The designation of an enterprise area at Sligo North-West Airport is viewed as an opportunity to enhance not only the development of Sligo airport but also provide a much needed stimulus to job creation which can benefit the whole of County Sligo and the north-west region.
Sligo is the regional capital of the north-west subregion and its airport services an areas within a radius of approximately 40 miles, including counties Sligo and Leitrim, significant parts of south County Donegal, north County Roscommon, north County Mayo, County Cavan and south County Fermanagh.
The north-west subregion is one of the most disadvantaged areas in the country. It is at the extreme periphery of the EU and there is a significant disparity between it and other subregions in Ireland in terms of unemployment, high population losses, low level of average income, low urban base and very low population densities.
The development of the airport is seen as a key factor in seeking to redress the social and economic imbalance from which the area suffers. It is already playing an important role in support of tourism development and many of the major industries which have located in the north-west in recent years have indicated that the availability of a regional airport in close proximity to their plant was a key factor in their choice of industrial location. This is borne out by the conclusions of the EU network project report on the development and promotion of regional airports which states that the existence and success of a regional airport is increasingly critical to the development and economic success of a region as a whole.
The designation of an area immediately adjacent to Sligo regional airport as an enterprise area with special tax status could make a real difference to the capacity of the airport company to raise additional income on an ongoing basis and be of significant benefit in job creation and attracting investment to the region. The provision of an enterprise area with special tax status to specifically attract manufacturing industry and internationallytraded services which in recent years have been established predominantly on the east coast and in our larger cities would be a valuable response by Government to the population loss and employment creation problems in the region.
The social and economic position of County Sligo and the catchment area served by Sligo regional airport has to be viewed in the wider context of the situation of the west. The task force established in recent years to conduct a major study of the problems of the west specifically recommended that its designation status for industrial grant purposes should be maintained and that current measures aimed at the attraction of investment should be vigorously promoted.
The survival of Sligo regional airport depends on three important elements: designation status, capital funding and passenger movements. Has the European Commission raised any queries about the granting of tax designation status? On capital funding, the airport company which in ordinary circumstances cannot meet its operational costs from aviation related income will find it difficult to raise the required matching funds to make the necessary adjustments. It will require grant aid substantially in excess of 50 per cent.
In relation to the essential air service programme tenders have been invited for a three year contract commencing in January. Aer Lingus operates on all three routes concerned, Kerry, Galway and Sligo. There are three round trips to Kerry, two to Galway but only one to Sligo. This acts as a disincentive.
I remind the Minister of State that his party gave a commitment in its election manifesto to introduce the first ever regional airports development Bill which is badly needed. It stated that legislation would be enacted to make it mandatory for the transport Minister to give seats on the boards of Aer Lingus and Aer Rianta to nominees of the regional airports. That would be an important move. It further stated that the legislation would shift the burden of air traffic control costs away from the regional airports which would be exempt from rates. Sligo regional airport's rate Bill is approximately £12,000.
There are 50 acres available at Sligo regional airport which has the full support of Sligo County Council, Forbairt, the enterprise board and the local community. The provision of a development park on this site would be of enormous benefit to the region as a whole. This is an important issue and I appeal to the Minister of State to introduce some of the legislation promised by him when in Opposition.
