Seán Canney (Galway East, Independent) | Oireachtas source

I thank both Deputies for raising this matter. I understand their frustration. This has been going on a while. I assure the Deputies that this Government is committed to working with all stakeholders to see the Waterford Airport project to lengthen and widen the runway progress. In line with this and on behalf of the Minister for Transport, Deputy Darragh O’Brien, I welcome the opportunity to update the House on the topic this evening.

As the Deputies will be aware, Waterford Airport is owned by Waterford Regional Airport plc. As well as general aviation services, the airport operates as an Irish Coast Guard search and rescue base, which is currently under a commercial contract with CHC Ireland. Unlike the local authorities in Waterford, Kilkenny and Wexford, the Department of Transport does not have a shareholding in the airport company nor does it have a role in the commercial operation or future business planning of the airport. Having said that, Waterford Airport was eligible for Exchequer funding from the Department under the most recent regional airports programme, which was for the period from 2015 to 2019. However, following a steady decline in passenger traffic from a peak of 143,000 passengers in 2008, scheduled passenger services at the airport ceased in 2016, with only 15,000 passengers that year.

National 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. Without scheduled passenger services, Waterford Airport’s operations fail to meet the connectivity objective associated with Government policy on funding of regional airports. However, it is recognised that Waterford Airport has faced serious financial challenges. I understand that, to avoid liquidation, the airport sought emergency subvention from the Department totalling €1.5 million over the period 2017 to 2020. This Exchequer funding was provided on an exceptional basis to allow time for the airport to consider future options, including a proposal to expand its runway. It was 2018 when Waterford Airport brought forward this proposal. Following this, in June 2019, the Government gave approval in principle for an expression of support for the expansion proposal and to providing Exchequer funding of €5 million towards the project, which was then estimated to cost €12 million.

Government support at that time was not only contingent on the €2 million in local authority funding and €5 million in private investment funding necessary to complete the project being committed and any risks relating to cost escalation being borne by the non-State investors, but also on full details of the project being provided to the Department for appraisal. Despite engagement with the airport over the intervening period, this detail remained outstanding from Waterford Airport until 13 December 2023. I understand that the Department prioritised the necessary assessment of both the proposal and the significant additional documentation provided by the airport in response to queries raised by Department officials up until July 2024. The Deputies will be aware that this detail outlined that the project costings have increased substantially above the original estimate of €12 million to €27 million, deviating significantly from the original proposal.

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The Exchequer contribution now has risen from €5 million to €12 million. The assessment undertaken was in line with requirements under the Department's transport appraisal framework. This framework provides guidance to ensure investment schemes in the transport sector can comply with government infrastructure guidelines. While this assessment was submitted to the former Minister, Eamon Ryan, and the then Minister of State, Deputy Lawless, for review and consideration of next steps on 19 September 2024, next steps were not determined at that time. I understand that the Minister, Deputy O’Brien, is currently considering the next steps in this regard and is looking forward to positive engagement with Waterford Airport on this matter. Any potential Government support will be considered when this engagement and appraisal process is complete.

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