Vol. 462 No. 5
34 Mr. Molloy asked the Minister for Transport, Energy and Communications the terms under which Knock Airport's debt to the Exchequer was written off; the State aid, if any, provided before the write-off; the EU and State aid, if any, given since the write-off; and if he will make a statement on the matter. [4976/96]
Knock Airport is managed by a private company, Connaught Regional Airport Company Ltd.
Exchequer grants totalling £9.858 million were granted to the Connaught Regional Airport Development Company in the early 1980s towards the cost of construction and maintenance of the airport. This grant was shown as a contingent liability on the company's balance sheet.
The airport company was restructured in 1991 and the then Government agreed, in the interests of safeguarding the future financial viability of the airport, to treat as non-repayable the Exchequer grants paid to the company. In addition, an amount of £155,000 owed to the Minister for the provision of air traffic control services by the Minister's Air Navigation Services Office, was also treated as nonreturnable.
The debt to the Exchequer was written off on condition that ownership of the airport company would be transferred to a trust the Horan International Airport Trust, the objectives of which were; to hold shares in Connaught Airport Development Company Ltd. and appoint a board of directors to arrange for the conduct of its business in a fully commercial manner; to attract, in conjunction with the board of directors, new private sector investment and new airlines to the airport; to benefit the residents of Connaught, in general, and County Mayo, in particular; to encourage and promote the cultural, commercial and industrial interests of the residents of the said area and to encourage tourism in the said area.
ERDF aid of £214,000 was allocated to the airport under the 1989-93 round of EU Structural Funds in respect of terminal improvements and a weather station.
Knock Airport also received State grants of £270,000 in 1993 and £67,000 in 1995 in respect of marketing and promotion expenses.
