Noel Dempsey (Meath West, Fianna Fail)

Having considered the value for money review of Exchequer expenditure on regional airports, the Government has agreed to support the continuation of a public service obligation, PSO, route between Donegal and Dublin airports and Kerry and Dublin airports. In line with the review, the Government has also agreed to cease requiring PSO routes between Dublin and Sligo, Knock, Galway and Derry airports from July 2011.

The review, published last Wednesday, involved extensive consultations with a wide range of stakeholders including the regional airports, the BMW regional assembly, IDA Ireland, the Irish Aviation Authority, Fáilte Ireland, Tourism Ireland, Enterprise Ireland, Aer Arann and Ryanair. Under updated EU legislation governing PSO air services, more stringent conditions will apply having regard, for example, to the availability of other transport connections and especially rail services with a travelling time of three hours or less. In the context of regional strategy, this decision took account of recent improvements in alternative transport modes, the change in EU legislation, the completion of the review and the requirement to make best use of scarce Exchequer resources. Overall, the combination of an improved surface transport network with a more consolidated air service network to regional airports, together with the three State airports, provides the necessary transport access to underpin Ireland's sustainable development.

In addition to the PSO scheme, two other schemes provide Exchequer support to the regional airports. The core airport management operational expenditure subvention scheme, OPEX, covers all or part of the airports' operational losses in any given year and the capital expenditure grants scheme, CAPEX, provides finance towards the cost of necessary infrastructure at regional airports. I am giving further consideration to these schemes and will revert to Government shortly with proposals.

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