Timmy Dooley (Clare, Fianna Fail)
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Question 21: To ask the Minister for Transport; Tourism and Sport the steps he has taken to provide practical assistance to both Galway and Sligo Airports in order to ensure their survival before funding for both airports, under operating expenditure and capital expenditure ends in 2012. [18897/11]

Leo Varadkar (Dublin West, Fine Gael)
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The question relates to practical assistance for Galway and Sligo airports. As I announced on 7 June, the Government has agreed to provide practical assistance in the form of additional funding to Galway and Sligo airports in 2011, along with the other four airports at Donegal, Ireland West at Knock, Kerry and Waterford. This involves providing an additional €5.9 million on top of the €13.4 million already allocated to the regional airports for this year by the last Government to cover operational and capital expenditure.

The Deputy will be aware that when I took office, I discovered that the previous Government had left my Department with just €600,000 for operational funding at all six airports. This was in spite of the disingenuous Government decision last February to fund all of the airports for the whole of 2011 without allocating the necessary funding. The €5.9 million allocation reverses the cut made in funding by that Government and involves making reductions on a once-off basis in other areas within my Department.

As the Deputy is aware, I will not be in a position to provide operational or capital funding to Galway or Sligo airports from 2012 onwards. This decision was necessary to make best use of scarce Exchequer resources and to ensure the efficient use of taxpayers' money. The aim is to ensure that Ireland has an adequate network of regional airports while taking into account significant improvements in road networks, shorter journey times by road and rail, and the collapse in passengers flying domestically. The additional funding being made available to Galway and Sligo airports in 2011 is to provide the airports with the time and space to engage with various parties, including business interests, investors and local authorities, to secure their ongoing viability in some form. I urge the airports concerned to make best use of this time to plan for their future.

Timmy Dooley (Clare, Fianna Fail)
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I thank the Minister for the reply but it will come as no surprise to him that I am particularly disappointed about the decision made not to continue a level of operational expenditure for Galway and Sligo. With particular reference to Galway, the chamber of commerce and the business and tourism interests in the region have put forward a strong and compelling case to retain a level of funding. The Minister will be aware from the various presentations made to his Department that the ongoing requirement is in the region of approximately €1 million. I do not want to suggest that €1 million is not much in the current climate, as it is, but it can be considered in the overall context of the significant spend of the Department at €600 million in the course of a year.

Michael Kitt (Galway East, Fianna Fail)
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Does the Deputy have a question?

Timmy Dooley (Clare, Fianna Fail)
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I am trying to work towards it. If the Department is not prepared to fund the airports on an ongoing basis, it is important that it provide some practical help. In that respect, the provision of some consultancy or mentoring services would allow people within the airport to consider the potential to gain alternative funding from some other source.

In asking the question I put on the record of this House that we are talking about a relatively small amount of money in return for the level of foreign investment in the region. Has the Minister had any further discussions with the IDA or Enterprise Ireland and how do they intend to mollify the concerns of the companies supported by foreign investment who are large employers? They have indicated it will be difficult for companies to compete for future rounds of funding and it will be more difficult to be competitive with regard to other operators in the sector.

What level of engagement has the Minister had with the business community, and the tourism industry in particular, or State agencies with responsibility for job creation and retaining foreign investment?

Leo Varadkar (Dublin West, Fine Gael)
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The airports should first make contact on their own behalf and have probably already done so. In Sligo, airport authorities should talk to the Coast Guard and the search and rescue helicopter contractor. They should also have discussions with the local authorities, as the two authorities own the airport. Officials at Galway should have discussions with the airlines, particularly Aer Arann, and I am sure discussions under way. They should also speak to potential investors and the local authority, which in contrast to Sligo does not provide any support to the airport. The business community and the chamber of commerce are the owners of the airport and could be in a position to fund it, if they so wish, with resources from the business community in that region.

No request has been made to me regarding support relating to consultancy or advice. There will be no change to the decision on operational expenditure and capital expenditure next year. If the airports are seeking some form of non-financial support I will consider any request in that regard.

The Deputy made a point regarding savings, and this cut saves quite a bit more than €1 million as the operational expenditure requirement for neighbouring airports is reduced. The saving is probably closer to €2 million on an annual basis in the case of Galway alone. The Deputy is correct to say that this is small in the context of my budget of approximately €800 million per year; unfortunately, it works the other way as I am required to remove approximately €100 million to €150 million from my budget. In that context the removal of support to Galway and Sligo is a small cut compared to others I must make.