Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I am delighted to be with the committee today at a time when our Covid days are, thankfully, behind us and the aviation industry has bounced back faster and stronger than any of us might have anticipated this time last year. As recognised in the current national aviation policy, our three State airports provide essential infrastructure and services to support our economic and social activities. Dublin, Cork, and Shannon airports have a critical role each in providing connectivity and facilitating economic development by enabling trade, tourism and inward investment. As Ireland's primary gateway, one of the stated objectives for Dublin Airport, given its size and geographical location, is to develop into a secondary hub, competing with the UK and other European markets for global aviation services. Given their locations, Shannon Airport and Cork Airport also hold strategic importance and are linked to two important tourism offerings: the Wild Atlantic Way and Ireland's Ancient East, and the policy recognises their role in developing as key tourism and business gateways for these regions.

The Government recognises the important supporting role our smaller regional airports - Ireland West Airport Knock, Kerry and Donegal airports - play in terms of connectivity to our regions. National policy on regional airports is designed to optimise conditions for regional development and connectivity. We all recognise the important roles airports play in the economy of the regions and nationally, and the Minister, Deputy Ryan, already referred to their importance from the perspective of tourism employment regionally. In line with this objective, the capacity of airports to handle scheduled passenger services is fundamental to the regional airports programme. Following a public consultation undertaken by my Department in 2019, the Regional Airports Programme 2021-2025 was developed and published in February 2021. As with previous programmes, supports, which are bound by the limits of relevant state aid rules, are limited to regional airports that handle fewer than 1 million annual passengers. A key difference in the new programme is the broadening of its capacity to encourage emissions reduction and climate resilience at the airports. While the focus of funding under this programme remains primarily vested in safety and security, the scope was broadened to include projects with sustainability objectives to help mitigate the impacts of aviation on the environment and to help facilitate the sustainable growth of the sector. Many of the projects supported to date under this new programme have incorporated valuable climate benefits, such as the replacement of vehicles at our airports with more efficient, low-emission equivalents, the replacement of airfield and external lighting with LEDs, and the upgrade of electrical infrastructure at airports, bringing about energy efficiencies. The planning and implementation of solar photovoltaic systems has also been supported, providing airports with the means for electricity generation.

The programme also supports a public service obligation, PSO, air service between Donegal and Dublin. As the Minister mentioned, the Government has maintained a strong commitment to the aviation sector, both throughout the Covid-19 pandemic and as recovery and growth of connectivity across the sector continues. In addition to supporting Donegal, Knock and Kerry airports under the regional airports programme last year, both Shannon and Cork airports were also supported under a one-year Covid-19 regional State airports programme. A combined total of €45 million was provided under these programmes in 2021.

This year, the Government has provided €46 million under the regional airports programme. This funding will continue to support Shannon, Cork, Donegal, Knock and Kerry airports. On 19 April, I was pleased to announce almost €16.4 million in capital supports to airports under the programme. This was followed by my announcement this week of more than €21 million in operational supports to airports. This funding contributes to the operational costs associated with air traffic control, fire services and security.

Funding under the programme in 2022 also continues to support public service obligation, PSO, air services between Donegal and Dublin. Earlier this year, I was pleased to announce the awarding of a new PSO air services contract on this route. The twice daily two-way air services, facilitating same day return trips from Donegal, and further onward international connectivity from Dublin Airport, marks the Government’s commitment to ensuring continued connectivity to this region for the next three years.

The Government has sustained these substantial high level supports with a total package of €36 million announced for eligible regional airports in budget 2023. Funding of €30 million will be provided in 2023 under the programme to support Shannon, Ireland West Airport Knock, Donegal, and Kerry airports along with the Donegal to Dublin PSO route. The level of investment will continue to support airports’ growth next year, beyond that experienced this year following the lifting of travel restrictions in March.

While not eligible for supports under the regional airports programme in 2023, given that passenger numbers are on target to exceed 2.1 million by the end of 2022, in recognition of the important role of Cork Airport to the economy of the south region and nationally, capital funding of €6 million will be provided to Cork Airport in 2023. This funding will support the commencement of a significant security screening project at Cork Airport next year. This funding is consistent with the programme for Government action to deliver capital programmes required to support services and ensure safety at our State and regional airports.

The primary aim of the Regional Airports Programme 2021-2025 is to provide targeted funding to Ireland’s smallest airports, that is, those that provide connectivity and handle fewer than 1 million passengers annually. In order to consider how the programme is currently delivering on its objectives, primarily in the context of supporting balanced regional development, the programme provides for the mid-term review to be complete by the end of 2023. As the committee is aware, I recently announced that I had asked my Department to commence this mid-term review.

In addition to considering how the programme is currently delivering on its objectives, the mid-term review will also explore how international connectivity and services to and from the regions can be maintained and enhanced. I welcome views from interested parties on the range of issues that might be addressed in an issues paper, which will be published as part of the public consultation process. While it is open to interested parties to put forward any issues to be considered for inclusion in the upcoming issues paper, I would like to see this initial process open up the discussion with relevant stakeholders on their views on how we can boost traffic to, and utilise better, our regional airports. I would welcome views on the issues that might be raised to be submitted to my Department by the end of January. Furthermore, given the ongoing calls for the inclusion of both Shannon and Cork airports under the regional airports programme on a permanent basis, I would also welcome views on expanding the scope of the programme to include airports of up to 3 million passengers. As I mentioned, eligibility criteria of the programme currently limit aid to airports with fewer than 1 million annual passengers.

This process will give the Department a better overall picture of the full range of issues that stakeholders would like to see addressed in the issues paper that the Department will be working on in parallel. Following consideration of all views received, I will then open the public consultation with the publication of an issues paper in the first quarter of 2023. I expect the period of consultation to then be open for six to eight weeks. Next steps will then be determined, based on the range of issues raised and feedback received from the stakeholders but I expect to publish the mid-term review of the regional airports programme in the autumn.

I am looking forward to hearing the committee’s views at our session today and working together to ensure we have a vibrant aviation sector that can continue to grow in a sustainable manner.