Brendan Griffin
Question:25. Deputy Brendan Griffin asked the Minister for Transport his views on a matter (details supplied) regarding the Irish aviation sector; and if he will make a statement on the matter. [10601/21]
View answerThursday, 25 February 2021
Questions (25)
Written answers
The aviation sector is one of the most affected by the COVID-19 pandemic, with all airlines seeing a severe depletion of revenue and facing various degrees of financial challenge. The knock-on implications for our airports have also been severe.
My officials and I have maintained regular contact with key stakeholders throughout this crisis, and Government has put in place a range of supports for businesses, including the Aviation sector. The supports include the wage subsidy scheme, waiving of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises.
Budget 2021 provided for €8.5 billion in funding for public services to address the challenges of COVID-19, and extended the Employment Wage Subsidy Scheme into 2021. A Recovery Fund is also to be established to stimulate demand and employment and is to be funded to over €3 billion.
In November 2020, in recognition of the very difficult circumstances facing the aviation sector, the Government agreed a revised funding package of €80 million for Irish aviation in 2021. A part of this package, over €21 million, is being provided to our Regional Airports Programme (RAP). The new RAP, published on 4 February, gives funding certainty to those airports up to 2025. Those airports eligible for RAP support are Donegal, Kerry and Ireland West (Knock). Additionally, €32 million is being provided to Cork and Shannon Airports through a new one-year COVID-19 Regional State Airports Programme. Both of these programmes have been created in line with EU State Aid rules.
The Government’s package for aviation also included a proposal for an airport charges rebate scheme, among other schemes, to be taken forward in 2021. A budget of €26 million was earmarked for these schemes, which are subject to the approval of the European Commission. Good progress is being made in this respect and, if approved, these schemes will augment the supports already in place and help the industry to maintain connectivity and to make a recovery from the impacts of COVID-19.
The Government is fully alert to the devastating impact of the global pandemic on international travel and values the critical role that aviation plays in the Irish economy. It is expected that it may be some time before it is possible to permit a large-scale return to air travel, but we remain committed to ensuring that the aviation sector can maintain the necessary core capability to retain strategic connectivity, and to quickly rebound when circumstances allow.
Government’s priority remains to best protect the health and safety of all those living in Ireland.