Leo Varadkar (Dublin West, Fine Gael)

I propose to take Questions Nos. 28 and 30 together.

A decision to reduce to two the number of routes covered by public service obligation, PSO, air services, was taken in line with the value for money review of the Exchequer expenditure on the regional airports programme. This review took account of a number of factors including the performance of the services, the requirement to make best use of scarce Exchequer resources as well as improvements in alternative transport modes and changes in EU legislation covering PSO services.

I can confirm that my Department has formally applied to the European Commission to continue the routes linking Donegal and Kerry with Dublin. It is expected that the new contracts in respect of these two routes will be in place before the end of this year.

With regard to the Derry PSO route, it is not my intention to revisit the previous Government's decision regarding this route and the finance is not available to my Department to do so, in any case. I am considering issues relating to the operational subvention scheme and the capital grants scheme, which also have provided for regional airports. I intend to bring proposals to Government shortly.

In this context it would be inappropriate for me to comment on any future arrangements for these schemes in advance of a Government discussion and decision on the matter.

See this speech in context