Airport Development Projects

Dáil Éireann Debate, Thursday - 26 June 2014

Thursday, 26 June 2014

Questions (3)

John Halligan

Question:

3. Deputy John Halligan asked the Minister for Transport, Tourism and Sport if he will provide an update regarding the €400,000 grant which his Department pledged towards a €150 million extension of the runway at Waterford Airport last August, subject to the airport itself raising a further €850,000 through private sources and local authorities; if all necessary moneys have now been raised to allow work to proceed; if the departmental grant of €400,000 has already been drawn down, and used for the compulsory purchase order of 18 acres of land required to facilitate the extension; the timeframe in which he expects the extension works to be completed; what will happen to the departmental grant if the €850,000 is not raised by the airport; and if he will make a statement on the matter. [27416/14]

Oral answers (6 contributions)

Deputy John Halligan

I seek an update on the €400,000 grant which his Department pledged towards a €150 million extension of the runway at Waterford Airport last August. Will the Minister clarify if the departmental grant of €400,000 has already been drawn down and used for the compulsory purchase order of 18 acres of land required to facilitate the extension?

Deputy Leo Varadkar

Exchequer support for infrastructural projects at the regional airports is confined to safety and security related projects under the Regional Airports Programme 2011-2014. The projects being funded at Waterford Airport under the current programme, through the CAPEX scheme, include runway end safety areas, RESAs, which involve the purchase of land to facilitate this work, as well as boundary fencing and the installation of other safety related equipment.  Other developmental projects, such as the extension of the runway, do not come within the remit of the CAPEX scheme.

I understand that the land purchase for the runway end safety areas has been delayed and that the CPO process has been referred for arbitration on 26 August 2014. Once the arbitration has been successfully completed the land purchase and the work can be undertaken later this year, but that is contingent on that arbitration being completed successfully.

Development projects, such as runway expansion, are entirely a matter for Waterford Airport.  I understand that the board and management of the airport are engaged in a fund-raising exercise with local authority and private sector sources in relation to this.

Deputy John Halligan

On countless occasions I have raised the IDA's abysmal record in attracting foreign investment into Waterford. It is widely recognised that one of the key deficiencies in the south east when it comes to companies locating there is the lack of a university and the underdevelopment of Waterford Airport. The Minister's Department pledged the €400,000 grant towards the extension in 2011 only to be frozen after Aer Arann's decision to pull out of Waterford. I understand the current funding is subject to a further €850,000 being raised by Waterford County Council and private investors. This infrastructure, while limited, could be vital to Waterford Airport attracting a direct service to London which was previously used by more than 80,000 passengers per year. As it stands Flybe has committed to Waterford Airport until the end of the year, at least, after which the airport's future is unclear. This infrastructure would pave the way for additional expansion into the future to bring all types of jet aircraft into Waterford, which can only be beneficial to a city already under tremendous economic pressure.

Deputy Leo Varadkar

We are all very keen that Waterford Airport should secure flights to London again. There are flights to Birmingham and Manchester. Deputy John Deasy told me yesterday that the load factors on those are improving considerably, which is encouraging. Whether the RESA will secure a flight to London is not clear. Some people say it is like a chicken and egg situation - which one comes first?

We might find out when the development is complete that it is still not possible to get a London flight, which would be disappointing. The Department's commitment to the airport in Waterford remains strong and should it be able to sort out the CPO and come up with the agreed matching funds, we are prepared to assist it.

Deputy John Halligan

I do not need to remind the Minister of the critical nature of this infrastructure for the region. A major report prepared in 2010 found that Waterford Airport supports up to 560 jobs, with 85% of businesses in the south east stating that direct access to the region was crucial to their operations. The Minister for Jobs, Enterprise and Innovation recently admitted that the IDA is having trouble attracting foreign direct investment to Waterford. Our high unemployment rate underpins this. The lack of a proper runway and the absence of a London route is a pivotal factor in the difficulty in attracting investment. If the matching funds of €850,000 cannot be found - I am not saying that will be the case but it is important to get clarity - what position would the Government take in regard to its promise to provide €400,000 in funding? Would it be able to increase its funding?

Deputy Leo Varadkar

We are constrained in how we can support regional airports by EU state aid rules and by our own budget, which is capped at €12 million per annum for all of the regional airports. Waterford has received considerable amounts of money in recent years, particularly under the operational expenditure heading, because of the losses it has been making. I am advised that the airport is confident it can raise its share of the funds and I do not see any impediment to getting this done, other than dealing with the CPO.