UK government to fund Atlantic Island airport

The government is to spend tens of millions of pounds building an airport on the tiny island of St Helena, it was revealed.

International Development Secretary Andrew Mitchell said the UK had an "obligation" to improve access to the remote Overseas Territory - which has a population of just over 4,000.

Currently, the only public traffic to the island is on the RMS (Royal Mail Ship) St Helena.

The Labour government originally pledged to construct an airport on St Helena in 2005, before putting the project on hold last year citing the difficult economic climate.

However, in a statement to MPs today, Mr Mitchell - whose department has been controversially exempted from swingeing Whitehall cuts designed to tackle the deficit - said: "The government recognises its special responsibilities and international obligations towards its Overseas Territories, and is committed to supporting their economic development...

"Should an airport not be built, HM government would have to spend an estimated £64 million on a new ship, because the current vessel is reaching the end of its economic life, and continue to subsidise its operating costs.

"St Helena would stand little chance of becoming financially independent, meaning it would permanently rely on substantial annual budgetary and other support from HM government (currently in excess of £20 million every year).

"A new ship would provide a costly service, but not a solution to St Helena's stagnation and perpetual dependence on UK aid support."

The green light is contingent on the government achieving an "acceptable contract price" for the project, as well as reforms by the St Helena government to boost its economy.

The cost of the airport to the UK taxpayer is expected to be well in excess of the £64 million bill for a new ship.

But Mr Mitchell insisted that the "additional short-term costs" were "outweighed by the long-term benefits" if St Helena was able to operate without government subsidy.

"I believe this option is likely to represent the best value for the British taxpayer," he added.

The island, which covers an area of just 47 square miles in the South Atlantic, has been under British control since the 17th century.

It is best known as the place where French emperor Napoleon Bonaparte was exiled and died in 1821. Shadow international development secretary Douglas Alexander said Mr Mitchell needed to explain why he had given the go ahead when crucial questions about the costs and technological feasibility remained unclear.

"Given the economic conditions facing the UK and pressures on the international development budget, we had rightly questioned whether this was an appropriate decision to make at the time, and so conducted a full consultation and requested further consideration of other options," he said.

"Andrew Mitchell still needs to tell us how much this project will actually cost the British taxpayer, and whether this represents the best use of our aid budget."

Downing Street acknowledged ministers had had to think "long and hard" about the project but had concluded it was justified on economic grounds.

"It is better to build the airport than to meet other costs in the long term," an official said.