Seanad debates

Thursday, 24 September 2015

Commencement Matters

Air Services Provision

10:30 am

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael) | Oireachtas source

I thank the Senator for raising this important issue and I acknowledge that her colleague, Senator Naughton, has been in contact with me on a regular basis about this important issue. I should say that since the air service is the subject of an ongoing public procurement process, I have been advised that it would not be appropriate to make any comment on that process or to say anything that might prejudice it in any way or prejudice any appeal that might be made with regard to the outcome of the procurement process by way of a judicial review to the High Court.From the outset, it has always been my aim to ensure that there is a continuation of an air service for the Aran Islands. As required under the relevant EU regulation, my Department commissioned a comprehensive review of the need for a PSO service to the Aran Islands in 2014. This review was published in May of last year. The review covered the period 2003 to 2013 and I am satisfied that this review was both rigorous in its investigations and fair in its findings. The review recognised the importance of the air service to the island communities and its contribution to island life.

At the same time, the report recognised that the cost of providing the air service had increased dramatically by 136% during the ten-year period under review, that the efficiency of the programme had deteriorated over the period in question and that the continuation of this trend into the future was unsustainable. Based on the report's recommendations and mindful of the need for value for money in providing this service, my Department requested that the Office of Government Procurement, OGP, as the agency charged by the Government with administering procurement services for the State, undertake a tendering process in order to put in place an air service contract for the period from 1 October 2015 to 30 September 2019. Prior to this tendering process being undertaken, officials from my Department met with representatives of the island communities in order to listen to their views in regard to the service.

The tendering process was undertaken in accordance with the requirements of EU Regulation 1008/2008 which governs public service obligations and air services. I am sure the Seanadóir will appreciate that, as Minister for State, I had no involvement in the procurement process itself following my decision that a PSO air service should continue to be provided. I am, of course, well aware of the issues Senator Healy-Eames has raised today about the mainland departure point for the air service and the type of aircraft to be used.

On Galway Airport being included in the request for tenders, I would like to make it clear that, from the time this PSO route was originally established under EU regulations in 2001, both Galway Airport and Na Minna Airport were identified as mainland departure points. This allows for the widest possible competition and consequential potential for value for money, which must be a central component in any service to be paid for out of the public purse. It is important to emphasise that this tender competition, in so far as it pertains to the inclusion of the mainland departure points of Galway Airport and Na Minna Airport, does not in any way deviate from previous tender competitions for this service.

On the type of aircraft that can be used to provide this service, the request for tenders allowed for all types of aircraft, as Regulations (EC) No. 1008/2008 does not define or limit the categories of aircraft to which PSO routes may be offered.

I have met representatives of the island communities on a number of occasions since the announcement of the preferred tenderer and their concerns about the tendering process and the future of the air service have been brought to my attention. I want to assure the Seanadóir and everyone concerned that I will continue to endeavour, within the scope available to me, to ensure that an air service that serves the interests of the islands continues into the future. I am conscious of the time pressures and that the current contract comes to an end at the end of this month. I am aware of the meeting that took place in Galway yesterday. I ask today for space to allow the people in the OGP tasked with the responsibility of carrying out the process and the officials from my Department to evaluate a number of issues which have arisen in the recent past. I also wish to acknowledge the fact that there have been a number of meetings on the islands, some of which were attended by politicians. I understand 18 politicians went to the public meetings on the three islands. The feedback I am receiving from various politicians is that all those meetings were held in a very dignified way and I wish to acknowledge that fact as well.

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