Dáil Éireann Debate, Tuesday - 23 March 2004
424 Ms B. Moynihan-Cronin asked the Minister for Transport if it is proposed to review the PSO to regional airline services following a recent report by a company (details supplied); his plans for the future State subsidisation of these services; and if he will make a statement on the matter. [8304/04]
Amharc ar fhreagraThe report to which the Deputy refers is the review of air services supported by the essential air services programme — public service obligation, PSO, routes. DKM Economic Consultants were commissioned by my Department to undertake the review under the Government's expenditure review initiative.
EU Council Regulation (EEC) No. 2408/92 allows member states to establish a PSO in respect of scheduled air services to an airport serving a peripheral or development region where such air services are considered essential for the economic development of the regions concerned and where air carriers are not prepared to provide such air services on a commercial basis. In accordance with this EU regulation, the Government has established PSOs on six routes linking Dublin Airport with the airports in Kerry, Galway, Knock, Sligo, Donegal and Derry. The total cost of subvention amounts to over €20 million per annum. The purpose of the DKM review was to evaluate the degree to which the objectives of the PSO air service programme warrant the ongoing allocation of Exchequer support and to examine the scope for alternative policy or new approaches to achieving the objectives on a more efficient and cost effective basis.
I am currently exploring ways of restructuring PSO specifications and contractual arrangements to ensure that, in the long term, an appropriate level of air access to the regions can be facilitated on a cost-effective basis, within the annual Estimates provision, while also encouraging maximum commercial initiative on the part of the regional airports and air operators. I intend to bring proposals to Government later this year and to re-launch a revised specification for services on all six routes to commence in mid-July 2005.
