Jerry Cowley (Mayo, Independent)
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Question 71: To ask the Minister for Transport his views on whether Knock international airport is one of Ireland's international airports; if he will support an investment programme for the airport which will provide increased levels of service to the area as a whole, increase tourism in the region and encourage economic growth in light of the airport's significant regional development; and if he will make a statement on the matter. [16287/06]

Martin Cullen (Waterford, Fianna Fail)
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My Department assists Ireland West Airport Knock through a range of financial support mechanisms. Since 2000, the airport has received approximately €6.5 million in operational and capital support directly from the Exchequer. This ongoing support has greatly assisted the airport to maintain viable operations and to grow its business, especially on UK routes operated by low cost air operators, and I understand the airport constantly seeks to expand its range of services. My Department will continue to assist Ireland West Airport Knock in line with the relevant EU guidelines on financing of airports and the Department of Finance capital appraisal guidelines.

A total of €100 million will be available for investment in development and safety related infrastructure in all regional airports under the Transport 21 framework. In addition to the continuation of grant assistance for essential safety and security capital expenditure under the national development plan, Ireland West Airport Knock will also be eligible for capital expenditure grants where demand for additional air services can be demonstrated and where an economic case can be made to justify increased investment. A new grant scheme is being devised at present and I expect to be in a position to announce details shortly. In anticipation of the finalisation of the new scheme, my Department is considering a number of projects for the airport which are intended to enable the developing airport to comply with international standards to meet future passenger demand.

In addition to the proposed new capital grants programme, a new scheme of operational grant assistance is being developed in line with EU guidelines which will be launched later this year.

My Department also supports regional air access through the essential air service programme, by providing financial compensation to air carriers on PSO routes, such as Knock-Dublin, where carriers would not be prepared to operate on a commercial basis.

Jerry Cowley (Mayo, Independent)
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I am grateful to the Minister for his detailed reply to my question. He referred to €100 million which is available for security, development projects and so on at regional airports over five years. Even though it was announced in the budget last December, and it is now May, the money has not yet come on stream. Knock airport is seeking €29 million for an apron area in particular. It is facing congestion this summer because the planes that have been landing at the airport have been successful in increasing their flights, therefore, there will not be adequate apron area for these aircraft to turn around. There is a difficulty with the large aircraft landing at the airport, which has the third largest runway in Ireland.

When will the €100 million be made available, which would go a long way towards providing Knock airport with the €29 million it requires? While it was announced in the budget last December, it has not been made available so far.

Martin Cullen (Waterford, Fianna Fail)
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The Deputy is correct that €100 million capital is available under Transport 21 for regional airports. He may be aware that the EU has changed its guidelines in terms of the ability of states to invest in regional airports. Much of this is as a result of the activities of Ryanair and other regional airports which makes it much more difficult to make money available for specific airport projects. However, I hope the discussions are nearing completion in Brussels. We had to achieve an agreed set of guidelines with Brussels on the basis on which we would make money available to regional airports, which is why there has been no drawdown so far.

As the Deputy may be aware, a number of different plans have been submitted by Knock airport. We have now reached the point of putting in place the more realistic plans. I recently flew to Knock, which is a fine airport. I am aware of the issue of the apron capacity adjacent to the terminal. Clearly there is an issue in terms of expansion. I gather from members of the board of Knock airport that they would like investment to begin the project. As soon as the discussions in Brussels for a framework for capital funding for regional airports conclude, we will hone the proposals from Knock to see what the priority is and how we can roll out the resources required.

Jerry Cowley (Mayo, Independent)
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I thank the Minister for that detail. When did the application go to Europe? I realise the Minister must get permission from Europe for this funding, but why did it take so long to sort out an issue which was announced last December? Can the European dimension be speeded up because the Minister is waiting for a decision from Europe to be able to give the go-ahead for the project? Will the Minister clarify why the matter has taken so long?

Martin Cullen (Waterford, Fianna Fail)
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There is no proposal in Europe about a specific airport. We had to agree a framework with Europe. Europe would prefer if the Government gave no money to regional airports. As the Government disagrees with that point of view, it will continue to support regional airports. The Minister for Finance made available an extra €100 million for the development of regional airports because, spatially and economically, it is important to strengthen the regions.

We have been discussing the matter in Brussels for the past three or four months. We are approaching the end of the discussions and I hope the talks will conclude within the next week when there will be a clear framework to get into the individual discussions with Knock, Waterford and the other regional airports.