Simon Coveney (Cork South Central, Fine Gael)
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The Minister, given where he comes from, will understand the importance of access to the regions in parts of the country that are isolated from large population centres and which are and have for some time been heavily reliant on air access.

I raise this issue because I am concerned that the subvention system in place to support the six regional airports I will mention is surrounded with uncertainty.

Tony Killeen (Clare, Fianna Fail)
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Gabhaim buíochas leis an Teachta Coveney as ucht an t-ábhar seo a ardú inniu.

The scheme to which the Deputy refers was introduced in 2006 in response to new mandatory EU guidelines on the provision of public funding for airports, including regional airports. Under this scheme, the regional airports may be considered for annual subvention in respect of operating costs incurred in providing core airport services, to the extent that these cannot be met by prudent commercial management and by any surpluses available from other sources such as carparking charges and catering.

In view of a projected shortfall in the resources available to fund this scheme, after allowing for estimated requirements for the PSO Air Services Programme for 2010, the regional airports were allocated operational expenditure or Opex funding on a pro rata basis in July of this year, with no airport getting the full amount it might otherwise expect. This allocation was in line with the Opex contracts with the airports. However, the Minister for Transport is very much aware that several events have impacted on the regional airports since this year's applications for funding were received and that payments at the reduced level have been causing difficulties for them. To that end, the Department of Transport has been monitoring the position with management at each of the airports. In recognition of those difficulties, the Minister for Transport has decided to provide additional funding for the scheme for 2010.

The airports have been invited to submit additional information in support of their applications for funding. This updated information will be re-assessed by the Department of Transport in accordance with the terms of the scheme and allocations will be made accordingly. As the Deputy will be aware, the Value for Money Review of Exchequer Expenditure on the Regional Airports Programme, including the Opex scheme, has been completed and is at present being considered by the Government. It is expected that, in light of that review, decisions on funding for regional airports in future years will be made in the context of the Estimates and budget process later this year.

With changes in EU legislation, the substantial investment in surface transport, the completion of this review and the requirement to make best use of scarce Exchequer resources, the focus for the future will be on ensuring the sustainability of a strong network of regional airports servicing the Irish public, both in terms of business and tourism.