Jimmy Deenihan (Kerry North, Fine Gael)

Kerry Airport is one of the main drivers of the County Kerry economy. Some 148 people are employed at the airport, 66 of whom are employed directly, a further 84 in car hire and taxi services and the bar and restaurant franchise and a further 30 are Ryanair staff. It also supports thousands of jobs in the county where the live register for August shows unemployment at 16,029 or 17% of the workforce. Last Thursday the people of Kerry were shocked when Ryanair announced its withdrawal of the PSO contractual obligation it entered into with the Minister and the reduction in flights from Kerry to Dublin from three to one. If the current PSO payment of €1.75 million, which goes directly into the running of the airport, is withdrawn the airport's future viability will be seriously compromised.

According to a comprehensive response to the Department of Transport on the operation of the PSO at Kerry airport by Dr. Sean Barrett, if the airport was to close the social welfare payments per year for the staff made redundant would be €2.585 million, which is 48% more than the PSO payment of €1.75 million per year. Dr. Barrett also pointed out that 432,000 passengers who use Kerry Airport currently pay €1.9 million to €2 million in airport tax. The €10 tax is paid by 148,000 departing passengers to the United Kingdom, Germany, sun destinations and ad hoc overseas charters, resulting in Exchequer revenues of €1.48 million. The passengers on the Dublin-Kerry route pay €2 departure tax at both Kerry and Dublin, yielding Exchequer revenues in excess of €500,000. The airport taxes paid on Kerry trips are thus 14% greater than the amount paid in the PSO to Kerry Airport.

The value for money report carried out by the Department of Transport on regional airports in regard to PSOs, which I am aware will be considered by the Government shortly, will show that Kerry Airport is in a very good position as regards value for money. In 2009, outbound flights from Kerry to Dublin facilitated 56,000 passengers. The new arrangement proposed by Ryanair would result in just one flight from Kerry to Dublin each day, leaving Kerry at 9.45 a.m and returning at 4.45 p.m. If one wants to travel from Dublin to Kerry to do business or for any other purpose by air it could result in two overnights in Kerry unless one has an early morning meeting at the airport.

The possible closure of Kerry Airport reduces its connectivity, not just on the United Kingdom and German routes but to Dublin and onward connections through Dublin. From Dublin and the connecting points Kerry would become a significantly more remote place, with enhanced accessibility costs. When people decide to stay away from Kerry and relocate their business and tourism elsewhere, output in the Kerry economy will be drastically affected and unemployment and emigration will rise.

In conclusion, I call on the Minister of State to convey to the Minister that every pressure must be put on Ryanair at this stage to fulfil its contractual obligation with the Government to complete its PSO arrangement, which ends next July. If that does not happen it must select another airline, and I understand Aer Arann is now in a position to take on this task in the very near future.

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