Mulherin queries progress on securing 90 per cent grant funding for Knock Airport

The status of an application the European Commission for up to 90% funding for capital works at Ireland West Airport Knock was raised in the Dáil by Fine Gael Deputy Michelle Mulherin.

“I want to know whether a special case has been made in that regard and about the timeframe involved,” she said. “Thankfully, those involved with the airport are developing new transatlantic flights and trying to open that market. For that reason, they need capital investment immediately. The apron and the runway need to be extended to cater for the traffic at the airport. All of this needs to be done to put the airport on a self-financing footing.”

Deputy Mulherin said the airport is of strategic importance because it serves the west and north-west regions and caters for approximately 700,000 passengers each year. In recent years, the authorities at the airport have been explaining the case for the expansion of the airport so that it can grow further.

“Passenger numbers have been maintained at 700,000,” she said. “The airport would need to have more than one million passengers in order to become self-financing. It wants to grow. It is always on the lookout for more business. It is very dynamic and efficient. The west is the only region in the country that is not serviced by motorways, high-speed trains, or developed cargo and passenger deep-water ports. It is a peripheral region in Ireland and in Europe. Ireland West Airport Knock is not like any other regional airport.”

In reply, Minister of State Sean Sherlock said the Exchequer provides funding supports to the four regional airports in Donegal, Kerry, Waterford and Knock under the regional airports programme operated by the Department of Transport, Tourism and Sport. Over the past decade, Knock has received almost €21 million in Exchequer support in operational and capital grants under the OPEX and CAPEX funding schemes administered by the Department.

In August last year, he said the European Commission gave its approval for the Department's new regional airports programme, which takes account of the recommendations of the Knock study group and the subsequent decision by Government to continue funding supports to the four regional airports.

“The for capital projects at airports with fewer than 1 million passengers per annum is 75%,” he said. “The EU guidelines recognise, however, that airports in this category may face difficulties in sourcing the balance of at least 25%. Subject to a case-by-case assessment, an aid rate in excess of 75% may be justified in exceptional circumstances. In such a scenario, the Commission has indicated that a business case justifying any proposed higher aid rate would have to be approved by it and must be able to demonstrate the airport's inability to proceed with the proposed investment at the 75% aid rate. Under a new aspect of the regional airports programme called the public policy remit, all of the regional airports, including Knock, are eligible for grant assistance up to 90% towards the cost of capital investments in the areas of safety and security. There is also a PPR scheme which assists with grants of up to 100% of the operational costs of the airports in these two areas. Last year, under the first year of the new programme, Knock received almost €1.2 million in grant supports from the Department and the latter has already begun engaging again with all four airports on their future requirements for capital grant assistance.”