Oireachtas Joint and Select Committees

Wednesday, 29 March 2017

Select Committee on Transport, Tourism and Sport

Estimates for Public Services 2017
Vote 31 - Transport, Tourism and Sport (Revised)

3:10 pm

Photo of Shane RossShane Ross (Dublin Rathdown, Independent) | Oireachtas source

I will address the Waterford Airport issue first. On Exchequer assistance, approval in principle was granted to Waterford Airport in 2016 in respect of proposed capital investment for a total grant amounting to €1,027,500. Of this total amount, grant aid of €18,000 was paid for alterations to a building for a test centre as the project project was undertaken prior to VLM terminating its services at Waterford Airport. All other projects approved in 2016 are frozen until the future position on scheduled air services is clarified. None of thee projects can be commenced until that time.

The 2016 grant allocations for Waterford Airport will be confirmed only when a commitment to resume scheduled passenger services by a suitable air carrier has been secured by the airport authorities. Payment of €1,020,215 in grant support was made to Waterford Airport in December 2016 towards eligible safety and security operational costs. In assessing the airport's application for this operational support the Department had regard to the relevant costs incurred throughout the full year, not just the period to June when scheduled services ceased at the airport. This was in recognition of the efforts being made to secure a replacement carrier and the need to ensure the airport remained operational and ready to serve the requirements of such a carrier and its passengers.

As the Deputy probably knows, Waterford Airport is still looking for a carrier. VLM withdrew last year and that is obviously the reason the grants are frozen. They are frozen until the airport finds a carrier. I was at the airport about four or five weeks ago when I met the board. It assured me it was at an advanced stage of negotiations with a carrier, whatever that quite means, and that it was very optimistic that it would find one. Obviously, the release of the money is dependent on the airport finding a carrier.

While Waterford Airport has been given every opportunity under the regional airports programme to secure a placement service, Exchequer support cannot continue indefinitely without some visible path towards viability. It is proposed, therefore, that the position be kept under review in conjunction with Waterford Airport as it would be dquestionable whether it would be the best use of taxpayers' money and difficult to continue the provision of support into 2017 without confirmation of a resumption of air services.

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