Dinny McGinley
Question:49 Mr. McGinley asked the Minister for Transport his plans for regional airports; and if he will make a statement on the matter. [27680/03]
Written Answers. - Regional Airports.
Thomas P. Broughan
Question:83 Mr. Broughan asked the Minister for Transport if the scale of Exchequer assistance to some of the regional airports, in particular Kerry, Galway and Knock, will have to be carefully assessed if Shannon and Cork airports are to be established as stand alone entities; if such an assessment has taken place; the results of such an assessment; and if he will make a statement on the matter. [27821/03]
I propose to take Questions Nos. 49 and 83 together.
The programme for Government provides for the continued support of our six regional airports and for regional air access. My Department provides three sources of financial assistance in support of this objective, namely, subvention of the PSO services which facilitate air access to the regions concerned, the allocation of assistance towards marketing, safety and security related expenditure incurred by the regional airports, and capital grant assistance towards infrastructural improvements under the regional operational programmes of the NDP.
A renewed three year PSO air services programme to the regional airports was launched last year in accordance with the programme for Government and regular PSO air services are now operating to the regional airports. The review of air services supported by the essential air service programme – PSO air services – was commissioned by the Department in March 2003 under the Government's expenditure review initiative. The review was undertaken by DKM Economic Consultants and was completed in May 2003. I am considering the outcome of this study with a view to determining my future approach to the PSO regime and hope to outline my decision on this issue shortly.
My Department provides grants to the six regional airports towards the costs of marketing, safety and security measures at those airports. I allocated €2.24 million under this grant scheme for 2003. Grant-aid of approximately €9.2 million has already been approved under first round allocations under the regional airports measure of the NDP. I expect that the first round of approved projects, currently being funded under the regional airports measure of the NDP, will be completed by mid-2004. The primary objective of this measure is to facilitate continued safe and viable operations at the regional airports. In light of prevailing budgetary constraints, a new round of projects will be considered for funding under the measure as soon as the regional airport companies draw down existing allocations.
The scale of Exchequer assistance to the regional airports will have to be carefully assessed. The review of the PSO regime to which I have already referred points to the escalating costs of that regime and questions whether it is achieving its policy objectives. I stress, however, that my objective is to create a reasonably level playing field between the six regional airports, on the one hand, and Shannon and Cork airports on the other. The legislation I am preparing to give effect to the airport restructuring will provide for revised regulatory arrangements to achieve this objective. The Government's commitment to supporting the regional airports is not in question.
Question No. 50 answered with Question No. 43.