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Inspectors have raised doubts about whether plans to reopen Manston Airport have the financial backing required.
The latest round of Planning Inspectorate hearings discussed the funding situation behind investment group RiverOak's ambitions to build a new airport on the Thanet site.
But lead inspector Kelvin MacDonald was concerned about a lack of "verifiable evidence" regarding the company's funding to create a new cargo hub as it applies for a development consent order (DCO).
A DCO would give the company the right to take control of the site using a compulsory purchase order, paving the way for it to become an airport again, five years after it was closed.
Michael Humphries QC, representing RiverOak, said the company had £13.1 million held in an account to compensate landowners should the compulsory acquisition be granted.
He said: “The important point is there are funds available. The investors wish to remain anonymous.
“With funding for the project itself the standard is slightly different.
“Few DCOs have been granted when funding is available when a decision is made.
“The funders will want to look at the details because they won’t commit until they see it. That doesn’t stop applicants [for a DCO] coming forward.”
Mr MacDonald said: “I would suggest one of the reasons we’re eager and are interested in the funders might be because that it’s our opinion we don’t have verifiable evidence as to the likelihood of funds being available.
“This is an unusual application for a nationally significant infrastructure project as it’s not relying on public funds.”
He said in many cases there would be audited accounts and annual reports which they could draw on which were lacking from RiverOak.
The inspector sounded caution to RiverOak about investors remaining confidential and listed as “Mr with several Xs”.
Mr MacDonald started proceedings at Discovery Park, Sandwich today by reminding the room “a compelling case in the public interest” needed to be made.
He dismissed claims by RiverOak the inspection was for “land use” only, adding: “If we remain solely focussed on land use we would not be discussing compulsory acquisition.”
The hearing was told HMRC has investigated RiverOak’s sources of funding - a foreign direct investment scheme from investors based in Belize who wanted to remain anonymous.
Mr Humphries said the funding has to come from abroad to qualify for business investment relief - a government scheme to encourage non-UK residents to invest in Britain - to prevent paying double tax in the UK and in its home country.
RiverOak director Nick Rothwell conceded while one of their financial backers who will be providing investment for Manston has been audited by HMRC it was relating to a previous project.
The company agreed to provide its latest accounts from August 2017 to the end of May 2019 which they said show it has already spent £15m on the DCO application.
Mr Humphries said if the money wasn’t available for the overall project then “nothing happens”.
But Stone Hill Park responded saying the question of funding for the overall project “is fundamental to the process and can’t be glossed over”.
The company's lawyer added if the order is granted and then the airport development never happens because there is no money the “whole basis of this process will have been a waste of time”.
"It’s our opinion we don’t have verifiable evidence as to the likelihood of funds being available..." lead inspector Kelvin MacDonald
Questions were raised about a lack of detail in a single page spreadsheet submitted to the examination as RiverOak's business plan.
But the company said it would be looking to provide more detailed analysis relating to its negotiations to inspectors by the next evidence deadline on June 14.
Louise Condon, from York Aviation, consultants for Stone Hill Park, said: “I don’t know where to begin. There are basic facts in the public domain that Manston could achieve.
“I don’t think we’ve heard answers.”
Ms Condon added the submissions made by RiverOak suggested they expected to make four times the amount of revenue than the most comparable existing airport - East Midlands Airport.
She said: “That goes to the heart of whether it’s viable. How have those numbers been calculated?”
But RiverOak said it would be difficult to bring those numbers to the table “at 30 seconds notice”.
Mr MacDonald responded saying Stone Hill’s “keenness to drill down into these was demonstrated at previous hearings”, adding: “I don’t accept that it’s at 30 seconds notice.”
Mr Humphries said: “The type of discussion are the sort of things that go directly to the commercial issues which the company is unwilling to discuss.”
