Seán Sherlock (Cork East, Labour) | Oireachtas source

I am taking this Topical Issue on behalf of the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, who apologises for being unable to attend this afternoon.

The Exchequer provides funding supports to the four regional airports in Donegal, Kerry, Waterford and Knock under the regional airports programme operated by the Department of Transport, Tourism and Sport. Over the past decade, Knock has received almost €21 million in Exchequer support in operational and capital grants under the OPEX and CAPEX funding schemes administered by the Department.

In August last year, the European Commission gave its approval for the Department's new regional airports programme, which takes account of the recommendations of the Knock study group and the subsequent decision by Government to continue funding supports to the four regional airports. That decision recognised that the regional airports should be given the opportunity beyond 2014 to grow to a viable, self-sustaining position, particularly considering the contribution that they make to their respective regional and local economies. This was also acknowledged in the new national aviation policy that was published last August. The Deputy will be aware that, under new EU state aid guidelines of 2014, the maximum level of aid permissible for capital projects at airports with fewer than 1 million passengers per annum is 75%. The EU guidelines recognise, however, that airports in this category may face difficulties in sourcing the balance of at least 25%. Subject to a case-by-case assessment, an aid rate in excess of 75% may be justified in exceptional circumstances. In such a scenario, the Commission has indicated that a business case justifying any proposed higher aid rate would have to be approved by it and must be able to demonstrate the airport's inability to proceed with the proposed investment at the 75% aid rate. Under a new aspect of the regional airports programme called the public policy remit, all of the regional airports, including Knock, are eligible for grant assistance up to 90% towards the cost of capital investments in the areas of safety and security. There is also a PPR scheme which assists with grants of up to 100% of the operational costs of the airports in these two areas. Last year, under the first year of the new programme, Knock received almost €1.2 million in grant supports from the Department and the latter has already begun engaging again with all four airports on their future requirements for capital grant assistance.

The Minister is, of course, aware that Knock has indicated that it will require a higher grant rate than the maximum 75% permitted under the EU guidelines for certain major capital projects that are planned at the airport over the coming years. The ongoing engagement with Knock continues to address this issue, as well as the funding available to the airport under the new PPR schemes.

See this speech in context