BUSINESS

Airport bonuses attacked

Councils in the north east have become embroiled in a row over bonuses given to former Newcastle International Airport boss John Parkin.

Councils in the north east have become embroiled in a row over bonuses given to former Newcastle International Airport boss John Parkin.

Union bosses and MPs have called for more transparency after it was revealed a council renumeration panel agreed a performance related contract with Mr Parkin which included a £5.95m bonus. A multi-million pound bonus was also paid to finance director Lars Frils, who died last year. The total amount paid to the two men was £8.547m.

A group of councils, including South Tyneside MBC and Newcastle City Council own a 51% share in the airport.

TGWU regional spokesman Graham Eastwood said: ‘I believe the workers at the airport and the north east public have a right to know how such massive amounts of money have been allowed to be paid to John Parkin and the finance director.'

MPs Dave Anderson and Doug Henderson have also called for more transparency.

‘We would expect the councils, as majority shareholders, would have looked closely at this contract,' said Mr Henderson.

Mr Parkin was suspended in March and resigned in May.
The MJ later reported (21 September) that Mr Parkin had been appointed as the new chief executive of Leeds Bradford Airport, despite concerns from trade union leaders. Councillors representing the seven local authorities have been advised not to comment.

A spokesman for Newcastle International Airport said: ‘The company is currently undertaking robust legal action in connection with certain contractual issues involving its former chief executive, and the estate of the deceased executive director.

‘Due to the legal nature of this continuing action, Newcastle International Airport is unable to comment further at this time'.

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