Thomas Byrne (Meath East, Fianna Fail)

The Government does support Waterford Airport. I assure the Deputies that the 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 commitment and the requirements under the Government’s infrastructure guidelines, Waterford Airport was invited earlier this summer to submit a preliminary business case to the Department of Transport. As the Deputies will be aware, the infrastructure guidelines set out the value-for-money guidelines for the evaluation, planning and management of public investment projects. These arrangements apply to all public bodies and all bodies in receipt of Exchequer capital funding of this nature.

In relation to the timeline around the development proposal, it was in fact 2018 when Waterford Airport brought forward its proposal for an expanded runway and related services. I understand this proposal was in the form of a letter to the Department of Transport with a one-page overview of the projects proposed, which included high-level indicative costings. Following this, as mentioned, in June 2019 the Government gave approval in principle to 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 contingent not only on €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 of Transport for appraisal. Despite engagement with the airport over the intervening period, this detail remained outstanding from Waterford Airport until 13 December 2023. I understand the Department prioritised the necessary assessment of the detail provided in line with the requirements under the Department of Transport’s transport appraisal framework. This framework provides guidance to ensure investment schemes in the transport sector can comply with the Government’s infrastructure guidelines. The Deputies will be aware that this detail outlined that the project costings have increased substantially above the original estimated cost of €12 million, to €27 million, deviating significantly from the original proposal. The Exchequer contribution sought has risen from €5 million to €12 million.

It needs to be recognised that certain conditions attached to the Government decision of 2019 have not been fulfilled. However, the Government is committed to working with all stakeholders to see this proposal progress and, as such, Waterford Airport has been invited to submit a preliminary business case for consideration.

This was all discussed in detail when the Minister, Deputy Darragh O’Brien, met with his Government colleagues the Ministers of State, Deputies Mary Butler and John Cummins, and the CEO of the local authority on 2 July last.

Given the Exchequer funding being sought by the airport to support this proposal, the Department of Transport's role is as an approving authority. It will be the airport's role, as the sponsoring agency, to ensure that the necessary detail and evidence are provided in its business case to demonstrate that sufficient demand and industry commitment exist to facilitate regular scheduled passenger services. The Department of Transport will work with the airport in its development of the business case and is available at all times to engage with the airport. Any business case will be assessed as a matter of priority once it is received.

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