Lucinda Creighton (Dublin South East, Fine Gael)

The Minister for Transport, Tourism and Sport is aware of the contribution of Galway Airport to the region. However, the Deputy will be well aware of the difficulties the Minister is now facing with regard to the lack of funding available for the regional airports programme for 2011 and in future years, following the reductions made by the previous Fianna Fáil-led Government. This is a fact and it is indisputable. Deputy Ó Cuív will be acutely aware of the funding provided to the regional airport programme for 2011 and its implications, given that he was a member of the Government: that made that decision.

At the same time as the available funding is reducing , some of the regional airports are becoming more dependent on Exchequer support of some sort. Given the State's current financial position, such a position is obviously not sustainable. A total allocation of €13.4 million is available for the regional airports programme for 2011. Of this allocation, €11.4 million is for current expenditure. Current expenditure is spent on the PSO air services of which more than €10 million has already been committed, with the remainder being available to cover the operational losses of the airports.

Based on a decision of the previous Fianna Fáil-led Government, after existing commitments for PSO air services to July 2011 and for new PSO air services from Kerry and Donegal to Dublin are accounted for, only €0.6 million is available for operational subvention for airports in 2011 whereas €4.8 million was paid out in 2010. The Department understands that the operational subvention for Galway Airport alone will be in excess of €1.5 million in 2011.

A further €2 million in the regional airports programme is available for capital projects at the airports, all of which is committed. This compares to expenditure of €21.2 million on the programme in 2010 and €200 million in the past ten years.

The value for money review published by the previous Fianna Fáil-led Government in January 2011 recommended that funding for PSO air services between Dublin and the regional airports be discontinued when current contracts end in July 2011, except for the Donegal to Dublin service, and that operational expenditure funding, OPEX, and capital expenditure funding, CAPEX, be discontinued for Sligo and Galway airports. These recommendations took into account changes in EU legislation, airport performances, the substantial investment in surface transport, overlapping catchment areas, the best use of scarce Exchequer resources and the implications for the tourism and business sectors in the regions.

The Minister is aware of the implications for both Galway and Sligo Airports arising from these recommendations. However, in the context of addressing the lack of funding issue, he has to take into account developments in recent years as highlighted in the review and the need to focus on ensuring the sustainability of a strong network of regional airports servicing the public, both in terms of business and tourism.

No decision on the funding for regional airports for 2011 and future years has yet been made by the Government. In the circumstances, it would be inappropriate at this stage to comment on the possible outcome of the Government's deliberations. However, it is clear that, in the current difficult climate, any decisions will have to take account of available Exchequer funds.

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