Dáil debates

Tuesday, 16 November 2021

Ceisteanna Eile - Other Questions

Aviation Industry

9:30 pm

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

69. To ask the Minister for Public Expenditure and Reform if he will provide an overview of NSO 6 of the National Development Plan 2021-2030; and if he will make a statement on the matter. [55877/21]

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I wish to ask the Minister for Public Expenditure and Reform if he will provide an overview of NSO 6 of the new National Development Plan, NDP, 2021-2030; and if he will make a statement on the matter.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for raising the issue. At the outset, it should be noted that my Department, in carrying out its role in co-ordinating the NDP review, does not consider the merit of individual projects or sectoral policy strategies, as this is primarily a matter for individual Departments and agencies.

With that point noted, I would be glad to give the Deputy an overview of the NSO 6, which is the delivery of high quality international connectivity. As an island, continued investment in our port and airport connections to the UK, the EU and the rest of the world is integral to underpinning international competitiveness. It is also central to responding to the challenges as well as the opportunities arising from Brexit. The relevant sectoral strategies here are the national aviation policy, the national ports policy and the telecommunications chapter of the National Marine Planning Framework which relates to international telecommunications connectivity. These strategies play a critical role in identifying the goals and priorities for the sector and are therefore critical in informing the investment projects set out in the NDP.

In terms of our airports a range of investment are planned and under way. A new €50 million control tower has been completed at Dublin Airport and the new north runway will be completed next year. Cork and Shannon Airports will continue to be supported in their roles as key tourism and business gateways for their regions. Continued Exchequer support for smaller regional airports, including Donegal, Kerry and Knock, is planned under the regional airports programme.

Three major capital infrastructure programmes are currently ongoing in tier 1 ports, namely, Dublin, Cork and Shannon Foynes. For example, the Port of Cork is investing to redevelop the port’s existing facilities at Ringaskiddy and is due to be fully operation in the coming months. The masterplan for Rosslare Europort was granted planning permission in quarter 4 of 2020 and has identified a number of key infrastructure investments to make better use of available capacity, improve efficiencies and target specific sectors, while promoting the benefits of congestion-free access to European and UK markets.

These are just some of the many investments which will be delivered under this NSO in the coming years to support Project Ireland 2040. Further details on projects by NSO, can be found on the investment tracker on gov.ie/2040.

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his response. All Members of the House are aware that aviation and tourism have been the two sectors most decimated by the Covid pandemic. Experts in the sector estimate that the pathway to recovery will take four to five years. That, in itself, is devastating for all those who depend on it. In the mid-west, we very much see Shannon Airport as being a catalyst for virtually all economic activity. We live and die on that. Its recovery will be crucial to our regional recovery.

I read with interest chapter 11 of the NDP, which deals with a whole realm of international connectivity. We are going to be at a very low starting base coming out of Covid, but within that there are opportunities. There are a number of issues I wish to raise in the Chamber today. Chapter 11 references the existing 2015 national aviation policy for Ireland. I believe that is now defunct. It only exists in name because aviation does not resemble anything referred to in that policy. The NDP alludes to a new national policy for aviation. I would be very keen to hear the Minister's thoughts on that.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy. I fully agree with his sentiment on the importance of Shannon Airport to the mid-west region. I acknowledge his continued support for, and his regular advocacy in respect of, the continued development of Shannon Airport. As the Deputy is aware, on budget day we announced a €126 million aviation funding package, of which €90 million will be made available in a very short period to time to the State airports, namely, Dublin, Shannon and Cork airports.

The same methodology was used in respect of the €20 million already provided to State airports this year. In addition, funding of €36 million will be provided next year to support regional airports and public service obligation air services through the regional airports programme. It is significant that due to reduced passenger numbers and as a direct result of Covid, Shannon Airport and Cork Airport are eligible for supports under this programme. I agree with the Deputy that the recovery will be gradual and the Government will be there to support Shannon Airport and the other airports on that journey in the period ahead.

9:40 pm

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister. I am delighted to hear that Shannon Airport and Cork Airport can continue to avail of supports under the regional airports programme. For too long they were excluded or found it difficult to come under it given the annual passenger thresholds. There will need to be multi-annual investment. The Minister mentioned public service obligation routes. We have to think in a different realm so far as they are involved. It cannot be all about small aircraft going out to the Aran Islands or aircraft going to Kerry to provide rural regional connectivity. As we come out of Covid, there will be merit to also having European hub connectivity on a public service obligation basis until we get to a point of recovery. We will get transatlantic routes back to Shannon in the spring. We are slowly improving the Heathrow service but we need connectivity to places such as Amsterdam, Charles de Gaulle or Frankfurt. They are where onward connectivity to the eastern markets is. Public service obligation also needs to be looked at through this lens as we come out of Covid.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy. It is ultimately about services and routes for us, as an island nation, as we continue to grapple with Covid and as we seek to rebuild our international connectivity. It will be very important that we continue to provide extensive support to our airports. This is why we have made an intervention of the magnitude we have in the context of the budget for 2022. As the Deputy knows, some of this funding can be made available immediately. We recognise this is a significant challenge.

The Deputy touched on the impact of Covid on the tourism sector. We all know the role that aviation must play in bringing tourists to our country and for continued industrial development and the attractiveness of the mid-west region . It is vital that Shannon Airport secures once again its status as an important hub and a gateway to the mid-west region. I look forward to working with the Deputy, other colleagues and the Minister Transport, Deputy Eamon Ryan, as we continue to support Shannon.