Kieran O'Donnell (Limerick City, Fine Gael)
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The Minister for Transport, Deputy Eamon Ryan, and the Minister of State, Deputy Hildegarde Naughton, undertook to commission a review of the financial situation of Shannon Airport, which was carried out by NewERA. I understand that, according to that report, there is a need to continue to provide financial supports for Shannon Airport into 2022. The regional airports programme, which has been extended to Shannon Airport for 2022, must be extended permanently. What is in the report in that regard? We welcome the fact that €10 million was announced the day before yesterday for Shannon Airport under aviation supports, with €4.6 million for route activation programmes. Shannon Airport needs a connection into Europe. The Heathrow route is now back. It will go back to two flights a week in February and three flights a week in March and we hope to have an early morning flight as well. Transatlantic flights to Boston and New York with Aer Lingus will also return early in the new year. I ask the Minister of State to outline the recommendations contained in the medium-term review carried out by NewERA into the financial situation at Shannon Airport. We need to hear that the Government is committed to providing financial supports in the medium term and with regard to Covid more particularly. The regional airports programme should be extended to the airport permanently, not just for 2022. Shannon Airport's passenger numbers have reduced from 1.4 million to just under 400,000 last year, which is a reduction of nearly three quarters. It has been exponentially hit. I await the Minister of State's response regarding this report.

Joe Carey (Clare, Fine Gael)
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I am disappointed that neither the Minister for Transport nor the Minister of State, Deputy Naughton, are here for this debate. I understand that the Minister brought to Cabinet a report that was carried out by NewERA on the financial situation of the Shannon Group, including Shannon Airport. It is important that the report is published and that the recommendations are made known and implemented. Deputy O'Donnell mentioned that Shannon Airport is now included in the regional airports programme, which is very welcome, but that must be done on a permanent basis. Doing so would be in total compliance with EU state aid rules and that vital funding stream would give some certainty to the airport regarding its future. The national aviation policy is set to be reviewed. I am chair of the Shannon Airport Oireachtas group, which works with Deputies and Senators from across all parties in counties Clare, Limerick and Tipperary. We hope to extend that to Galway too. We are going to work with the airport to put together a proposal for the Minister on the national aviation policy. We need to give a fair slice of the national aviation cake to Shannon Airport because it is a driver of economic activity in the west and mid-west, supporting 46,500 jobs. It is important that the recommendations contained within this report are implemented. I welcome the allocation of a further €10 million to the airport that was announced during the week but I would like to see that type of money being invested in the airport on a permanent basis.

Joe O'Brien (Dublin Fingal, Green Party)
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I thank both Deputies for their questions on this matter. Regarding the review carried out by NewERA, this is a requirement under the code of practice for the governance of State bodies. Within the first six months of each financial year, commercial State bodies, including the Shannon Group, are required to submit to their relevant Ministers a draft annual rolling five-year business and financial plan. Therefore, in May 2021, Shannon Group submitted financial forecasts, although, due to the uncertainty arising from Covid-19, they covered the period from 2021 to 2022 only. Given its role as a financial adviser to the Minister, the financial forecasts were reviewed by NewERA. In July 2021, a report was submitted by NewERA to the Departments of Transport and Public Expenditure and Reform for consideration. Given Shannon Group's status as a commercial State body, the details of the report are confidential and commercially sensitive.

As part of its report, NewERA provided observations on the significant financial impact on, and challenges for, Shannon Group arising from Covid-19. This financial analysis was assessed by the Department of Transport in the context of the 2022 Estimates process and its engagement with the Department of Public Expenditure and Reform in this regard. The Minister for Transport, Deputy Eamon Ryan, and the Minister of State, Deputy Hildegarde Naughton, also updated the Government on the financial position of Shannon Group as part of a recent memorandum to the Government on Shannon Group and aviation supports more generally.

The Deputies will be aware that, early in the Covid-19 crisis, this Government put in place a range of economy-wide supports to help to mitigate the impacts of Covid-19. Shannon Group has, as appropriate, availed of these supports, including the recently extended employment wage subsidy scheme. In addition, Shannon Airport is benefiting from aviation-specific supports under the regional State airport programme, which was put in place for 2021. This is in addition to €6.1 million allocated by the Government to ensure the completion of a safety and security project at the airport this year. Shannon Airport, and our other State and regional airports, have also received funding under the Covid-19 supplementary supports schemes, which have an increased budget of €116 million. This funding, which the Minister of State, Deputy Naughton, announced yesterday following the recent approval from the European Commission, provides State airports, including Shannon Airport, with the flexibility to roll out route incentives and charge rebates, with a view to supporting recovery and growth of connectivity.

In total, this year the Government has allocated an unprecedented €24 million to Shannon Group in direct grant support. This is in addition to the aviation-specific supports granted last year and the economy-wide supports that Shannon Group has availed of throughout the crisis. I assure the Deputies that the Government will continue this support into 2022. Shannon Airport is eligible for continued Government support under the regional airports programme next year. Given the challenges ahead, the Government has approved an allocation of €36 million for the programme in 2022. This is an increase of some €15 million on the allocation provided under the programme this year and reflects the increased budget necessary to support both Shannon and Cork airports under the programme along with Ireland West, Kerry and Donegal airports in 2022.

Looking beyond Shannon Airport, I understand that Shannon Group's engagement with the relevant local authorities on the transfer of Shannon heritage sites to them is progressing well. However, due to the complexities involved in the transfer, due diligence exercises must be concluded before any necessary formal consents of the Ministers for Transport and Public Expenditure and Reform can be given to execute any transfer of the sites, with the agreement of the Minister for Housing, Local Government and Heritage.

As the Deputies will be aware, Pádraig Ó Céidigh was recently appointed as chairperson of Shannon Group. I am pleased to let them know that the Minister for Transport and the Minister of State, Deputy Naughton, had a good meeting with Mr. Ó Céidigh last Friday. They discussed the current status of the group and the key challenges, risks and opportunities for the future as Shannon Group continues to successfully position itself for recovery.

Kieran O'Donnell (Limerick City, Fine Gael)
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I am a little surprised that this report was given to the Department last July. I am also surprised that the Minister of State said it was confidential and commercially sensitive because I read about its contents in the Irish Examiner. The article stated, "A review of Shannon Airport has found that the group should continue to receive State funding, the Cabinet has heard." I am a Deputy for the mid-west. Shannon Airport is vital. This is very simple. Shannon Airport must be included in the regional airports programme. Clearly, this report stated that it needed funding for next year. That is what the media reports are telling us.

We know that because flight numbers are down. I want the message to go back to the Minister and the Minister of State, Deputy Hildegarde Naughton, loud and clear that we expect the regional airports programme to be extended to Shannon Airport on a permanent basis. We need route connectivity. We welcome the €4.6 million in funding announced yesterday included in the €10 million for route supports. We cannot exist on the western seaboard without support. The national aviation policy comes up for review very shortly and we will make recommendations in that area as a collective group. I want to hear that the Minister of State will take the message back to the relevant Ministers that the regional airport programme needs to be extended to Shannon Airport on a permanent footing.

Joe Carey (Clare, Fine Gael)
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I thank the Minister of State for his response. I am surprised that the report is confidential, will not be published and that we cannot see its recommendations. I have no doubt that the Government has supported Shannon. It put €23 million into the airport last year. We need certainty and to get into the regional airports programme on a permanent basis. The Minister of State indicated that this will happen next year, which is welcome. We need to be included in it on a permanent basis in order that we have certainty and will be able to draw down money to carry out essential capital works. If we do not get that support, the airport group has to finance it itself. I join my colleague, Deputy O'Donnell, in insisting that we are included in the programme and that the Minister of State bring that message loud and clear to the Minister and the Minister of State, Deputy Hildegarde Naughton.

Joe O'Brien (Dublin Fingal, Green Party)
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The Deputies' message is clear and straightforward. I will convey it to the relevant Ministers. So far this year, to the end of last month almost 325,000 passengers used the airport. This is an 80% reduction on the same period in 2019, when approximately 1.7 million passengers used the airport. While passenger numbers remain suppressed, it is welcome to see that passenger numbers for last month were significantly up on the same period in 2020. There have been no transatlantic flights from Shannon since the onset of Covid, but the commitment by Aer Lingus and United Airlines to resume transatlantic flights from March next year is to be welcomed. I can also inform the House that Aer Lingus will increase flights on the London Heathrow to Shannon route to twice daily from 18 February and three times daily from 27 March. Ryanair is planning to operate 20 routes, including the first Shannon to Malta service.

The Omicron variant has the potential to significantly impact on the sector, however. While the implications remain unclear, I can assure the House that the Government will continue to monitor the financial impact of Covid-19 on the Irish aviation sector on an ongoing basis, in consultation with all key stakeholders and relevant Departments.

It is important to note that before Covid-19, the Shannon Group was successfully delivering its commercial mandate, resulting in the group being an economic driver in the mid-west region. It was on a growth trajectory since its formation in 2014 and the Government wants this growth to return for the benefit of the region and the national economy. With the substantial supports provided by the Government to date, I am confident that Shannon Airport and all of our airports will be well positioned for the recovery that we hope to see continue in the sector next year.