On 30 June, 2006 my Department launched two new schemes to provide Exchequer funding for the regional airports. The Capital Expenditure Grant Scheme involves a budget of €65 million in respect of assistance for capital projects at these airports in the period up to the end of 2010. The Core Airport Management Operational Expenditure Subvention Scheme provides for financial assistance, calculated on an annual basis, towards operational expenditure incurred in the provision of core airport services which cannot be fully recovered from the normal revenue streams otherwise available to the regional airports.
While informal discussions with the relevant Commission officials suggested that the two schemes were fully in compliance with the guidelines, in the interest of legal certainty they were formally notified to the Commission for definitive approval. I am now advised that the operational expenditure subvention scheme is considered by the Commission to be exempt from the need for such notification and consequently, does not require formal approval and may proceed as planned. In the case of the capital grant scheme, the Commission decided on 26th September to approve the scheme as submitted.
Meanwhile, all of the regional airports have submitted applications for funding under the new schemes. These will be assessed by my Department with the assistance of expert advice and I expect to be in a position to announce the allocations to the individual airports in November.