Airport Development Projects

Dáil Éireann Debate, Wednesday - 1 October 2014

Wednesday, 1 October 2014

Questions (5)

John Halligan

Question:

5. Deputy John Halligan asked the Minister for Transport, Tourism and Sport further to Priority Question No. 3 of 26 June 2014, if the land purchase for the runway and safety areas at Waterford Airport had been delayed and the CPO process had been referred for arbitration on 26 August 2014; the outcome of the said arbitration; if it has been successfully completed; if the land purchase is now scheduled to be undertaken; if so, when will the CPO process begin; and if he will make a statement on the matter. [37073/14]

Oral answers (6 contributions)

Deputy John Halligan

Further to my previous priority question to the then Minister for Transport, Tourism and Sport, Deputy Varadkar, which was for answer on Thursday, 26 June last, he had indicated that the land purchased for the runway and safety areas of Waterford Airport had been delayed and that the CPO process had been referred for arbitration on 26 August. Can the Minister confirm to the House the outcome of the said arbitration? Has it been successfully completed and is the land purchase scheduled to be undertaken? If so, when will the CPO process begin?

Deputy Paschal Donohoe

In November 2011, under the regional airports programme capital expenditure grant scheme, funds were allocated by my Department to Waterford Airport for the construction of a runway end safety area, RESA, which involves the purchase of land at the southern end of the airport to facilitate this work.

As indicated previously, the CPO process for the purchase of this land is already under way. As part of this process, the matter was referred for arbitration with a hearing scheduled for 26 August 2014. That hearing was postponed for reasons not relating to the airport and a new date has yet to be set.

Waterford Airport is making every effort to conclude the arbitration process. However, there are steps to be carried out under the CPO process which are outside their control. Once completed, the airport has confirmed that the land purchase and consequent creation of the RESA will be undertaken without delay.

Deputy John Halligan

I listened with great interest to an interview with Mr. Michael O'Leary of Ryanair on Today FM last week in which he was asked why Ryanair does not fly from Waterford Regional Airport. By the way, that is the airport which launched the airline, Ryanair. It will come as no surprise to the Minister that Mr. O'Leary replied that the runway is too short for commercially viable jets. For instance, it is not capable of landing a Boeing 737, of which model the whole of Ryanair's fleet is comprised.

I asked the previous Minister the status of the compulsory purchase order of the 18 acres of land to facilitate the €150 million extensive works at Waterford for which the Department pledged upwards of €400,000. I note he previously told me that the board and management of the airport and the local authority had been engaged in a fund-raising exercise with the private sector to raise the necessary balance of €850,000. Has the Minister any news on that? Has that process advanced?

Deputy Paschal Donohoe

I am aware of the challenges Waterford Airport faces. Its passenger numbers last year were 28,169, which is a notable decrease on where they had been historically. Currently, the airport operates two services a day to Birmingham and Manchester with Flybe. I also note that it has suffered the withdrawal of some services, which provides the background to why this issue is being examined.

Waterford Airport has advised my Department that the airport board is committed to providing the necessary funds from local sources to fund the laying of an additional 150 m of runway and indications we have received from the chairman are that its target is €500,000 in relation to all of this. In light of the efforts that are being made in this matter by the airport board and by private sector stakeholders and local authorities in the region, my Department has confirmed to the airport our commitment to fund this piece of work and the associated purchase of land. As background, I should say that between 2013 and 2014 more than €900,000 in Exchequer funding has already been allocated to the airport for safety and security related projects.

Deputy John Halligan

What is vital in securing the long-term viability of the airport is a direct service to London. While this piece of infrastructure is limited, it will facilitate direct flights to London.

I note that a major report prepared not so long ago 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 for their operations. Based on the circumstances in Waterford which has a high unemployment rate and our attempt to attract businesses into Waterford in the long term, it is crucially important that all of the infrastructure, particularly the airport based on the assessment by businesses in and outside Waterford, is upgraded and, essentially, looked after by the Government.

Deputy Paschal Donohoe

I re-emphasise to the Deputy that €900,000 was provided via the Exchequer to the airport over recent years. On the specific purchase of land to which he refers, I understand that due to some of the difficulty that was involved in this land the local authority played the leadership role in trying to facilitate this through the use of a compulsory purchase order. That compulsory purchase order was then referred to arbitration, as is the right of anybody involved in that process. My information is that on 26 August an arbitration meeting was due to take place in this regard and for a number of reasons, that meeting was not held. On completion of this arbitration process, which must be respected because every stakeholder and party involved has a right to initiate it, the airport has confirmed that the land purchase and consequent creation of the piece of infrastructure to which we refer will be undertaken.