Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I am taking this topical issue on behalf of my colleague, the Minister for Transport, Tourism and Sport, Deputy Varadkar. Since his appointment, the Minister has set out to rationalise the system of State support for the privately owned regional airports. The Government now has a settled policy with regard to these airports. The Minister has also endeavoured to restructure the State-owned airports and, in particular, to map out the best future for Shannon Airport. All Irish airports should operate to a commercial mandate and the Minister has stressed in the past that regional airports, including Knock airport, must work towards achieving operational viability over the near term. This also applies to the three State Airports. This aim is particularly acute in the current difficult financial and economic situation in which the country finds itself.

Next week, the Minister for Finance will announce budget measures to achieve a further €3.5 billion in savings through expenditure cuts and revenue-raising initiatives. The State has recognised that the six privately owned airports needed financial assistance with their capital and operational costs and substantial amounts of taxpayers' money has been disbursed to them over the years to support their operations, but this could not go on indefinitely. To ensure best use of scarce Exchequer resources, it has already been necessary to cease all funding for the two airports in Galway and Sligo. Subject to funding availability, the other four airports, including Knock, will continue to be eligible for funding up to the end of 2014. In this regard, approval was secured from the European Commission in 2011 to extend the Department of Transport, Tourism and Sport's capital expenditure grant scheme for three years to 2014. It is in this context that all airports must work towards sustainability over the coming years, without an ongoing need for Government subvention. Capital funding for these four airports is focused on safety and security projects aimed at ensuring they can comply with the latest national and international aviation safety and security standards. Current funding is split between subvention for PSO air services between Dublin and the two most remote regional airports, Donegal and Kerry, and operational subvention towards the cost of providing core airport services at these airports.

As the Deputy will be aware, following the Government decision last May to separate Shannon Airport from the Dublin Airport Authority group and merge it with a restructured Shannon Development to create a new entity, a steering group of senior officials from five key Departments was established to introduce proposals for the implementation of that decision. The steering group was assisted by two task forces, which submitted their reports for consideration by the steering group earlier this month.

On the basis of the work undertaken by the task force and the steering group, detailed proposals on the restructuring of the State airports and Shannon Development have been submitted to the Government by the Minister for Transport, Tourism and Sport and the Minister for Jobs, Enterprise and Innovation. An announcement will be made about this shortly. The task force made a submission to the Department of Finance in the context of the forthcoming budget and it is understood that it suggested a range of potential nationally available incentives that could be considered in support of aviation development in this country. However, as the Deputy is aware, budgetary matters are an issue for the Minister for Finance. Aviation is a key component of all major forms of economic activity in Ireland, in our tourism as well as our business sectors. The measures being taken are based on increasing the overall number of passengers to and from Ireland through increased efficiencies and attracting new aviation business that can have a beneficial national impact. The Minister believes that these measures will form the basis for sound, sustainable airport businesses into the future that will support the growth of these sectors and help drive Ireland's economic recovery.

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