I thank the Chairman and I apologise for being late. I hit an unavoidable problem on the way in which was none of my own making. I thank the Chairman and committee for the opportunity to present details of this Supplementary Estimate for my Department. As the members will be aware from the advance brief circulated, there are two elements to the Supplementary Estimate. I refer to a sum of €6 million from the Irish Aviation Authority, IAA, dividend and €37.5 million, which has been agreed with the Minister for Finance, Deputy Donohoe, to boost investment in the transport, tourism and sport sectors.
Given the IAA’s strong financial performance and significant surplus cash reserve, it was agreed it was sufficiently well funded to pay at least one special dividend. This is in addition to the agreed annual dividend policy of 30% of profits after tax. As part of that agreement, the IAA committed to further special dividends in 2019 and 2020, subject to prevailing conditions. As was the case this year, I will consult the Minister for Finance with a view to retaining a portion of the special dividends, to again be reinvested in the work of my Department. The second part of the Supplementary Estimate, €37.5 million, is being allocated for a range of projects.
The Estimates for 2018 provide an overall gross allocation to the Department of Transport, Tourism and Sport of €2.03 billion. This additional money will now bring the total allocation to €2.07 billion. The total allocation is used to provide investment in critical infrastructure and to ensure that vital services are available to the public during 2018. I will briefly go through the areas that are recipients of this additional money. Funding of €1.5 million for aviation will assist with operational grant applications from the regional airports. The majority of this funding focuses on supporting the wage costs for the provision of essential safety and security services. In the public transport area, €5 million has been allocated for bus and Luas investment. This will partly fund bus fleet purchases and partly fund a stage payment for the eight additional Luas trams being purchased under the green line capacity enhancement project.
A sum of €200,000 will go towards an Irish Rail accessibility app which will assist rail users with sensory or mobility impairments and €400,000 will be invested to improve the safety of cyclists by installing cyclist detection systems at junctions. There will also be €3 million for working capital relating to the bus market opening, BMO, programme, which commenced on 9 September. The working capital requirement for BMO arises from the gross cost contract arrangement with Go Ahead and Bus Éireann for routes that have been opened to competition. In this case, the National Transport Authority, NTA, will collect all fare revenues and carry the associated revenue risk.
In the roads area, the main allocation will be to regional and local roads, with an additional allocation of €15.03 million towards roads maintenance. As the committee will be aware, in recent years the impact of severe weather has intensified the vulnerability of a weak network in need of maintenance and repair. This amount will be allocated to local authorities affected by such events this year under a new special maintenance grant. In addition, €700,000 will also be allocated to the purchase of salt for use on regional and local roads. The severe winter just gone resulted in exceptionally high salt usage and, therefore, this additional money will ensure adequate stocks are again in place. Funding for national roads will be increased by €3 million to cover winter operations, public lighting and other outstanding maintenance. A sum of €7 million will be used for a payment to FBD in respect of the compensation, legal costs and court interest payable on a case from 2009 where a court of appeal found the State had liability.
Under the maritime heading, search and rescue helicopters have been adapted for the night vision imaging system, NVIS, and the necessary night vision goggles have been purchased. This system is necessary to improve search and rescue capability. The allocation in the Supplementary Estimate of €1.7 million will go towards the provision of training on the use of the NVIS. This will complete the project adapting search and rescue helicopters and crews to night vision imaging systems.
In sport, €1.5 million is being allocated to Sport Ireland for high performance sport. This funding will be used to assist athletes' preparations for major competitions, including the 2020 Olympic and Paralympic Games in Tokyo and key world and European championship events. A sum of €1.12 million is being provided to Sport Ireland to meet the following costs. A sum of €750,000 has been allocated to the Irish Open golf event, €100,000 to Paralympics Ireland, €120,000 to anti-doping and €150,000 to the women in sport programme.
In regard to tourism, €500,000 will be spent by Fáilte Ireland targeting short breaks over the winter specifically to visitors from Northern Ireland and it will also spend €100,000 supporting more international publicity. A sum of €250,000 will be spent to enhance the programme for the New Year’s Festival Dublin to deliver an even better festival and to attract and grow additional tourist traffic at a time of year we have spare airline and accommodation capacity. Tourism Ireland will spend €2.5 million on a range of tourism marketing initiatives. My Department has a vital role to play in Ireland’s social and economic prosperity and I am pleased that this additional allocation, together with the funding committed over the lifetime of the national development plan, should enable us build a better Ireland. I am happy to address any questions the committee may have.
