Hampshire County Council
Planning and Transportation Committee Item 10
6 July 1998
Daedalus Development Strategy: Aviation Study
Report of the County Planning Officer
1. Summary
1.1 Hampshire County Council in partnership with Gosport
Borough Council, Fareham Borough Council and the Ministry
of Defence commissioned consultants to advise on the
viability of continuing aviation at Daedalus. The study has
now been completed and Members are asked to request that
Fareham and Gosport Borough Councils reconvene the Daedalus
Joint Members' Panel to consider the study and its
implications for the future of the site.
2. Background
2.1 The site of the former HMS Daedalus is located between
Stubbington and Lee-on-the-Solent, as shown on the attached
plan. The site comprises two distinct areas - the airfield
in the north, largely in Fareham Borough, which has three
runways and covers 160 hectares, and the southern built-up
area in Gosport Borough covering nearly 40 hectares. The
airfield is part of a Strategic Gap separating Stubbington/
Lee-on-the-Solent/Fareham/Gosport. The site was released
for disposal by the Ministry of Defence in April 1996. At
present the airfield, excluding the southern built-up part
of the site, is on a short term lease to the Police
Authority which uses the western runway, with the remainder
of the airfield operated on a care basis. The coastguard
operates a search and rescue helicopter from the airfield,
and the Lee-on-the-Solent Flying Group and Portsmouth Naval
Gliding Club also fly from Daedalus. The Home Office, on
behalf of the Police Authority, has made an application to
the Ministry of Defence to purchase the main western runway
to continue its operations. The decision of the Ministry
of Defence is still awaited.
2.2 In 1995 Gosport Borough Council sought the County Council's
cooperation in participating in a partnership with the two
Borough Councils and the Ministry of Defence to prepare a
development and marketing strategy for the site. In April
1996 this Committee endorsed the County Council's
participation in preparing a strategy and resolved to
appoint four Members to represent the County Council on a
Joint Members' Panel to consider issues associated with the
site. In 1997, following public consultation, this
Committee (September), on behalf of the County Council,
together with Fareham and Gosport Borough Councils adopted
a Development Strategy for the site. The strategy allows
for a number of land use options for the site which could
include employment uses, housing, recreation and leisure,
aviation and mineral extraction.
2.3 The potential for mineral extraction remains the most
controversial issue at Daedalus. As Members may be aware
the airfield is underlain by a valuable deposit of sand and
gravel. The Deposit Hampshire Minerals and Waste Local
Plan (HMWLP) identified the airfield part of the site as a
preferred area for sand and gravel extraction. The
Inspector in his report on the Public Inquiry into
objections to the plan concluded that there is a need for a
new sand and gravel extraction site in South East Hampshire
and that mineral working would, in principle, be
environmentally acceptable at Daedalus. However, he came
to the view that the uncertainty as to the future of
aviation at the site and its role in assisting economic
regeneration needed to be resolved before any part of the
area should be identified for mineral working. However, he
also said that should the demand for aviation not be
realised then it would be appropriate to reassess the
situation when the Plan is reviewed. The site was
subsequently deleted as a preferred area from the Local
Plan, though the mineral deposits are safeguarded by Policy
5 of the plan. In the light of the Inspector's report the
County Council together with the other partners
commissioned a further study from aviation consultants to
undertake a business appraisal for the airfield. The
consultants have now completed the study and a summary is
attached as an appendix. A copy of the full study is
available for inspection in the Planning and Surveyor's
Library.
2.4 The objective of the aviation study was to undertake a
business appraisal for the airfield to enable the local
authorities and the landowner to better understand the
consequences and costs of continued aviation use at
Daedalus. The study assessed the commercial viability
under the following scenarios:
(i) use of the airfield for general aviation purposes,
including the Police and coastguard services, and
the full potential of the hangers for either
aviation or industrial/storage use. (General
aviation taken to mean all aeroplane and helicopter
flying except that performed by the major airlines
and the Armed Services, eg business flying, air
taxis and aerial surveying); and
(ii) as above but including commercial flying.
The viability of both of the above options was tested
having regard to a one, two or three runway airfield and
the possibility of the airfield being divided into two
ownerships, eg the main western runway being owned by the
Police Authority and the remainder of the airfield being
owned by another operator(s).
2.5 The study concluded that commercial air services at
Daedalus are unlikely, given the good transport links
enjoyed by Southampton International Airport and the lack
of infrastructure at Daedalus, the only possible exception
might be a low cost short haul commuter service.
Opportunities in the general aviation market appear more
attractive. A potential user survey indicated interest
from flying training organisations, aircraft sales
companies, and aircraft maintenance companies. Interest
however related to some of the buildings or land only, and
not the site as a whole. The consultants consider that
potential buyers may emerge once the site is actually put
on the market. To increase the chances of being
commercially viable, as well as maximising the potential
economic benefits, the site would have to attract business
aviation traffic and aircraft maintenance and manufacturing
organisations.
2.6 In regard to the viability of the airfield utilising one,
two or three runways, the case for retaining two or three
runways in a fully operational condition for the relatively
infrequent occasions when crosswinds would require their
use was not considered to be financially sustainable.
Therefore, only the single runway option was taken forward
for further detailed consideration. Three options based on
retaining the main western runway were assessed:
(i) single commercial operator with the whole of the
airfield site;
(ii) single commercial operator with the western half
only; and
(iii) whole airfield with split Police/commercial
ownership.
2.7 The financial analysis indicated that only option (i) was
sufficiently commercially attractive, paying back after
seven years, whereas the other two options would only pay
back after 10 years. The consultants acknowledge, however,
that if lower land values were assumed then the other two
options may be more commercially attractive. Nevertheless,
from a purely commercial perspective the consultants
recommend that the site be disposed of as a single entity.
3. County Planning Officer's Comments
3.1 Daedalus and its future use is of strategic importance.
The aviation study demonstrates that if aviation use is to
continue at Daedalus it is likely to be in the general
aviation sector, rather than commercial flying. It also
appears that the continued use of no more than the main
western runway would be financially viable. However, only
when the site is disposed of will the true extent of market
interest in the site become apparent and firm proposals
emerge. Any development proposals for the site will have
to be judged against national planning guidance and the
policies of the structure and local plans, and the
development strategy.
3.2 The study's findings and conclusions and its implications
on the potential for mineral extraction will be carefully
considered as part of the future review of the HMWLP by the
County Council's Minerals Panel and this Committee. In the
meantime I consider that the Joint Members' Panel should be
reconvened to consider the study and that a further report
be made to this Committee in due course. As the Panel has
not met since 1996 and in view of the changed membership of
the Committee since then it will be necessary to appoint
four representatives to sit on the Panel.
Recommendations
1. That Fareham and Gosport Borough Councils be requested to
reconvene the Joint Members' Panel.
2. That four Members be appointed to represent the County
Council on the Joint Members' Panel.
3. That a further report be submitted to this Committee at a
later date.
4688/SB
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