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Dáil Éireann debate -
Tuesday, 13 May 1986

Vol. 366 No. 4

Ceisteanna — Questions Oral Answers. - Airport Capital Expenditure.

5.

asked the Minister for Communicatoins his plans for capital expenditure on each of the country's airports in 1986.

It is proposed to spend almost £8 million on capital works at the three State airports in 1986, made up as follows:

£

Dublin airport

4,271,000

Shannon airport

2,711,000

Cork airport

991,000

Total

7,973,000

The works will include the provision of infrastructural services relating to the Dublin airport runway project and associated buildings, new accommodation for maintenance staff at Dublin airport, extension of the apron and provision of additional fuel storage facilities at Shannon airport, improved fire protection facilities for the control tower at Cork and the provision of new and replacement instrument landing systems at Dublin and Cork airports. In addition, provision has been made for the payment of some £625,000, being the balance of a grant commitment for the construction of a new runway and related facilities at Carnmore airport, County Galway.

Has the Minister any proposals to provide capital for the Connacht regional airport in 1986?

That is a separate question. I have told the board of Connacht regional airport consistently over the past year and a half, or so, that I would give them every possible assistance other than further State funds. This is what has been happening. My Department are actively trying to meet deadlines in order to allow the opening of the airport on 30 May 1986. I have every expectation that all the basic requirements will be met to allow that to happen.

Has the Minister any proposals to provide capital for the Connacht Regional Airport in 1986? In view of the fact that the airport project at Knock has progressed so well so far, would the Minister reconsider the decision not to provide any capital whatsoever for its development in 1986?

State funds of £9.8 million have been spent on the airport and another £2 million to £3 million has been spent to date. I understand that the completion of the airport would require another £2 million or more. Since January 1983 all grants made by the Exchequer must pass a commercial test — single decisions will be taken to bring some order into the way decisions are taken which would involve big financial commitments — and unfortunately the airport at Knock would not pass that test. Therefore, I cannot make available further State funds. I think the airport board accept that. What is important now is that we do everything possible to ensure that the investment made will be put to good use and that, notwithstanding all the prognosis to the contrary, the airport will achieve maximum success. I intend to do everything possible to help the airport to become a success.

Is there any application from the Department or the Government to the EC Regional Fund for capital to develop Connacht Regional Airport?

When Deputy Wilson was in Government there was a proposal put tentatively to the European Commission. It was not pressed at that time because of the vibrations they got back. Subsequent inquiries elicited similar vibrations, so it was thought prudent by successive Governments not to press the point. The most recent discussion I had in regard to the Connacht Regional Airport was many months ago. I told the board that we would go to the EC but because they were unlikely to pass the Exchequer viability test they were unlikely to pass the EC test. However, I told them that if they could give me ammunition to use in a submission to the EC I would be glad to use it. I have not seen any such ammunition.

My receiver was not sensitive enough to receive such vibrations. Will the Minister indicate his intentions in regard to all the other provincial airports? In the past they attracted capital grants. What are his intentions in 1986?

We have outlined our policy in relation to future development of regional and local airports. A prerequisite for any application to be considered would be a local commitment of at least 25 per cent of a project. Even then, the remaining 75 per cent would have to be justified on financial and economic criteria.

Does the Minister intend to change his nasty comments on the Connacht Regional Airport? He made disgraceful comments about the foggy boggy site. Does he now realise that it will be one of the finest airports, with a great future——

I am ruling the Deputy out. He is obviously out of order.

You should not protect the Minister.

Can the Minister tell me if the £2.7 million for Shannon includes the cargo handling facility which Aer Lingus propose to provide at Shannon? Is there any provision to extend the mail order facility at Shannon and a number of other projects which are awaiting development there? Can the Minister give an overall figure of the total to be spent in capital developments at Shannon in 1986? My understanding is that projects under way or about to commence at Shannon will not be covered by the £2.7 million. Is it proposed to borrow some money?

The first thing to be said about Shannon is that it is booming. Last year and the year before they had extraordinary successes — they were their best years ever and I am glad to have presided over that success story as well as others.

It was Aeroflot.

The £2.7 million will be spent either by Aer Rianta or the Department. The breakdown is as follows: new fuel storage facilities, known as the Western Fuel Farm, £1 million to be spent by Aer Rianta; and further construction projects will account for £1.15 million; electronic equipment will account for £560,000. The total will be £2.7 million. That would not include any expenditure by Aer Lingus or other companies or agencies.

The Minister will put up £1.5 million and the remainder will be borrowed by Aer Rianta.

The money spent by Aer Rianta will eventually rebound to the Exchequer because any surplus made by Aer Rianta will come back to the Exchequer. Any repayments of borrowings would come out of the Exchequer, unless the investment makes a profit, as we expect it to do on this occasion. Not only would there be no cost to the Exchequer but there would be a profit to Aer Rianta, and therefore to the Exchequer.

This began as a simple little statistical question but it has blossomed forth into a debate——

Is the £1 million for the cargo handling facility development by Aer Lingus included in the Minister's figure? Will that be provided by Aer Lingus under a separate heading?

Yes. The question relates to proposals for airports and is covered by two headings, money spent by Aer Rianta or money spent directly by the Department for equipment, etc.

Like Deputy Daly, I wish to put a question about capital work. The Minister has said that the £2.7 million does not include a provision for freight facilities for independent users as distinct from Aer Lingus. I am satisfied that approximately £5 million will be spent at Shannon this year, a substantial boost to the construction industry, but would the Minister explain if the additional freight facilities for independent carriers will be included in this year's programme?

I do not have the answer to that. There is a provision of £1.15 million for other construction programmes and equipment. I can get details for the Deputy later in the afternoon.

Will the Minister state if contributions already made will be taken into account in determining whether 25 per cent local funding has been made, or is it the case that each project will be considered separately and the 25 per cent put forward in each case?

The principle would apply to the overall cost of any project. It is 25 per cent of the gross cost.

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