I will set out the factual position and then outline the policy context surrounding these issues. The rebates of Aer Rianta airport charges from 1989 to 1994 were not regarded as State aids and, accordingly, were not reported to the European Commission.
As far as other forms of assistance to Ryanair are concerned, from inquiries my Department has made in the Departments of Tourism, Sport and Recreation and Enterprise, Trade and Employment, I understand that Ryanair up to the end of 1994 received tourism marketing grants totalling £1,062,000 under the Operational Programmes for Tourism 1989-93 and 1994-9. These were ERD funds from programmes which were generally available for tourism promotion purposes. Therefore, they did not constitute State aid.
I also understand that FÁS provided £45,600 to Ryanair in the years 1991-3 under the FÁS training support scheme and a further £120,900 in 1993 and 1994 under the FÁS job training scheme. Such moneys are generally available from FÁS to industry for training support. I also understand it was announced in late 1996 that Ryanair in the form of its subsidiary Ryanair Direct will receive assistance of £2.2 million over the years 1997-9 from Forbairt for the establishment of a new teleservice/tele-marketing business in Dublin. This type of support to industry is widely available and I understand it generally comes under an exemption agreed with the European Commission from the State aid rules. In line with this exemption the assistance to Ryanair Direct was not required to be reported to the Commission.
Regarding the allocation of routes to Ryanair and Aer Lingus in 1989, the position is as follows. The then Minister for Tourism and Transport announced in September 1989 a Government policy for aviation. The Minister granted exclusive rights to Ryanair in 1989 on routes from Dublin to Luton, Stansted, Liverpool and Munich. At the same time it was decided to grant Aer Lingus sole rights on the routes from Ireland to Heathrow and Gatwick and from Dublin to Manchester and Paris. The decision applied for a period of three years up to the end of 1992.
With regard to the Aer Rianta rebate schemes, these have been an important element in the company's efforts to grow traffic through the three State airports. The schemes contribute towards keeping access transport costs into and out of Ireland to a minimum and have helped to underpin tourism employment and employment growth generally. The success of the schemes to date can be seen from the unprecedented traffic levels and the highest ever passenger numbers.
With regard to the two airline policies introduced for three years in 1989, these arrangements were designed to focus aviation policy on a strengthening of the Irish presence on routes to and from Ireland rather than having two Irish air carriers, namely Ryanair and Aer Lingus, actively pursuing traffic on identical routes. European Union aviation policy has since moved on to the position where all airlines are free to compete on all routes without restriction on capacity or fares.
On the value of discounts availed of by Ryanair at Cork, Dublin and Shannon between 1989 and 1994, the figures are as follows: 1989, £500,000; 1990, £0.86 million; 1991, £1.2 million; 1992, £1.99 million; 1993, £1.92 million and 1994, £2.08 million.
