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Covid-19 Pandemic

Dáil Éireann Debate, Wednesday - 24 March 2021

Wednesday, 24 March 2021

Questions (100)

Donnchadh Ó Laoghaire

Question:

100. Deputy Donnchadh Ó Laoghaire asked the Minister for Transport the actions he is taking to protect aviation workers at Cork Airport; and if he will consider using the connectivity fund for this purpose. [15511/21]

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Written answers

In 2015, the proceeds from the State's disposal of its 25.1% shareholding in Aer Lingus were invested in a new ‘Connectivity Fund’ as a sub-portfolio of the Ireland Strategic Investment Fund (ISIF). The Minister for Finance sought Oireachtas approval for the proceeds to be paid into this fund in accordance with Section 46(2) of the National Treasury Management Agency (Amendment) Act, 2014. The management and control of the fund is a matter for the NTMA.

The Irish aviation sector is currently experiencing its most challenging crisis in its history. Many analysts are predicting that it will take several years for the sector to return to 2019 levels of activity. Traffic in 2020 was down around 80% on 2019, and revenue has fallen away dramatically as COVID-19 related restrictions on international travel continue to heavily constrain passenger traffic.

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. These 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, with some of these now extended to 30 June 2021. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises.

Support for aviation workers is currently tied to the Governments general schemes to support all workers impacted by COVID-19. However, it cannot be excluded that targeted supports may be required later in 2021, particularly in the event that restrictions on travel remain in place throughout the forthcoming summer season.

As regards supports specifically targeted at 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 European Commission has approved, under EU State aid rules, a €26 million Irish state aid scheme to compensate airport operators, including Cork Airport, for the losses caused by COVID-19 and the travel restrictions imposed by Ireland to limit its spread. This scheme 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.

Question No. 101 answered with Question No. 82.
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