Michelle Mulherin (Mayo, Fine Gael)
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I am raising the application that is being made to the European Commission for up to 90% funding for capital works at Ireland West Airport Knock. I want to know whether a special case has been made in that regard and about the timeframe involved. Thankfully, those involved with the airport are developing new transatlantic flights and trying to open that market. For that reason, they need capital investment immediately. The apron and the runway need to be extended to cater for the traffic at the airport. All of this needs to be done to put the airport on a self-financing footing. The airport is of strategic importance because it serves the west and north west regions and caters for approximately 700,000 passengers each year. In recent years, the authorities at the airport have been explaining the case for the expansion of the airport so that it can grow further. Passenger numbers have been maintained at 700,000. The airport would need to have more than1 million passengers in order to become self-financing. It wants to grow. It is always on the lookout for more business. It is very dynamic and efficient.

The west is the only region in the country that is not serviced by motorways, high-speed trains, or developed cargo and passenger deep-water ports. It is a peripheral region in Ireland and in Europe. Ireland West Airport Knock is not like any other regional airport. Most of the other regional airports, with the exception of Donegal Airport, are located in the shadows of the State airports - Cork Airport, Shannon Airport and Dublin Airport. Above all, with pride we know and declare that Ireland West Airport Knock is the people's airport and, in this regard, is a different creature from any of the other airports in the State. It is very dear to the people of the west of Ireland, who have personally invested a lot in it. The airport is run by a not-for-profit trust which was asked some time ago to take responsibility for running the airport while stimulating enterprise and jobs. It has a very broad remit. Its broad objective is to bring economic activity and growth into the region. To tell the truth, the region would be lost without the airport.

It is key to our future development. More than two and half years ago, a joint study group involving Ireland West Airport Knock and the Department of Transport, Tourism and Sport completed its in-depth review of the strategic options for the airport. In terms of capital investment, a commitment was given to Knock that 90% funding would be made available for it to carry out these crucial works. It does not want to look for money from the State forever; it wants to be self-financing after 2024. On that occasion last summer, we were told that the regional airports programme had been approved by the European Commission. That is very welcome, but it will only give Knock 75% funding when it needs 90% funding. We were told at that juncture that a further business case would have to be made for Knock. As I have outlined before, this investment is critical to the growth and development of the airport and its future sustainability. I would like to know what progress has been made, because time is of the essence.

I welcome the €600,000 OPEX funding that was announced before Christmas. This will help Knock balance its books for last year and cover operational losses for the year; its operational losses will remain until it can become self-financing. I will briefly restate that Ireland West Airport Knock should not have to compete with other regional airports for funding from the same pot. Knock is in an entirely different league and needs to be recognised. I also suggest that in our national aviation policy, Knock should be given recognition for its strategic importance and should not be treated the same as other regional airports, because it is most definitely not the same.

Seán Sherlock (Cork East, Labour)
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I am taking this Topical Issue on behalf of the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, who apologises for being unable to attend this afternoon.

The Exchequer provides funding supports to the four regional airports in Donegal, Kerry, Waterford and Knock under the regional airports programme operated by the Department of Transport, Tourism and Sport. Over the past decade, Knock has received almost €21 million in Exchequer support in operational and capital grants under the OPEX and CAPEX funding schemes administered by the Department.

In August last year, the European Commission gave its approval for the Department's new regional airports programme, which takes account of the recommendations of the Knock study group and the subsequent decision by Government to continue funding supports to the four regional airports. That decision recognised that the regional airports should be given the opportunity beyond 2014 to grow to a viable, self-sustaining position, particularly considering the contribution that they make to their respective regional and local economies. This was also acknowledged in the new national aviation policy that was published last August. The Deputy will be aware that, under new EU state aid guidelines of 2014, the maximum level of aid permissible for capital projects at airports with fewer than 1 million passengers per annum is 75%. The EU guidelines recognise, however, that airports in this category may face difficulties in sourcing the balance of at least 25%. Subject to a case-by-case assessment, an aid rate in excess of 75% may be justified in exceptional circumstances. In such a scenario, the Commission has indicated that a business case justifying any proposed higher aid rate would have to be approved by it and must be able to demonstrate the airport's inability to proceed with the proposed investment at the 75% aid rate. Under a new aspect of the regional airports programme called the public policy remit, all of the regional airports, including Knock, are eligible for grant assistance up to 90% towards the cost of capital investments in the areas of safety and security. There is also a PPR scheme which assists with grants of up to 100% of the operational costs of the airports in these two areas. Last year, under the first year of the new programme, Knock received almost €1.2 million in grant supports from the Department and the latter has already begun engaging again with all four airports on their future requirements for capital grant assistance.

The Minister is, of course, aware that Knock has indicated that it will require a higher grant rate than the maximum 75% permitted under the EU guidelines for certain major capital projects that are planned at the airport over the coming years. The ongoing engagement with Knock continues to address this issue, as well as the funding available to the airport under the new PPR schemes.

Michelle Mulherin (Mayo, Fine Gael)
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I am a bit shocked by the Minister of State's response. I cannot believe the Department has not made an application for 90% funding for Knock airport at this stage. A commitment was made two and a half years ago under the Ireland West Airport Knock-Department of Transport, Tourism and Sport study group, chaired by Deputy John O'Mahony, to give 90% funding. Last August, I was somewhat disappointed when we were told that the funding was actually 75% on approval of the regional airports programme by the European Commission with the opportunity to make a special case to seek 90%. I am now told that the conversation is ongoing. There is an idea that the ongoing engagement with Knock continues to address this issue, but it is not being addressed. This is two and a half years down the line. Last summer we were told that a 90% application was required, and the board at Knock airport is ready, willing and able to do whatever is required, including bending over backwards, to get such an application before the Commission.

What is going on in the Department of Transport, Tourism and Sport? I can never seem to get any answers. I have submitted parliamentary questions and freedom of information requests to find out what communication there has been between the Department and the Commission on Knock. It seems there has been very little. I am sad to say that the Minister of State has given another standard-issue answer. Knock is being treated like every other regional airport, but it is not the same. I mean no disrespect to every other regional airport in the country. Ours is the only region that does not have another State airport. It seems to me that this has been going against Knock in terms of its treatment by the Department and has been happening since its inception or conception, whatever one wants to call it. Will the report and agreement signed up to by the Department be honoured? The Department signed up to the 90% at the time. It can say that the European Commission stipulated that 75% could be paid for capital works.

Seán Sherlock (Cork East, Labour)
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I note the points the Deputy has made. I do not have an answer to that question, but I am sure departmental officials and the Minister's staff are watching proceedings and I am sure the Deputy will approach the Minister directly on this issue. For the purpose of replying, I will reiterate that I do not think it is a case of ruling out the possibility of 90% funding. I do not think that was explicitly stated in the answer I gave. I will read again from the answer:

The Minister is, of course, aware that Knock has indicated that it will require a higher grant rate than the maximum 75% permitted under the EU guidelines for certain major capital projects that are planned at the airport over the coming years. The ongoing engagement with Knock continues to address this issue, as well as the funding available to the airport under the new PPR schemes.

In my interpretation of the answer, that does not necessarily rule out the possibility of the potential for 90% funding. I do not have a-----

Michelle Mulherin (Mayo, Fine Gael)
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The Minister of State is correct. They have known for the past two and a half to three years that 90% funding is required but they are not doing anything about it.