munira Wilson said it "beggars belief" that the Government is only now investigating whether taxpayers' money is at risk; London Mayor Sadiq Khan strongly opposes the runway. Evening StandardN “It beggars belief that Government is only now investigating whether taxpayers' money is at risk thanks to its support for Heathrow expansion.” Read at Evening Standard ↗ Centre · 1Heathrow and the previous government argued the runway could boost the economy by tens of billions of pounds, while critics say the sums are flawed and cite pollution, noise and climate targets; the government's climate advisers have said there is "no credible pathway" for it within current policies. Evening StandardN “But critics say their sums are flawed and in fact the economic benefit would be limited”“no credible pathway” Read at Evening Standard ↗ Left · 1In the Guardian, columnist Simon Jenkins argues the runway is a "bottomless money pit" that will not promote growth, saying the budget could exceed £100bn with an unknown share falling on taxpayers and the opening date slipping from 2035 to 2039. The GuardianLC “the overall budget for Heathrow’s expansion and operating expenditure could soar beyond £100bn. An unknown proportion of this will fall on the taxpayer.”“A date of 2035 has now become 2039.” Read at The Guardian ↗
Left · 1Jenkins disputes Heathrow's claims of 100,000 jobs and cargo importance, compares the project to HS2 and Hinkley Point, and urges expanding Gatwick and Stansted instead. The GuardianLC “Heathrow claims its new runway will create 100,000 jobs.”“a simple alternative lies in growing Gatwick and Stansted” Read at The Guardian ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left1 outlet
- Framing
- Opinion column arguing the runway is a wasteful, taxpayer-funded project benefiting foreign owners.
- Emphasis
- Cost escalation, delays, comparison with HS2 and Hinkley, alternatives at Gatwick and Stansted.
- Leaves out or plays down
- Does not mention the DfT banking tender.
- Charged language
- “bottomless money pit”“nightmare”“white elephants”
- For example
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“The third runway is a nightmare.” — The Guardian
Centre1 outlet
- Framing
- News report on the tender, stressing the tension between ministers' backing and the need for financial advice on taxpayer risk.
- Emphasis
- Tender details, cost, Healey's earlier backing, Burnham's doubts, critics' quotes.
- Leaves out or plays down
- Little on supporters' economic arguments beyond a brief mention.
- Charged language
- “controversial plan”
- For example
-
“The move has raised eyebrows given that Chancellor John Healey has already given the £49 billion airport development strong backing” — Evening Standard
Right0 outlets
No right outlet in our sources has covered this story yet.
What every side reports
- The Heathrow third runway has an official estimated cost of £49 billion.
- Taxpayers may bear part of the cost.
Simon Jenkins person
Argues the third runway will not promote growth, will cost taxpayers billions and should be stopped in favour of expanding Gatwick and Stansted.
“It won’t promote growth, will take decades and will swallow up billions of taxpayers’ money.” — The Guardian
Left1 article
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The GuardianLC · · Opinion
Heathrow’s third runway is a bottomless money pit. Stop it now | Simon Jenkins
Critical Opinion piece calling the runway a costly mistake and urging it be stopped.
Centre1 article
-
Bankers being hired for £3m to tell Government if economic case for Heathrow third runway stacks up
Mixed Straight news report highlighting the apparent contradiction between ministerial backing and the commissioning of financial advice.
Right0 articles
No coverage yet.
- 8 Oct 08:18 First Evening StandardN Bankers being hired for £3m to tell Government if economic case for Heathrow third runway stacks up
- 9 Oct 11:45 +27h 27m The GuardianLC Heathrow’s third runway is a bottomless money pit. Stop it now | Simon Jenkins Opinion
Times are when each article was published, or when we first saw it if the outlet gave no time.