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Dáil Éireann díospóireacht -
Tuesday, 2 Jul 1996

Vol. 467 No. 7

Ceisteanna—Questions. Oral Answers. - Airport Funding.

Austin Deasy

Ceist:

11 Mr. Deasy asked the Minister for Transport, Energy and Communications the international and regional airports in Ireland; and the grants that each such airport has received over the past five years from State funds and EU funds. [14173/96]

Seven airports in Ireland currently handle scheduled international flights. These are the three State airports at Dublin, Shannon and Cork, which are managed by Aer Rianta on my behalf, and the four privately-owned airports at Donegal, Kerry, Knock and Waterford. Two other regional airports at Galway and Sligo handle scheduled domestic flights only at present.

The nine airports received EU grants totalling £27,861,000 over the past five years. This was mainly for fixed infrastructural development at the airports, apart from grants amounting to £226,000 for the provision of catering training facilities at Shannon and a computerised flight information system at the three State airports.

The six privately owned regional airports and Shannon airport received Exchequer grants amounting to £6,628,000 over the five years for the marketing and promotion of these airports. A breakdown of the EU and State grants by airport is given in a tabular statement which I propose to circulate in the Official Report.

Airport

Grants 1992-1996

Exchequer (i)

EU

£m

£m

Dublin

13.989

Shannon

4,575(ii)

1.807

Cork

2.436

Donegal

0.363

1.660

Galway

0.277

0.046

Kerry

0.420

6.310

Knock

0.317

0.215

Sligo

0.356

0.183

Waterford

0.320

1.215

Total

6.628

27.861

(i) A further Exchequer funded marketing scheme has been approved by the Government, totalling £2.35 million over the four years 1996-99, to assist the six privately owned regional airport companies in marketing and promoting their airports, but no moneys have yet been paid under this scheme.

(ii) This figure includes £1.775 million paid to the Shannon Free Airport Development Company Ltd. in 1992 in respect of tourism and traffic development — Department of Tourism, Transport and Communications Vote. The figure does not include an allocation of £1.8 million in the Department of Transport, Energy and Communications 1996 Vote for the marketing of Shannon Airport by Aer Rianta which has not yet been disbursed.

Is Kerry Airport classified as an international or regional airport? How much has been allocated from EU funds and State funds to the Kerry Airport and the Waterford Airport?

The amounts of marketing assistance for the individual airport were arrived at in the light of current and projective financial performance and classic results for the year 1996-99. Details of the assistance which will total £2.35 billion for the six airports are as follows: Donegal received £300,000; Galway, £160,000; Kerry, £1.2 million; Knock, £250,000; Sligo, £280,000 and Waterford, £160,000. The allocations for the six airports were arrived at in the light of the current financial situation, the projected traffic results and the financial performance to the year 1999.

What about the airport in the constituency of the Tánaiste?

Kerry Airport has now a jet runway with the facilities and staff needed under international regulations for the handling of jet aircraft.

A private runway for the Tánaiste and Minister for Foreign Affairs.

All this entails significant additional costs.

Fair play to the Tánaiste.

Knock Airport, the other regional airport with full jet facilities, is profitable mainly because the Government wrote off in 1991 the £9.87 million Exchequer grant for its construction. This airport does not need as much marketing support as the other airports.

How much funding has Kerry Airport received in the past five years not only for promotion of the airport but for the construction of extensions and so on?

I will give the total amount of Exchequer grants to all airports: Dublin, Shannon and Cork received £4.75 million——

We will eventually get it.

Donegal received £363,000; Galway, £277,000; Kerry, £420,000; Knock, £317,000; Sligo, £356,000; and Waterford, £320,000.

I have the details for the past five years which I will communicate to the Deputy.

Will the Minister comment on the fact that the EU expressed grave concern about the value for money of a jet runway at Farranfore Airport in Kerry? We explained it was required for the Tánaiste and Minister for Foreign Affairs when using the Government jet. Will the Minister address this concern?

I wish to ask the Minister a much more important question. In relation to the marketing funds earmarked for regional airports, is he concerned that one can fly from Farranfore to Dublin for £49 whereas a flight from Cork to Dublin costs £89? Is it true that some of these funds are being used to reduce air fares to attract passengers, giving the airport more than a level playing pitch in terms of competition with the other international airports?

It is and will continue to be the Government's policy to support all regional airports, including Kerry and Knock airports. It is important infrastructure from the point of view of local industry and tourism. I am glad the Government is committed to supporting them.

I acknowledge the grant assistance given by the Minister to Sligo airport both this year and last year but, as he is aware, there is one outstanding issue, the question of a second subsidised daily flight to Dublin. Is he optimistic that a solution will be found and, if so, when can we expect an announcement?

I am aware that the question of a second flight from Dublin to Sligo is of ongoing concern to the Deputy. I am optimistic and look forward to making an announcement in the next ten days.

Perhaps the Minister will allow me to make the announcement.

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