asked the Minister for Transport and Power whether, further to his statement on 20th February that the loss this year on the three Irish airports will be approximately £740,000, and to his estimate in a reply of 28th February that the receipts from the new passenger service charges will be approximately £150,000, his Department have any further plans under consideration for cutting down the deficit on the three airports.
Ceisteanna—Questions. Oral Answers. - Airport Deficits.
41.
The estimated loss of approximately £740,000 on Irish Airports to which I referred is made up as follows:—
|
£ |
|
|
Operating Costs |
623,000 |
|
Interest on capital @ 5% |
439,000 |
|
Depreciation @ 4% |
337,000 |
|
Air Navigation Services (Air Traffic Control, Radio and Meteorological Services) |
454,000 |
|
1,853,000 |
|
|
Less Revenue |
1,115,000 |
|
Loss |
£738,000 |
In a number of countries, the cost of air navigation services is not regarded as a charge on the operation of airports. If this system were adopted here, the estimated loss for 1961/62 would be reduced to £284,000. Where these charges are included most European airports have been losing money. The position here should be improved next year by the addition to revenue of some £150,000 from the new passenger service charges and such other steps as may be possible and consistent with our policy will also be taken.
The necessity to increase revenue and to keep expenditure to the essential minimum is constantly under review in my Department. The scope for increasing revenue, however, is limited by the need to have regard to the charges made in other countries for airport services. For example, landing charges for aircraft in this country cannot at present be increased to a level which would result in diversion of traffic to foreign airports. A reduction in the loss on the operation of Irish airports depends mainly, therefore, on increased revenue arising from the growth in air traffic. I see no prospect of any sudden or spectacular increase in airport revenue, except as a result of measures taken in concert with the airport authorities in other countries. I would like to see all airport authorities make a determined effort to increase revenues and to end an anomalous position which has absolutely no justification.