Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Deputy for raising this issue. I appreciate its importance to the south east, and to all the public representatives and people there. I appreciate the energy Waterford Airport could inject into that region if it was a working and successful project.

Before I update the House, I think it might be useful to provide some background information on the issue. Many Deputies here today will be familiar with Waterford Airport, which has been operating in the south east of the country since the mid-1980s. While passenger numbers reached a peak of more than 140,000 in 2008, there was a steady decline in numbers thereafter with fewer than 35,000 travelling through the airport in 2015. In fact, since June 2016, as the Deputy stated, no scheduled air services have operated at Waterford Airport. In terms of Exchequer support, no capital funding grants have been provided to the airport since that time and grant aid towards operational funding ceased from 2017. This is because the schemes operated under the regional airports programme relate to the provision of scheduled air services. Unfortunately, despite best efforts and numerous attempts, the airport has not been able to secure new scheduled air services since the last operator ceased services in 2016.

This has, as one would expect, given rise to financial challenges at the airport. On foot of these challenges, the airport submitted requests to my Department for a minimal level of subvention, which would allow the airport to continue its operations in 2018 as it considered its future. After informing the Government of the situation, I made a decision to provide €375,000 to the airport in January 2018. I provided a further payment of €375,000 in December. That is the €750,000 to which the Deputy refers. These payments were justified. They were an exceptional measure and were made to ensure that there would be no disruption to the search and rescue service that operates from there. They were also provided to allow time for a full and extensive consideration of future options for Waterford Airport.

In respect of that consideration and the detailed analysis that would be required, the Department procured the services of EY, the independent consultants, in early 2018. During the course of this analysis, Waterford Airport submitted a proposal to my Department for Exchequer support in respect of a project to expand the runway at the airport to accommodate large commercial passenger jets. The airport is also intending to raise money from three local authorities - Waterford, Kilkenny and Wexford - and from private investors. EYwas asked to assess this proposal as part of its review.

The airport contends that the failure to maintain passenger services is embedded in the limitations of its runway, particularly in terms of length, which cannot handle larger jet aircraft. Following completion of the EY review, my Department sought additional information from the airport in respect of private investor commitment, interest from jet carriers and the future ownership and shareholding position of the airport company. Then, in October last, I brought the matter to Government for the purposes of updating my Cabinet colleagues and also to inform them of my intention to provide a copy of the EY report to the board of Waterford Airport. The airport was invited to respond to EY's findings and to provide any additional information that might strengthen its position in respect of the runway proposal. That response, received from the airport last week, is being reviewed by my Department and will be assessed against national aviation and transport policy objectives, as well as broader Government policies such as Project Ireland 2040 and the national planning framework. Once I have fully considered the matter, it is my intention to revert to Government for a decision in the coming weeks.

See this speech in context