Dáil Éireann debate -
Tuesday, 24 Feb 1998

Vol. 487 No. 6

Written Answers - State Aid to Ryanair.

Ruairí Quinn

Question:

36 Mr. Quinn asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4735/98]

Emmet Stagg

Question:

38 Mr. Stagg asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4729/98]

Jack Wall

Question:

46 Mr. Wall asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4730/98]

Derek McDowell

Question:

57 Mr. McDowell asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4742/98]

Róisín Shortall

Question:

61 Ms Shortall asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4743/98]

Michael Ferris

Question:

75 Mr. Ferris asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4747/98]

Dick Spring

Question:

77 Mr. Spring asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4732/98]

Thomas P. Broughan

Question:

78 Mr. Broughan asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4746/98]

Breeda Moynihan-Cronin

Question:

81 Mrs. B. Moynihan-Cronin asked the Minister for Public Enterprise the State aid which was given to Ryanair, apart from reduced or rebated ground handling charges, in the period 1989 to 1994 inclusive; the form this State aid took; the monetary value of this aid; if it included assistance with the cost of setting up its operation and training of staff; if it included the costs for the promotion of particular routes to Irish airports; if it included the value of the developed routes from Stansted to Liverpool and Munich to Dublin; which developments were funded by Aer Lingus and which were granted exclusively to Ryanair in 1989 by ministerial order; if she reported this State aid to the EU Commission; if so, the dates involved and the reply, if any, received from the Commission; and if she will make a statement on the matter. [4734/98]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 36, 38, 46, 52, 57, 61, 75, 77, 78 and 81 together.

As far as forms of assistance to Ryanair are concerned, other than reduced or rebated airport charges, from inquiries which my Department has made of the Departments of Tourism, Sport and Recreation and Enterprise, Trade and Employment, I understand that Ryanair up to the end of 1994 had received tourism marketing grants totalling £1.062 million under the Operational Programmes for Tourism, 1989-93 and 1994-99. These were European Regional Development Fund funds from programmes which were generally available for tourism promotion purposes and as such did not constitute State aid.

I also understand that FÁS provided £45,600 to Ryanair in the years 1991-93 under the FÁS training support scheme and a further £120,900 in the years 1993 and 1994 under the FÁS job training scheme. Such moneys were generally available from FÁS to industry for training support.

Finally, I understand it was announced in late 1996 that Ryanair, in the form of its subsidiary Ryanair Direct, will receive assistance of £2.2 million over the years 1997-99 from Forbairt for the establishment of a new teleservice-telemarketing business in Dublin. This type of support to industry is widely available and I understand that it generally comes under an exemption, agreed with the European Commission, from the State aids rules. In line with this exemption, the assistance to Ryanair Direct was not required to be reported to the Commission.

As regards the allocation of routes to Ryanair and Aer Lingus in 1989, the position is as follows. The then Minister for Tourism and Transport announced in September 1989 a Government policy for Irish aviation. The Minister granted exclusive rights to Ryanair in 1989 on routes from Dublin to Luton, Stansted, Liverpool and Munich. It should be noted that at the same time, it was decided to grant Aer Lingus sole rights on the routes from Ireland to Heathrow and Gatwick and from Dublin to Manchester and to Paris. The decision applied for a period of three years up to the end of 1992.