To ask the Secretary of State for International Development what recent assessment he has made of the effect on the level of private funding for the island of St. Helena of the decision to delay the construction of an airport on the island. (274788)

Our assessment of the effects on private sector investment following the pause in the negotiations on the St. Helena airport is that it is likely to be reduced in this financial year. This is because many current plans for investment by local businesses, which are modest in scale, have been put on hold pending a final decision following the consultation that is under way. In regard to foreign investment, the St. Helena Development Agency (SHDA) has received interest from five investors in a range of development projects, which are now on hold. The largest potential investor in the hotel resort sector has confirmed commitment to St. Helena while the prospect of air access remains.

To ask the Secretary of State for International Development on what assumptions the reference to increased uncertainties in respect of funding for the proposed airport in St. Helena in the St. Helena Air Access Consultation document was based; and if he will make a statement. (274808)

The St. Helena Air Access Consultation Document refers to uncertainties about the assumptions underlying the airport investment. Examples given in paragraph 36 are: uncertainties about the possibility of cost escalation, due to currency fluctuation for example; and uncertainty over the speed with which benefits can build up, for example the rate and level at which tourism projections would materialise. The document also refers to the worsening global economic conditions and uncertainty over predictions as to how long the current situation will last.

To ask the Secretary of State for International Development what assessment has he made of the change to the annual level of subsidy for the Island of St. Helena following the decision to defer a decision on the construction of an airport on the Island. (274809)

The decision to pause negotiations on the St. Helena airport contract has not affected the level of DFID financial assistance for the island in the current planning cycle. The present three-year assistance package, which was negotiated with the Government of St. Helena (SHG) in 2007 remains unchanged. Our next assessment of the annual level of subsidy for St. Helena will be carried out jointly with SHG in early 2010. This will take into account the decision on the airport following the conclusion of the consultation now under way.