Dara Calleary (Mayo, Fianna Fail)
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Gabhaim buíochas leis an gCeann Comhairle as an ábhar seo a roghnú le haghaidh na díospóireachta anocht.

I thank the Ceann Comhairle for choosing this Topical Issue. The Minister of State is familiar with, and I am aware she has met, the management and directors of Ireland West Airport Knock. I know she is fully aware of the situation currently faced by the airport. When one thinks that in 2019 some 807,000 people travelled through Knock airport, this year, at very best, there will be 170,000. That will be a much harder figure to reach now given the decision by Ryanair last week to, effectively, shut down almost all of its winter services, bar seven. Ryanair took that decision as a consequence of not being able to deal with the current travel restrictions. That is a different row. I want to focus on the airport.

Last week in the budget, which we welcomed, allocations were given specifically to Shannon and Cork airports because of the particular cash flow difficulties in protecting the cash balances at those regionally based airports. However, we have not been able to get any detail as to how much money will be given from the regional airports programme to Ireland West Airport Knock and to Donegal and Kerry airports.

The regional airports programme is traditionally run successfully and its support for regional airports is welcome. The Minister of State must accept, however, that this year it is not fit for purpose in a Covid-19 environment. Our regional airports do not have any non-core income this year. Their car parking and retail income is destroyed and, unfortunately, the employment they give to hundreds of families across County Mayo has been absolutely hammered this year. Staff who were laid off completely when the airport was fully closed are now on short-time work. While they have the support of the previous temporary wage subsidy scheme, TWSS, now called the employee wage subsidy scheme, EWSS, and the rates remission scheme, it will not be enough to sustain the future of the airport.

We cannot wait for the 2021 regional airports programme. There needs to be a special allocation for 2020 extraordinary losses that will sustain cash flow and allow the airport to prepare itself for 2021. I do not know what the travel forecasts are for 2021. The Minister of State might be more privy to that information. They do not look very encouraging from this vantage point but we cannot turn our backs on Ireland West Airport Knock and we cannot stick our heads in the sand and hope it will survive.

In 1986, the week the airport opened, The Western Peopleheadline stated that it could not be done. It was done because of people power. It was done in spite of tremendous opposition at the time from the permanent government. We must regain that spirit. There was irony in the coverage by the Irish Examinerat the weekend of the troubles of Cork Airport that summoned up the spirit of the late Monsignor Horan in defending Cork Airport. That is what we need from the Minister of State. We need that spirit. We need that sense that it can and will be done in 2020.

Hildegarde Naughton (Galway West, Fine Gael)
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I thank Deputy Calleary for providing me with the opportunity to speak about the impact of Covid-19 at Ireland West Airport Knock and, in particular, with regard to the decision of Ryanair to reduce its services.

Like all airports, Ireland West Airport Knock has been fully exposed to the intense decline in global aviation activity and, unfortunately, the decline has been further compounded by Ryanair's announcement to cut its winter capacity at the airport. As a key player in delivering high-quality international connectivity to the western region, I am fully aware of the significant impact of this latest news on the airport.

Of course, the decision by Ryanair to cut flights was part of a wider move by the company to cut its capacity on flights right across Europe. This development, therefore, was not entirely unexpected given the low booking rates to the end of this year. The challenges faced by the aviation industry are immense and totally unprecedented in living memory. In that context, I fully appreciate the growing concerns regarding the long-term economic viability of many airports, particularly smaller aviation enterprises like Ireland West Airport Knock.

I want to assure Deputy Calleary, however, that the continued viability of these airports is important to this Government. As the Deputy will be aware, policy on regional airports seeks to optimise conditions for regional development and connectivity both for social and economic benefits. As employers, they contribute to the local economy and employment is also supported through the various ancillary services they provide. This is why this Government took strong and immediate action to assist business and protect employment at the outset of this crisis. A comprehensive suite of generalised supports for all companies has been put in place. These include the wage subsidy schemes, grants, low-cost loans, the waiver of commercial rates and deferred tax liabilities.

Ireland West Airport Knock has received a range of supports through these measures. That aside, I am aware that Ireland West Airport Knock is still experiencing an unprecedented strain on its financial resources and has made very difficult decisions to manage that in a responsible way. Where lay-offs have arisen, people have been supported through the Government's pandemic unemployment payment, PUP. Ryanair's announcement can only have made matters worse in that regard and I empathise with all the employees at the airport, both directly and indirectly, who are impacted by this announcement.

Unfortunately, this situation is not unique to any one airport in Ireland or, indeed, internationally at present. I wish to remind the Deputy, however, that Ireland West Airport Knock is one of the airports receiving Exchequer support as part of this Government's regional airports programme. Historically, Ireland West Airport Knock has been well supported through this Government-backed programme. Last year, for example, it received €9.4 million in Exchequer funds. The majority of that funding went towards its runway overlay project. This year to date, Ireland West Airport Knock has received capital support of over €1 million and it is also eligible to apply for operational supports under the programme. My Department recently invited Ireland West Airport Knock, along with Donegal and Kerry airports, to apply for current funding of which a total of €3.5 million is available this year. This funding is typically paid to eligible airports in December of every year. Last December, for example, Ireland West Airport Knock received over €1.7 million in operational supports.

In keeping with this Government's priorities for regional development I am currently finalising a new regional airports programme for 2021 to 2025. This will give funding certainty to Ireland West Airport Knock over a five-year timeframe, helping the airport to remain viable as it transitions through the various phases of Covid-19. I am pleased to advise the Deputy that I have secured €21.3 million in funding for the programme in 2021.

I wish to advise the Deputy that all support mechanisms for the aviation sector will continue to be reviewed in the context of the Government's plans for international travel, having regard to the recommendations of the aviation task force and the forthcoming national economic plan.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Minister of State for her response. Will that €3.5 million be paid out to the three airports in 2020? Ireland West Airport Knock will need €3 million of that alone because that is the kind of loss it is facing. In the context of €10 million being paid to Shannon and Cork airports, I believe €3 million for an airport that delivers over 800,000 passengers is a pretty small ask.

I welcome the multiannual funding and acknowledge that. How much of the €21.3 million for the programme for 2021 is broken down towards the public service obligation, PSO, route and how much is broken down for capital or expenditure? How much of that €21.3 million in 2021 will actually be given to operational expenses? While I welcome the multiannual funding, unless we get decisions in the next few weeks, by the end of five years Ireland West Airport Knock will be in a different place from where it could be.

As the Minister of State said, this time last year we were moving with the runway allocation, the majority of which was paid for from within the airports own resources. We are, however, also looking at the area around the airport. We had the strategic development plan in place and developing it to its potential was always envisaged. However, here we are 12 months later as a consequence of Covid-19, which I accept, and the airport is once again fighting for survival.

All we are looking for is a level playing pitch, and similar to the announcement made last week of €10 million to airports which previously got substantial funding in the form of debt write-offs, new major terminal buildings, etc., I ask that our airport, Ireland West Airport Knock, gets a level playing pitch in recognition of its size. Maybe it is time to separate it from the regional airports and give it an acknowledgement of the role that it plays as a very major airport on the Atlantic economic corridor and on the west coast.

Hildegarde Naughton (Galway West, Fine Gael)
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I assure the Deputy that this Government is fully committed to our airports and especially to airports like Ireland West which facilitates tourism and economic development for the entire region. Like many of our small airports, Ireland West Airport Knock plays a key role in making the region accessible in that context. The Government is acutely aware of the effects Covid-19 is having an all airports, on the wider industry, and most importantly on people whose jobs have been directly affected by this pandemic. We are fully committed to doing what we can to help the aviation sector and consideration of other financial measures has not been ruled out. As the Deputy is aware, the task force for aviation recovery made recommendations on how to support the industry in the short term and to provide stimulus through the recovery period. As was already mentioned, these will be considered as part of the forthcoming national economic plan.