JCB boss demands airports decision
THE boss of digger giant JCB has warned that Britain needs to end a logjam over building new airport runways to kick- start the country’s fragile economic recovery.
Chief executive Graeme Macdonald said the government needs to make an urgent decision on whether to expand Heathrow or Gatwick to underpin an investment-led revival.
A commission led by former Confederation of British Industry chief Sir Howard Davies is reviewing three options for airport expansion and is due to publish its final report in the summer.
The options include a new third runway at Heathrow or an extension to one of its two existing runways, or a second runway at Gatwick Airport. But there are fears that ministers could still duck a decision as controversy rages over the noise and pollution impact of any final proposal, particularly at Heathrow.
Macdonald spoke after 100 British business l eaders warned in a statement that failure to act decisively could put the country’s economic growth at risk.
Gavin Hayes, director of lobby group Let Britain Fly, said: ‘The new government should use its fresh mandate to make a bold and early decision to build a new run- way. With all London’s airports forecast to be full by 2030, kicking the can down the road is no longer an option.’
Macdonald said that investment in major projects such as airport expansion was urgently needed to drive productivity and improve Britain’s global competitiveness.
‘ Decision - making is needed. If it’s not Heathrow, it needs to be somewhere else,’ he said.
Macdonald made his comments as JCB blamed turmoil in emerging markets for a £10m fall in 2014 underlying profits to £303m. Sales turnover dropped to £2.51bn from £2.68bn the previous year and machine sales dipped to 64,028 from 66,227 in 2013. JCB said the construction equipment market in Brazil dropped by 17pc in 2014, while Russia fell 27pc, India by almost 15pc and China by 17pc. UK and North American markets grew 30pc and 13pc respectively.
JCB’s sales in North America grew by 23pc – which is now its third biggest market behind India and the UK.
The British market remained strong as the housing market recovery drove demand for construction equipment. JCB also said it was seeing signs of a revival in continental European markets, particularly Portugal and Spain.
JCB chairman Lord Bamford said: ‘Global market uncertainty has continued into 2015. The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth.’