Simon Coveney (Cork South Central, Fine Gael)

People living in places like Waterford, Donegal, Sligo, Kerry, Galway or Knock will not get any positive news from what the Minister has said today. I know that the number of people living in Knock is small, but a significant number from the broad surrounding area use the airport. The Minister has stated there are three sources of funding support for regional airports, operational funding, capital funding and the PSO. Even though the PSO money goes to airlines, Aer Arann, and Ryanair in the case of Kerry, it is because of the PSO that those airlines can continue to use the regional airports. Therefore, there is a symbiotic relationship between the PSO and the operating costs of regional airlines.

I would like to focus on the operational subvention, because we will have many more debates on the PSO levy and whether it should be changed or abolished. I do not think we should abolish the PSO, but we could change it to make it more effective to try to drive more passengers through regional airports. The Minister has provided the figures of the operational subvention paid to regional airlines for 2009 and 2010. The year 2010 is not yet over, but based on the figures the Minister has provided, the subvention for 2010 is less than half of what was paid last year. The effect of that will be to shut regional airports. Is there still a consideration in the Department for further operational subvention for regional airports like Waterford? The subvention listed for Waterford this year is approximately €600,000 although it was almost €1.5 million last year. Does the Minister expect airports like Waterford to stay open? Waterford Airport is one that does not have a PSO subvention. Does the Minister expect Waterford Airport to survive when he has more than cut in half the subvention under which it operates? Are there further operational subvention funds to be allocated to regional airports on a priority basis to ensure we keep them open?

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