Simon Coveney (Cork South Central, Fine Gael)
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Question 53: To ask the Minister for Transport his regional strategy having announced the ending of State funding for Galway, Knock, Sligo and Derry airports without any consultation or political debate; and if he will make a statement on the matter. [2630/11]

Noel Dempsey (Meath West, Fianna Fail)
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Having considered the value for money review of Exchequer expenditure on regional airports, the Government has agreed to support the continuation of a public service obligation, PSO, route between Donegal and Dublin airports and Kerry and Dublin airports. In line with the review, the Government has also agreed to cease requiring PSO routes between Dublin and Sligo, Knock, Galway and Derry airports from July 2011.

The review, published last Wednesday, involved extensive consultations with a wide range of stakeholders including the regional airports, the BMW regional assembly, IDA Ireland, the Irish Aviation Authority, Fáilte Ireland, Tourism Ireland, Enterprise Ireland, Aer Arann and Ryanair. Under updated EU legislation governing PSO air services, more stringent conditions will apply having regard, for example, to the availability of other transport connections and especially rail services with a travelling time of three hours or less. In the context of regional strategy, this decision took account of recent improvements in alternative transport modes, the change in EU legislation, the completion of the review and the requirement to make best use of scarce Exchequer resources. Overall, the combination of an improved surface transport network with a more consolidated air service network to regional airports, together with the three State airports, provides the necessary transport access to underpin Ireland's sustainable development.

In addition to the PSO scheme, two other schemes provide Exchequer support to the regional airports. The core airport management operational expenditure subvention scheme, OPEX, covers all or part of the airports' operational losses in any given year and the capital expenditure grants scheme, CAPEX, provides finance towards the cost of necessary infrastructure at regional airports. I am giving further consideration to these schemes and will revert to Government shortly with proposals.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister has misled the House. There was certainly no extensive consultation before his announcement last week that he was cutting the PSO levy for services between Dublin, Sligo, Galway, Knock and Derry airports. The announcement came as a shock and surprise to many. We were expecting to have a robust and, potentially, difficult debate around the future of regional airports, their funding and State supports and putting in place a new and more effective PSO to link regional airports with Dublin. No one was expecting the Minister to announce the Government was pulling PSO funding from four airports in the west without publishing the value for money review. The review should have been the subject of a debate in this House before significant decisions were taken that will impact seriously on the west and regional development policy. Will he explain the rationale behind his decision to cut the PSO levies?

Noel Dempsey (Meath West, Fianna Fail)
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I reject out of hand the Deputy's contention that I misled the House. In my reply, I outlined the various bodies and organisations that were consulted. To my knowledge, all of the regional airports made detailed submissions both to my officials and to me. I met a number of representatives from the regional airports in various places - including at the BMW regional assembly - and at different times. I, therefore, reject out of hand the Deputy's contention in this regard.

I can excuse the Deputy for not being aware of what is happening. After all, it was not long ago that he was appointed his party's spokesperson on transport. However, he is the only person who should have knowledge of this matter who was caught by surprise by the announcement.

Simon Coveney (Cork South Central, Fine Gael)
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That kind of smart response does not help anybody. There are people who are extremely concerned that airports in the west are going to be obliged to close as a result of the Minister's announcement last week. I have also met representatives from most of the regional airports. I accept that these airports made representations to the Minister in the context of justifying their existence. However, that is not the same as consulting someone before shutting off their revenue source. Since I became my party's spokesperson on transport, the Minister provided a commitment to me to the effect that a debate would take place in the House in respect of regional airports and their future and the PSO levy and its role regarding the future viability of such airports. The Minister has decided to ignore that commitment and simply announce a reduction in funding from July onwards. Why did the Minister not publish the report and then engage in a debate - which would have been broad in nature and which would have focused on regional policy and the role of airports therein - on it within the House before making his decision?

Noel Dempsey (Meath West, Fianna Fail)
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If the Deputy makes smart comments, he can expect smart responses in return. He will be aware that the current PSO contracts end in July. He will also be aware of the severe financial constraints under which the current Government is operating and under which its successor will be obliged to operate for the next three to four years. Decisions must be made and endless prevarication in respect of issues of this nature is of assistance to no one.

As the Deputy has admitted, consultations took place. The terms of reference relating to the consultation process are listed at the back of the value-for-money review document and everyone was aware of the destination to which that process was leading. On the basis of the submissions made, the advice received and, as already stated, the nature of the country's current financial circumstances, the Government made the decision I outlined earlier.