Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I move amendment No. 3:

To delete all words after "Dail Eireann" and substitute the following: "notes that:

— the Programme for Government 'Our Shared Future' recognises the huge value of our aviation sector in supporting economic development, international connectivity and tourism via our airports;

— the aviation and tourism sectors are major contributors to Ireland’s economy;

— successive Government policies have recognised and supported this contribution and pointed, in particular, to Ireland’s reliance on international connectivity to secure its competitive position internationally;

— the development and growth of international connectivity is facilitated by ensuring competition in the aviation industry;

— under the Chicago Convention, Ireland has negotiated bilaterally with a wide range of States to agree market access rights for both passenger and cargo services;

— Ireland traditionally has a liberal aviation policy and the general policy in negotiating bilateral air services agreements is guided by free market principles, and we remain positively disposed towards approval of fifth freedom rights on a reciprocal basis in bilateral agreements;

— the Government has already made progress in implementing several recommendations of the Taskforce for Aviation Recovery Report, and the other recommendations, including further targeted financial supports to help reinstate connectivity, regional development and sustainability in the sector are being considered and developed as appropriate;

— regional connectivity and development remains a critical priority of this Government;

— given the impacts of Covid-19 on the Country’s regional State airports, Budget 2021 provided €10 million in capital funding to assist Cork and Shannon airports meet the challenges presented by Covid-19 and also confirmed a commitment of €21 million to the continuation of the regional airports programme to support Ireland West Airport Knock, Kerry and Donegal airports;

— in line with the ‘Resilience and Recovery 2020 – 2021: Plan for living with Covid-19’ and to ensure that testing arrangements for international travel does not impact on the Health Service Executive testing capacity, the Government will enable the State airports to provide additional private testing capacity;

— before the Covid-19 outbreak, the Department of Transport had commenced scoping work on a revised version of the full National Aviation Policy, however, the Covid- 19 crisis has fundamentally changed the aviation landscape; in this context, it is considered more appropriate to take a shorter term view to examine how the aviation sector and regional connectivity can be supported while air travel remains suppressed due to the virus and how assistance can be provided to the sector to recover once this eases, and a full National Aviation Policy will be revisited in the future once the Covid-19 recovery picture is clearer and that policy has the potential to add value once again;

— prior to Covid-19, regional airports received funding through Tourism Ireland’s Regional Cooperative Market Access Scheme - a co-operative marketing activity to encourage new access and maximise the potential of existing services to the regions; as a result of Covid-19 and restrictions on international travel, Tourism Ireland has suspended paid promotional activity for its Regional Cooperative Marketing Scheme in Ireland, and will consider the resumption of the Scheme and any further measures to support regional access on foot of the report of the Tourism Recovery Taskforce and in the context of the National Economic Plan; and

— the forthcoming National Economic Plan, to be concluded later this year, will provide for any further appropriate measures to safeguard strategic regional connectivity and the resilience of the aviation sector; and

notes the Government’s commitment to:

— the survival and recovery of the aviation sector when circumstances allow;

— maintaining Ireland’s core strategic connectivity as it is essential for us as an island for export businesses and for Foreign Direct Investment;

— creating conditions to encourage the development of new air routes, particularly to new and emerging markets, when conditions allow;

— ensuring a high level of competition among airlines and airports;

— ensuring that our State airports are well positioned for the recovery so that they have the capability to resume and regrow services at the right time and commits to considering any additional supports that may be necessary in this regard;

— ensuring the regulatory framework for aviation reflects best international practice;

— considering further targeted financial supports to help reinstate connectivity, promote regional development and sustainability in the aviation sector, which will feed into the Government’s further plans to aid broader economic recovery at the appropriate time, while being cognisant of prevailing public health advice;

— increasing and extending Ireland’s bilateral agreements with other States, with the ultimate objective of reaching agreement on the basis of fifth freedom rights on a reciprocal and non-discriminatory basis in terms of access to Irish airports (the limiting of fifth freedom rights to any particular airport in Ireland would most likely lead to a similar limitation in the other country market and this would not be in the national interest);

— develop a testing regime for passengers to and from both orange and red listed destinations in the European Union (EU), in order to fully implement the EU coordinated approach to the restriction of free movement in response to the Covid-19 pandemic, with all measures in place for red/grey regions in the EU European Centre for Disease Prevention and Control categorisation, including arriving passengers not being advised to restrict movements while undertaking an essential function, to be applied to arrivals from all other third countries; and

— implement the remaining recommendations contained in the Aviation Recovery Taskforce which are aimed at stimulating a return to growth in air travel when the time is right to do so."

I thank the Deputies for the opportunity to discuss this matter, particularly as it affects regional development and airports in the current context of dealing with the challenges of Covid-19 to the Irish aviation industry. Given the importance of aviation to all aspects of Irish society and the economy, I am pleased to discuss this motion.

In recent months there has been ongoing engagement with key stakeholders in the aviation industry and more recently participation by airlines, airports, those who contributed to the aviation task force, the European Commission, the National Public Health Emergency Team, NPHET, and many others at the Oireachtas joint committee meetings. This engagement has provided an opportunity to outline the devastating impact of Covid-19 on our aviation industry, air concerns and suggest solutions.

It is clear from these engagements, contributions and discussions that we are all on the one page when it comes to the importance of aviation to Ireland. We are also in agreement that we want international air travel to resume safely as soon as possible and we want to see correct measures in place so the aviation industry can begin to plan and build towards a stable and sustainable recovery.

The Government has listened to those concerns. In recognition of the catastrophic impacts and unprecedented challenges faced by the industry in what is a global phenomenon, yesterday the Government approved an additional aviation support package of almost €50 million. Provision of this additional and significant Exchequer funding will further assist all our airports, including our regional airports at Knock, Kerry and Donegal, the regional State airports in Cork and Shannon, along with Dublin Airport, in meeting the challenges presented by Covid-19. This approval brings the sector-specific supports announced by the Government yesterday and in budget 2021 to approximately €80 million. This €80 million package is in addition to the horizontal supports introduced by the Government to help mitigate the effects of the crisis on our citizens and businesses, including grants, low-cost loans, waivers of commercial rates and deferred tax liabilities. The aviation industry in Ireland has availed of these economy-wide supports, notably the employment supports, waiver of commercial rates and deferred taxes. The value of these supports to the sector is in excess of €100 million.

The Deputies' motion refers to financial assistance for Cork and Shannon airports and for our other airports outside Dublin. In addition to the economy wide supports that Shannon and Cork airports availed of this year, Shannon Airport was allocated emergency funding of €6.1 million earlier this year to complete a vital hold baggage screening project, which is a safety and security requirement under EU regulations. Yesterday's announcement provides a further €21.5 million in supports for Cork and Shannon next year, which in addition to providing operational support for safety and security-related costs, will provide capital funding in addition to the €10 million announced in the budget. This will allow Cork to progress its runway reconstruction and Shannon to deliver important safety and security related projects and an apron rehabilitation. The Government has also agreed that a study will be undertaken to assess the potential for a light rail link from Shannon Airport and Shannon town to the Ennis to Limerick rail line.

With regard to our other regional airports, the Government confirmed a commitment of €21 million to the continuation of the regional airports programme to support Knock, Kerry and Donegal airports in budget 2021, with a further amount of €6 million announced yesterday to support these airports. I accept these are difficult times but it must be acknowledged that these are significant additional allocations in Exchequer funding.

The task force for aviation recovery was tasked with making recommendations for consideration by Government on what was needed to assist the aviation sector to recover from the Covid-19 crisis. The Government has already implemented several of its recommendations, including the publication of safe air travel protocols, a European slot rule waiver which is being progressed for airlines in consultation with the European Commission and the extension of the wage subsidy scheme to April 2021. The package approved yesterday by the Government also includes an airport charges rebate scheme, a task force recommendation which will have to be notified and approved under state aid rules. This scheme is being developed to support the retention of services through the winter season from January to March 2021. This further demonstrates the Government's commitment to safeguarding connectivity and will allow for the reinstatement of services.

The motion calls on the Government to prepare a new national aviation policy that recognises the importance of regional connectivity to balanced and more sustainable regional development but Ireland's current national aviation policy already recognises this. Its goals of enhancing Ireland's connectivity, fostering the growth of aviation enterprise and maximising the contribution of aviation to Ireland's sustainable economic growth and development remain valid. My Department has commenced scoping work on a revised national aviation policy. However, Covid-19 has fundamentally changed the aviation landscape and significant uncertainty remains on how long the pandemic will last and when aviation might return to pre-Covid levels. Therefore, in the shorter term we need to consider how the sector and regional activity can be supported while air travel remains suppressed due to the virus and how we can assist the sector to recover once this eases. I assure Deputies that the national aviation policy will be revisited in the future once the Covid-19 recovery picture is clear and that policy has the potential to add value once again.

The Government is clearly committed to balanced regional development. The programme for Government, Our Shared Future, recognises the enormous value of our aviation sector in supporting economic development, international connectivity and tourism via our airports. Revising Fáilte Ireland's objectives is not my area of responsibility but, having liaised with my colleague, the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, and her Department, I assure Deputies that the Government's tourism policy statements and action plans recognise that Ireland's regional marketing brands like the Wild Atlantic Way and Ireland's Ancient East provide compelling reasons for our best prospect overseas visitors to travel throughout the country and help us to achieve our longer-term targets. This recognition resulted in the establishment of the regional co-operative market access scheme which promotes air and sea access direct to Ireland's regional experience brands. It is administered by Tourism Ireland, with matching funding from airlines, sea carriers, airports, ports and regional tourism stakeholders including local authorities.

The tourism recovery task force was established earlier this year to prepare a tourism recovery plan to include recommendations on how best the Irish tourism sector can adapt and recover in the changed tourism environment as a result of Covid-19. The task force has completed its work and has identified the re-establishment of international access to Ireland as an immediate priority recommendation for the survival of the tourism sector here. Tourism Ireland will consider the resumption of the regional co-operative marketing scheme and any further measures to support regional access on foot of the report of the tourism recovery task force in the context of the national economic plan.

On international travel and testing at our airports, I can confirm that building on the decision to align to the EU traffic light system, the Government agreed yesterday that, from midnight on 29 November, passengers arriving from red locations will not be expected to follow the advice to restrict their movements following receipt of a negative result from a PCR test concluded at least five days after arrival. Such PCR tests can be obtained from private providers and will be paid for by the passenger. A number of private companies are providing Covid-19 tests so this measure will have no impact on the HSE testing system. In addition, the State airports are to establish additional private testing facilities at Dublin, Cork and Shannon airports. This will facilitate pre-departure testing for travellers to other countries where the need arises. It will also facilitate post-arrival tests for persons arriving from red regions who may choose to return to the airport five days after arrival to take the test. Cork and Shannon Airports are expected to open facilities shortly and the facility at Dublin Airport is expected to be operational by 29 November.

The motion before the House also suggests that fifth freedom rights be limited to airlines using Shannon Airport. Under the Chicago convention, Ireland has negotiated bilaterally with a wide range of states to agree market access rights for both passenger and cargo services. Traditionally, Ireland has had a liberal aviation policy and the general policy on negotiating bilateral air services agreements is guided by free market principles. We remain positively disposed towards approval of fifth freedom rights on a reciprocal basis in bilateral agreements. I can confirm that the Government is committed to increasing and extending Ireland's bilateral agreements with other states. The ultimate objective would be to reach agreement on fifth freedom rights on a reciprocal and non-discriminatory basis in terms of access to Irish airports. The limiting of fifth freedom rights to any particular airport in Ireland would most likely lead to a similar limitation in the other country market which would not be in the national interest.

While I am happy to be able to advise Deputies of the substantial financial support package being made available to the sector, I am conscious that there are still challenges ahead for the industry. The question of when aviation business might be able to resume in a meaningful way is clearly linked to the evolution of the virus, ongoing travel restrictions, public health advice as well as the more general economic outlook. While there are many good points in the motion tabled by the Independent Group of Deputies, there is a failure to acknowledge actions taken by the Government to date. It is for this reason that I must reject the motion. That said, I appreciate the intent and the argument being made by Deputy McNamara. I agree that we need to think long term while also managing the immediate crisis. I am committed to doing that and to working with Deputy McNamara and others, particularly those who have a specific geographic interest in regional airports like Shannon Airport. We must sit down and put our thinking caps on and devise a strategy. Quite apart from the difficulties caused by the Covid-19 restrictions, we all know that there is an imbalance here. We are seeing enormous development on the east coast and far less elsewhere. We need to consider every tool to try to redress that imbalance for the good of the whole country. I commit to working with Deputy McNamara and others in that regard.

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