Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

I thank both Deputies for their questions on this matter. Regarding the review carried out by NewERA, this is a requirement under the code of practice for the governance of State bodies. Within the first six months of each financial year, commercial State bodies, including the Shannon Group, are required to submit to their relevant Ministers a draft annual rolling five-year business and financial plan. Therefore, in May 2021, Shannon Group submitted financial forecasts, although, due to the uncertainty arising from Covid-19, they covered the period from 2021 to 2022 only. Given its role as a financial adviser to the Minister, the financial forecasts were reviewed by NewERA. In July 2021, a report was submitted by NewERA to the Departments of Transport and Public Expenditure and Reform for consideration. Given Shannon Group's status as a commercial State body, the details of the report are confidential and commercially sensitive.

As part of its report, NewERA provided observations on the significant financial impact on, and challenges for, Shannon Group arising from Covid-19. This financial analysis was assessed by the Department of Transport in the context of the 2022 Estimates process and its engagement with the Department of Public Expenditure and Reform in this regard. The Minister for Transport, Deputy Eamon Ryan, and the Minister of State, Deputy Hildegarde Naughton, also updated the Government on the financial position of Shannon Group as part of a recent memorandum to the Government on Shannon Group and aviation supports more generally.

The Deputies will be aware that, early in the Covid-19 crisis, this Government put in place a range of economy-wide supports to help to mitigate the impacts of Covid-19. Shannon Group has, as appropriate, availed of these supports, including the recently extended employment wage subsidy scheme. In addition, Shannon Airport is benefiting from aviation-specific supports under the regional State airport programme, which was put in place for 2021. This is in addition to €6.1 million allocated by the Government to ensure the completion of a safety and security project at the airport this year. Shannon Airport, and our other State and regional airports, have also received funding under the Covid-19 supplementary supports schemes, which have an increased budget of €116 million. This funding, which the Minister of State, Deputy Naughton, announced yesterday following the recent approval from the European Commission, provides State airports, including Shannon Airport, with the flexibility to roll out route incentives and charge rebates, with a view to supporting recovery and growth of connectivity.

In total, this year the Government has allocated an unprecedented €24 million to Shannon Group in direct grant support. This is in addition to the aviation-specific supports granted last year and the economy-wide supports that Shannon Group has availed of throughout the crisis. I assure the Deputies that the Government will continue this support into 2022. Shannon Airport is eligible for continued Government support under the regional airports programme next year. Given the challenges ahead, the Government has approved an allocation of €36 million for the programme in 2022. This is an increase of some €15 million on the allocation provided under the programme this year and reflects the increased budget necessary to support both Shannon and Cork airports under the programme along with Ireland West, Kerry and Donegal airports in 2022.

Looking beyond Shannon Airport, I understand that Shannon Group's engagement with the relevant local authorities on the transfer of Shannon heritage sites to them is progressing well. However, due to the complexities involved in the transfer, due diligence exercises must be concluded before any necessary formal consents of the Ministers for Transport and Public Expenditure and Reform can be given to execute any transfer of the sites, with the agreement of the Minister for Housing, Local Government and Heritage.

As the Deputies will be aware, Pádraig Ó Céidigh was recently appointed as chairperson of Shannon Group. I am pleased to let them know that the Minister for Transport and the Minister of State, Deputy Naughton, had a good meeting with Mr. Ó Céidigh last Friday. They discussed the current status of the group and the key challenges, risks and opportunities for the future as Shannon Group continues to successfully position itself for recovery.

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