I intend taking Questions Nos. 12, 24, 31 and 41 together.
The six regional airports, which are all privately owned, have each submitted to my Department plans to upgrade infrastructures and facilities at the airports and to strengthen the economies of the regions serviced by these airports.
The Government regard the network of regional airports in the State as being of fundamental importance in meeting the tourism and transport needs of our most peripheral regions and, accordingly, a major capital investment programme for the development of regional airports was announced in 1991, coupled with investment programmes for tourism, services and industry.
The regional airports are all relatively recent in origin. Many of the start-up services at the airports have been badly hit by international recession, particularly the recession in the UK, to and from which most services operate. In addition, low fares on the Dublin/ London route have attracted traffic from regional airports.
I have already voiced my opinion in this House that the fares policies on the Dublin-London route are suicidal in the long term and I have asked the companies involved to address this issue. The regional airports have also expressed their concerns to me and my predecessors in this regard. In response, a special marketing fund was set up in March 1991 under the operational programme for tourism for the marketing of air services to and from the regional airports. The fund is administered by Bord Fáilte.
Up to £500,000 in European Regional Development Fund aid is available to match expenditure by airports and airlines for promotion and marketing purposes. I am disappointed that take-up on this assistance has been negligible to date. In September 1992, I sought the approval of the EC Commission for the use of funds under the operational programme on peripherality for capital grants to the airport companies to strengthen their balance sheets or for subsidies to cover operational losses. The EC Commission again refused my application on the grounds that European Regional Development Fund funds could not be used for such purposes.
In October 1992, I sought increased funds for the purpose of promoting regional airport services. This was also rejected principally on the grounds that a fund for marketing already existed in the operational programme for tourism.
I am currently trying to assess whether there is any source of funding to help tide the regional airports over their current problems. I am, however, very anxious that the current marketing fund be drawn down in full so that the regional airports will be in a position to take advantage of renewed traffic growth when this occurs. The regional airports are part of the economic infrastructure of the regions which they serve and bring important benefits to the regions, particularly by providing quick access points for tourists. In view of this, I hope that local business and commercial interests in the regions will support the regional airport companies in their present difficulties and ensure that the full marketing funds are drawn down.
I hope the Deputies will accept that these measures reflect my commitment, and the Government's commitment, to the maintenance and development of the regional airports. However, we must recognise that in the first instance, the development of traffic is a matter for the airports, while the operation of air services to and from the regional airports is a matter for the air carriers concerned having regard to the economic viability of particular routes. While I will give every encouragement I can, I have no powers to compel carriers to continue to operate particular services or to introduce new services.
In the light of Ryanair's recent decision to discontinue scheduled services from Galway, Waterford and Kerry to London (Stansted), I made it widely known that I was anxious to see new operators replace them. I received a proposal from a new Irish airline, Airbridge Ireland Ltd., who are seeking to commence operations from Waterford, Galway and Kerry to Luton and London Stansted. I am pleased to inform the House that I have given my approval, in principle, for this proposal, subject to the operator meeting my Department's financial, technical and operational requirements. I have also given Aer Arann approval to operate a new scheduled service between Galway and London Stansted.
I understand that a number of UK airlines may be looking at operating services to the regional airports. The licensing of a UK airline to operate any such services would be a matter in the first instance for the UK authorities. However, I have let it be known that I would welcome such services and automatically license any such operator.