My Department is considering two separate proposals concerning the runway, and other infrastructural developments, at City of Derry Airport. The first proposal is for a runway safety improvement project originally approved in 1999. In the context of the programme for peace and reconciliation in 1999, the Department paid €1.9 million towards safety-related improvements to the runway. The Northern Ireland authorities made a similar contribution to the project. However, the project suffered from cost increases arising from environmental objections and various technical problems. Derry City Council, the owner of the airport, is now seeking further assistance from both administrations to meet the additional, unforeseen costs associated with the project. The Department is discussing this issue with counterparts in the Department for Regional Development in Northern Ireland.
The other proposal is for a major runway extension and the provision of enhanced airport infrastructure and navigational aids. The entire project, if approved, could cost in the region of €30 million. Derry City Council has requested a joint funding arrangement between the two administrations, as applied in the case of the earlier project. Officials from my Department are participating in a steering group, comprising officials from relevant departments and agencies in Northern Ireland and representatives from the local chamber of commerce. The steering group, which was established at the request of the Secretary of State for Northern Ireland, will examine all aspects of the proposed development of the airport, including, the technical need for the proposed runway extension, the current and projected financial position of the airport company, the business case supporting the proposed capital investment and the wider issue of balanced economic development for the entire north west region. The steering group has met three times in recent weeks and a report on findings and conclusions is expected to be finalised by the end of July 2004.