Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank the Deputy for the opportunity to speak about Sligo Airport. As she will be aware, Sligo Airport is a private company based in Strandhill. As well as general aviation services, the airport operates as a Coast Guard search and rescue base under a commercial contract with CHC Ireland. The Department of Transport contracts for the delivery of the search and rescue service to CHC Ireland, which uses Sligo Airport as a base to deliver part of this service. The arrangements for this are a matter between CHC and Sligo Airport and do not involve the Department of Transport. As such, the airport does not receive funding from the Department in respect of the search and rescue service.

It has been almost a decade since Sligo Airport was eligible for Exchequer funding. Before 2011, when the airport operated scheduled services, it received State support through the Government's regional airports programme and a PSO air service between Sligo and Dublin.

Policy on regional airports has always been focused on optimising conditions for connectivity. As a result, Exchequer funding is contingent on airports operating scheduled passenger services as part of that programme. In the past, in the absence of high-quality road and rail infrastructure and services, Ireland's smallest airports had a more pronounced role in national connectivity. However, following the substantial development of the national road network, particularly the completion of the interurban motorways from 2009 onwards, Government policy on supporting regional airports has become more focused on facilitating international access to the regions.

In light of this and the need to maximise scarce resources following the financial crisis of 2008, the Department completed a value-for-money review on supports for regional airports in 2010. The review made certain recommendations in respect of these supports, which were duly incorporated into the design of subsequent regional airport programmes.

The main outcome of the review was the withdrawal of funding for PSO services between Dublin and the airports at Galway and Sligo. As a result, Sligo Airport no longer met the criteria for inclusion in the programme and all Exchequer funding to the airport ceased after 2011. Without passenger flights or plans to develop passenger flights, Sligo Airport's operations still fail to meet the connectivity objective associated with Government policy on funding of regional airports.

I expect to publish a new regional airports programme for the period 2021 to 2025 in the coming weeks and Government has provided €21.3 million for this programme in budget 2021. The new programme will focus Exchequer funding on our smaller regional airports with scheduled passenger air services and annual passengers of less than 1 million passengers. This programme will help eligible airports remain viable as they begin to plan for recovery and transition away from the devastation of Covid-19. The programme will also support the PSO air services between Kerry and Dublin, and Donegal and Dublin.

As policy will continue to target support at regional airports that can facilitate international connectivity, Sligo Airport will remain ineligible for funding under the new programme.

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