Resounding vindication of Hood job creation scheme

The Dominion Post reported today that regional airline Air Chathams would be “interested” in establishing a regular link out of Masterton once $10 million of public money has been spent upgrading the town’s Hood aerodrome.

Wow. If the government wanted a ringing vindication of its plan, there it is, right there.

The story was a follow-up to one in the Wairarapa Times-Age (which I covered in a sceptical blog post yesterday) announcing the proposed investment of $17 million – $10 million from the government and the remainder from a mysterious source so far undisclosed – in a project that would see Hood's runway lengthened and widened, along with improvements to other aerodrome infrastructure.

My scepticism didn’t relate to the actual construction project, which I’m sure will proceed, but to the promised benefits, which seem as substantial as a wisp of smoke.

I pointed out that previous attempts to run scheduled services out of Hood had failed and no one seemed in any hurry to try again, regardless of whether the airport was improved. Well, we now have Air Chathams general manager Duane Emeny saying his company would be “interested” once the job is done – but that’s hardly an emphatic commitment, so we’re left with the prospect that Masterton will end up with a flash new airport with no more users than it has now (most of whom, judging by my own admittedly limited observations, seem to be recreational fliers and topdressing planes).

What’s more, Emeny pointed out that because starting a new regional air service was not without risk, Air Chathams would seek a “significant support package” to underwrite potential losses. So as well as stumping up for the airport upgrade, the taxpayer would be expected to subsidise whichever operator, if any, is prepared to use it - at least until such time as it's proven (again) to be uneconomic.

Pardon me, but am I missing something here? Finance Minister Grant Robertson says the project will transform Hood into a “modern, functional airport, with capacity for growth beyond its current activity” – but where will the users come from? Has anyone undertaken any research into potential demand, or is the government simply taking a punt and hoping for the best?

Alternatively, should the good people of Wairarapa, once the upgrade is complete, expect instructions to concentrate very hard and by sheer force of collective will, wait for planes laden with tourists to appear magically over the horizon? It almost looks that way.

Failing that improbable outcome, the project looks suspiciously like an extravagant job creation scheme – but one with potential side-benefits for Labour in an electorate that the party has held before and would love to win again.