St Helena

Lord Jones of Cheltenham Excerpts

Wednesday 9th July 2014 Grand Committee

[Lord Jones of Cheltenham (LD)]

My Lords, I, too, congratulate my noble friend on securing this important and timely debate. Last month, a ceremony was held at the airport site in St Helena to mark the construction of the airport terminal building. His Excellency the Governor of St Helena opened the ceremony with a speech to the invited guests. In his speech the governor praised the airport construction company, Basil Read, for the marvellous work it is doing. He said:

“Over the past two years when asked about the biggest challenges of my job I have always said that the least of my concerns was construction of the airport. Why? Because it was clear from early on that Deon de Jager and Basil Read were up to the job”.

Other speeches by St Helena officials also praised the airport construction company, Basil Read, and the company’s island director, Deon de Jager, for keeping the project to schedule, budget and specification. It is reassuring to know that the St Helena airport project is proceeding to its completion without any problems serious enough to cause significant delays. That is good news; it is a government project which is not overrunning on cost or timescale.

Our Government were right to decide to build the airport. Currently, St Helena has an odd sort of society made up of grandparents and grandchildren, with the intermediate generation earning a living off-island because there is next to no economy on St Helena. In 2016, there will be the prospect of a tourism industry that may eventually lead to the island becoming self-supporting economically, which will save the British taxpayer tens of millions of pounds each year.

St Helena has many attractions for tourists, some of which we have heard about already. They include Napoleon’s Longwood House, which is a little bit of France on a UK island; 1,100 shipwrecks; spectacular birds and abundant varieties of fish; endemic species of flora—I understand that it is hoped that the St Helena ebony will be made the national flower; the unique St Helena wirebird, which is a kind of plover, which we have already heard about; Jacob’s Ladder, with 699 steps, for those who are a bit fitter than me; Jonathan, the giant tortoise who lives in the grounds of the governor’s residence, Plantation House, who is reputed to be 200 years old and to have met Napoleon; and a golf course with horizontal trees. There is also plenty of history about the appalling slave trade in which the island played a part.

It is vital that we keep it in mind that the airport itself is only the foundation for the hoped-for economic development of St Helena. The goal is to transform St Helena from a small and remote community that is dependent upon grant-in-aid from Her Majesty’s Government to an island which, in time, can become self-sustaining based on a thriving tourism economy. To achieve that goal, the airport is one part of several interrelated and interdependent developments to which my noble friend has already referred to and which are all needed in order for St Helena to achieve at least some degree of economic independence. The airport will, of course, need aeroplanes flying in and taking off. The passengers carried by those aeroplanes will need somewhere to stay. A further aspect directly related to that crucial interdependence between airport, airline and tourism accommodation is the securing of a new shipping service to bring bulk cargo to St Helena. That is needed because the Royal Mail Ship “St Helena”, which the noble Lord and I both travelled on and which has been the lifeline to the island for the past 25 years, is due to be taken out of service after the airport opens.

Each day the airport buildings rise higher from the dust of Prosperous Bay Plain. However, the other vital components remain very much in the early stages of development. The governor of St Helena acknowledged the magnitude of the task ahead in his speech at the ceremony I referred to earlier. He said:

“The more complex, less easy task, is preparing St Helena to be able to benefit from new economic opportunities. But we can do it”.

The acting head of economic development exhorted her listeners,

“to rise to this opportunity and that means all of us working together to grow our economy. To do this we must put business first. This means we must encourage business development, and we must encourage entrepreneurs, both local and overseas”.

With a mere 19 months left before the airport is due to open, progress on developing some parts of the infrastructure for St Helena’s new tourism-based economy have remained virtually static while other parts started to move very late and continue to move slowly. I understand that the first stage of the tendering process for the contract to operate an air service to St Helena will not be completed until 17 July, with the contract scheduled to be awarded in February or March 2015. This gives the successful tenderer no more than one year to successfully complete the job of attracting an adequate number of passengers to a new air service flying to a new and little-known tourism destination.

Beyond that, the technical clearances and ticketing arrangements all have to be resolved at the same time. To attract the number of tourists envisaged, which it is estimated may reach 30,000 a year, there will need to be flights from Europe—the UK and France in particular—as well as from Africa. I hope that the Minister will be able to report significant progress on this, including which airlines have expressed an interest—BA, South African Airways or Atlantic Star, perhaps? When does she anticipate a contract will be signed? The earlier it is signed, the better. This contract-signing could unlock significant inward investment once investors can be assured that flights really are going to arrive.

The other main consideration is accommodation that offers a quality of service for the high-value, low-volume sector of the tourism market that St Helena is aiming to attract. Tourists will need somewhere to stay and so far I understand that no hotel development has started. With completion of the airport just 19 months away, we need to get a move on to build at least one.

Last week at the meeting of the St Helena group, I met two councillors from St Helena—Les Baldwin and Gavin “Eddie Duff” Ellick—who told us that the St Helena Government have set up a company called St Helena Hotel Development Ltd. It would be helpful if the Minister could say something about this. Is the contingency amount for the airport project going to be used to build a hotel? That would make some sense because it could be argued that the hotel is part of the total airport project. In which case, will Basil Read build the hotel? It is already on the island and has a successful track record. Is the Minister able to tell us the situation with Shelco’s plans to build a top of the range eco-hotel? Lastly, I understand that the first stage of the tendering process for the contract for a shipping line for bulk cargo to serve the island after the airport opens will be completed later this month. This contract is scheduled to be awarded in April 2015.

The islanders who are in contact with me are very enthusiastic about the future. I hope the Minister will give credible assurances that Her Majesty’s Government and DfID believe that, as my noble friend Lord Shutt sometimes puts it, “they have all their ducks in a row”.

Finally, many Saints live and work on Ascension and in the Falklands. What progress has been made with the USA over using Ascension as the divert runway for St Helena and on operating a shuttle service between the islands? This would open up the possibility of commercial flights from St Helena and Ascension to the Falklands, thus providing a more complete package for adventurous tourists. In the longer term, have the Government thought about a south Atlantic federation of overseas territories linking St Helena with the Falklands, Ascension and Tristan da Cunha?