Matthias: Airport should attract more business

While critics of the proposed international airport at Argyle harp on the issue of its viability, Dr. Rudolph Matthias, Chairman of the International Airport Development Company (IADC), has made it clear that it is not the Government’s main focus.{{more}}

At a consultation held at the Stubbs Primary School on the evening of Thursday, September 4, 2008, on the issue of the proposed international airport for Argyle, Dr. Matthias and his counterparts made every effort to win the audience’s favour.

The consultation could have easily been mistaken for a public speaking contest between Opposition Leader Arnhim Eustace and President of the Employers’ Federation Noel Dickson, who on one hand bluntly stated that they are not in favour of the airport, and on the other hand Dr. Matthias and Physical Planner Bentley Browne who made their case on the premise of the value of the airport to the Vincentian economy.

Dickson asked the audience what projection is there to recover the cost of the project. He said given the cost of the project, he finds it difficult to make any prediction when the project is to become viable.

He argued that for any international airport to function profitably in the Caribbean, that airport must be functioning as a hub.

Dickson said Barbados is a well-established hub and as a consequence he does not see St.Vincent and the Grenadines replacing Barbados for the purpose.

“We are not building an airport in Argyle simply because the airport might or might not be viable. We are not planning to make a profit on building the Argyle International Airport. That is not the reason for building the Argyle International Airport.

Anybody who focuses on whether Argyle International Airport is going to become viable is missing the mark by many, many, millions of miles,” said Dr. Mathias in response.

He explained that the International Airport is being built to mainly attract business in other sectors of the country’s economy.

“If Argyle doesn’t make a profit it doesn’t bother the government in the least because we don’t care whether Argyle makes a profit. We care that investments are attracted to St. Vincent. The kind of investments like at Buccament that is going to create 500 rooms.

“You would not have Buccament (Beach Resort) in St. Vincent without an International Airport in St. Vincent. In fact I had a meeting last Monday with the new people who are going to be the subcontractors now at Buccament and they have been telling us that they intend to start a Boeing 747 to bring their people directly to St. Vincent to fill their hotel rooms,” said Matthias.

He explained to the people of his hometown that the government is trying to create an environment in St. Vincent and the Grenadines from which business people from overseas would see that the country is a good venue for investment. When this happens, he stated, “it creates employment for you; it creates employment for my daughter; it creates employment for your children, and for your children’s children.

“We are not talking about the viability of Argyle. That is not the point. You are missing it,” said Dr. Matthias.

He told the gathering that he is happy to be a part of the nation’s national dream.

He quipped: “I am almost certain, too, that it is a national nightmare for a few persons.”

Dr. Matthias started his presentation in earnest claiming that he wanted to allay the fears that were being created by the previous speakers.

He said the cost of $480 million put forward by the government in 2005 as the cost for the airport was recently revised after the Cuban experts working on the project updated the estimates.

“Cost for just about everything has gone up. If you built a home in 2005 and you go to estimate the cost of that same building today you’ll find that it is more expensive. Obviously, if you are going to be costing the building of an airport in 2005 and you are to compare it with what it would cost today in 2008 it must go up and more,” said Dr.Matthias.

“If an estimate of an airport in 2005 for $480 million was reasonable, is it reasonable to think in 2008 three years later it would have gone up by over $600 million?” questioned Dr. Matthias, taking objection to the estimated $1.1 billion cost for the construction of the airport put forward by the Opposition.

Dr.Matthias disclosed the airport is now estimated to cost $598 million, and with rising costs there is a probability the figure may increase.