Dáil Éireann díospóireacht -
Thursday, 20 Nov 2003

Vol. 575 No. 1

Ceisteanna – Questions. Priority Questions. - Regional Airports.

Paul Connaughton

Ceist:

4 Mr. Connaughton asked the Minister for Transport his views on whether the proposed break up of Aer Rianta will have devastating consequences for regional airports; if so, the names of such airports; the State subsidy paid to each from 1997 to 2002, inclusive; if he has had an evaluation already done on the consequences such a break up would have on regional airports; if there will be or could be a problem in relation to competition law with such subsidies after the break up of Aer Rianta; and if he will make a statement on the matter. [27533/03]

Mr. Brennan

Apart from the three State airports at Dublin, Shannon and Cork, there are six smaller regional airports at which airlines operate scheduled passenger services. These are the regional airports in Kerry, Sligo, Galway, Mayo, Donegal and Waterford. My Department supports the regional airports with capital grants for essential upgrade of airport infrastructure and facilities and grants for marketing, safety and security measures by the airports. The details of the grants paid to the regional airports by my Department over the period 1997 to 2002 under both of these schemes are set out in the following tabular statement:

Airport	Marketing/Safety/Security Grants	Capital Grants
	€	€
Donegal	896,610	831,780
Galway	795,034	2,382,570
Knock	1,806,238	1,475,871
Kerry	2,558,550	838,809
Sligo	877,560	835,933
Waterford	1,155,971	531,290

Under the relevant EU legislation, there also exists a framework for supporting the provision of air services based on defined public service obligations, PSO. Our PSO regime currently facilitates the operation of air links between Dublin and the regional airports in Kerry, Galway, Sligo, Knock, Donegal and Derry. However, as the Deputy is aware, Exchequer support for the PSO air services is paid to the air carriers concerned and not to the airports.

I do not believe that the restructuring of the State airports, decided upon by the Government in July last, will have devastating consequences for the regional airports. The new arrangements for the State airports will facilitate greater competition for new business among all Irish airports to the extent permitted by market dynamics. It will, of course, be important to ensure that, as far as possible, a fair competitive environment exists having regard to the scale of operations at the smaller regional airports and to the level of Exchequer support for such airports in the future.

Mr. Connaughton

The Minister has treated the regional airports with a certain amount of disdain since he started his solo run and announced the break-up of Aer Rianta. No evaluation has been carried out examining what would happen at regional airports following the break-up of Aer Rianta. However, I understand that a committee is currently considering this. Did the Minister get advice on what the outcome would be for regional airports before he announced the break-up of Aer Rianta? Will he guarantee the House that irrespective of what happens with the break-up of Aer Rianta, the Government can do what it wants as regards providing State support to any or all of the regional airports and will not have to seek approval from the EU?

Mr. Brennan

The facts speak for themselves. In 1997, €5 million or €6 million was invested in regional airports whereas today we are investing more than €20 million in them. While these are privately owned airports, they are being substantially funded.

Mr. Connaughton

My question was not about what happened in the past, it is about what is going to happen.

Mr. Brennan

I will deal with that. Regional airports are in receipt of substantial State funds and, combined with the good management they are now under, they are in a strong position to meet any competition they might face. I do not see how Shannon Airport having independence, regional autonomy and fresh leadership would be a great threat to regional airports.

Mr. Connaughton

The Minister should talk about the small airports.

Mr. Brennan

I will. The Minister of State has visited most of the regional airports and met with their management. They have told him that they are optimistic about the future and have good funds. While a number of them are in profit, some are finding it difficult. Between them they have 27 scheduled flights. They will receive almost €10 million in grant-aid under the NDP in the 2000-03 period. The airports are well funded, have good flight schedules and are well managed. I see no reason why they cannot continue to do well.

Mr. Connaughton

The Minister has failed to answer the central part of my question that refers to State subsidies. Will he give an undertaking that he will not have to go to Brussels in order to pay State subsidies in the future?

Mr. Brennan

What I can say is that—

Mr. Connaughton

Can the Minister give such an undertaking?

Mr. Brennan

The regional airports are in a special category. The EU understands, appreciates and approves of funding for regional airports. The EU enthusiastically supports the PSO regime.

Mr. Connaughton

Will the Minister of the day have to seek permission from the EU to make such payments?

Mr. Brennan

All I can tell the Deputy is that the EU is as supportive of regional airports as we are.

Mr. Connaughton

The Minister is not answering the question.

An Ceann Comhairle

Allow the Minister to answer the question.

Mr. Connaughton

He is not answering the question.

Dr. McDaid

What is the question?

Mr. Brennan

I am fully supportive, as is the EU, of continuing to allocate PSO money to regional airports at a high level. If the Deputy is asking me what policy will be in ten years' time, I do not know the answer.

Mr. Connaughton

I am not satisfied with that response.

Mr. Naughten

The Minister does not know what policy will be in ten months' time.