Dáil Éireann Debate, Wednesday - 24 March 2021
42. Deputy Darren O'Rourke asked the Minister for Transport the way in which he plans to support the aviation sector in light of the necessary public health restrictions and the devastating impact of Covid-19 on the sector; if he plans to establish a new survival and recovery taskforce to plan and prepare to sustain and recover this important industry; and if he will make a statement on the matter. [15577/21]
View answerThe aviation sector is facing an unprecedented challenge. Most people acknowledge the need to suspend international travel at this time as part of the State's pandemic measures, but it is also recognised that this puts significant pressure on an already crippled sector. Aviation workers need financial support and protection during this time. The sector also needs a survival and recovery plan to be put in place to help it to recover when it is safe to travel again. I ask the Minister of State to outline her plans to support the recovery of the sector.
Legislation to provide for the introduction of the mandatory quarantine system recently entered into force. Contractual arrangements have now been finalised and it is the intention of the Government to commence the operation of mandatory quarantine this week. The Department of Health is leading this process, supported by officials from several Departments, including the Departments of Foreign Affairs, Transport, Justice and Public Expenditure and Reform, as well as the Department of Children, Equality, Disability, Integration and Youth and via input from the private sector.
Passengers who have been in one of the designated states within 14 days of their arrival in Ireland must complete a mandatory 14-day quarantine in a designated facility. The 14-day period of quarantine can be reduced if travellers undergo testing on arrival and again on day ten and that testing does not return a positive for Covid-19. Mandatory quarantine applies to all passengers travelling from designated states, regardless of nationality, and includes Irish citizens. The aim of mandatory quarantine is to protect the population from challenges posed by new variants of concern.
Turning to the other aspects of the Deputy's question, the Irish aviation sector is critical to the economic development of the country. It is a key enabler of international trade and business, including foreign direct investment and tourism. However, it is clear that the aviation sector in Ireland and internationally is currently experiencing the 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 approximately 80% on 2019 levels and revenue has fallen dramatically.
As the Deputy is aware, the 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 Strategic Banking Corporation of Ireland, SBCI, working capital scheme, with some of these now extended to 30 June 2021. Irish airlines and airports have availed of more than €200 million through these supports to date. Liquidity funding is also available through the Ireland Strategic Investment Fund, ISIF, pandemic stabilisation and recovery fund for medium and large enterprises.
As regards specific supports for employment, we have the employment wage subsidy scheme, EWSS, which is a key component of the Government's response to the Covid-19 crisis to support viable firms and encourage employment.
Additional information not given on the floor of the House
The scheme has been extended to the end of June 2021.
In November 2020, in recognition of the very difficult circumstances facing the aviation sector, the Government agreed a revised funding package of €80 million specifically for Irish aviation in 2021. A part of this package, comprising more than €21 million, is being provided to the regional airports programme, RAP. The new RAP, which was published on 4 February, gives funding certainty to those airports up to 2025. The airports eligible for RAP support are Donegal, Kerry and Ireland West Airport, Knock. In addition, €32 million is being provided to Cork and Shannon airports through a new one-year Covid-19 regional State airports programme.
The European Commission has approved under EU state aid rules a €26 million Irish state aid scheme to compensate airport operators for the losses caused by Covid-19 and the travel restrictions imposed by Ireland to limit its spread. This scheme consists of three measures: a damage compensation measure, an aid measure to support the airport operators up to a maximum of €1.8 million per beneficiary and an aid measure to support the uncovered fixed costs of these companies. The aid will take the form of direct grants. Airports will be invited to apply for funding under the scheme shortly. The scheme will augment the supports already in place and help the industry to maintain connectivity and make a recovery from the impacts of Covid-19. The possibility that further targeted supports may be required later in 2021 cannot be excluded, particularly in the event that restrictions on travel remain in place throughout the forthcoming summer season.
My officials and I have maintained regular contact with key stakeholders throughout this crisis. On 5 March 2021, I chaired a special meeting of the steering committee of the National Civil Aviation Development Forum, NCADF. The NCADF, which was established through a recommendation of the national aviation policy in 2016, brings together senior stakeholders in the aviation industry, mostly at chief executive level. The meeting provided an opportunity for very constructive engagement with members of the committee, together with other senior leaders from Irish aviation.
It is clear from my engagement with the aviation sector that the priority issue for all those involved in the industry is that of planning to progress, as a matter of urgency, to the reopening of international travel as soon as circumstances allow. To this end, a subgroup of the NCADF has been tasked with developing proposals for restart and recovery of the Irish aviation sector. It is anticipated that the subgroup will present its report to the steering group of the NCADF next month. The work of the NCADF will inform Government decisions on the restart and recovery of the Irish aviation sector, which will also have regard to developments at EU and international level, as well as public health advice.
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 rebound quickly when circumstances allow.
Aer Lingus today announced an expansion of its air services from Manchester. I saw a communication sent within the company which offered staff here the opportunity to move to Manchester and base themselves there on local terms and conditions, that is, Manchester terms and conditions. That is deeply concerning for those workers. It has been said that this is happening because there is such uncertainty regarding the Irish response and commitment to the aviation sector. It really indicates that those companies want a response from the Government that gives them a clear outline of what the future holds. We know Covid is very difficult, but Air New Zealand got an investment of $900 million, while Air France got €7 billion and Lufthansa got €10 billion. I ask the Minister of State to give confidence to workers in the sector that their position is secure and to outline in clear terms that a plan is in place for the recovery of the sector.
As I outlined, more than €200 million of supports has been granted to the aviation sector. The airports and airlines have had access to that funding, which includes the temporary wage subsidy schemes and other supports. As a result of the very difficult circumstances the aviation industry is experiencing, the Government agreed a revised funding package of €80 million specifically for Irish aviation in 2021. A part of this package, more than €21 million is to be provided for the regional airports programme. That gives those airports security and certainty around funding out to 2025. Airports eligible for RAP supports are Donegal, Kerry and Ireland West Airport, Knock. In addition, €32 million is being provided to Cork and Shannon airports.
It is important that I reiterate the supports the Government is providing and will continue to provide to the aviation sector. We are in regular contact with the sector and the key stakeholders about the future of the aviation sector.
I have not gone through the other measures under consideration, such as routes potentially being moved to Belfast. I mentioned the situation at Manchester Airport. I refer to the operations at Shannon and Cork airports. I raised this issue with departmental officials at a public meeting of the Joint Oireachtas Committee on Transport and Communication Networks.
I am deeply concerned in respect of the issue. Workers in the sector are deeply concerned by it. Does the Minister of State share that concern? To what degree have the Department, the Minister, Deputy Eamon Ryan, and the Minister of State, Deputy Naughton, assessed the impact of Covid on the sector? What sort of aviation sector can we expect post Covid? Has any empirical assessment been carried out in that regard? What scale of lay-offs is the Minister of State expecting? I believe everything needs to be done to support the sector, notwithstanding the challenges of Covid. For example, there are proposals in respect of a German model of support for workers that has been advocated by unions in the sector but has not been taken up.
I assure the Deputy that this issue is being taken extremely seriously at Government level. All Members understand the importance of aviation for Ireland as an island nation, including for foreign direct investment, tourism and connectivity as an island. I chaired a special meeting of the steering committee of the NCADF. My departmental officials maintain regular contact with the sector. The NCADF was established through the recommendation of the national aviation policy in 2016 and brings together all the key stakeholders within the aviation industry. That meeting provided a very constructive opportunity for that engagement around a roadmap for recovery at the appropriate time while obviously taking into account the public health measures and what is happening at EU and UK levels.
The Deputy can be assured that every necessary support will be given. We are constantly watching and monitoring this matter. There is considerable uncertainty in Europe today. The numbers of people infected with Covid-19 have increased. This is not just an Irish issue, it is a global issue. I assure the Deputy the aviation sector is critical to the Government.
