Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

Ba mhaith liom buíochas a ghabháil leis na Seanadóirí as ucht an t-ábhar seo a ardú inniu. I am taking this matter on behalf of my colleague, the Minister for Minister for Transport, Tourism and Sport, Deputy Ross.

There are no plans to provide Exchequer funding to the City of Derry Airport. As the Senators will be aware, the Department of Transport, Tourism and Sport has a five-year regional airports programme, covering the period 2015 to 2019, to provide targeted supports to our four regional airports, namely in Kerry, Donegal, Waterford and Ireland West Airport Knock. This programme was approved by the European Commission in August 2015 under the 2014 EU guidelines on state aid to airports and airlines.

Our programme provides for Exchequer support towards safety and security-related projects and activities at the four regional airports. It also supports the two public service obligation, PSO, air routes from Donegal and Kerry airports to Dublin. The national aviation policy published by the Department last August acknowledges the role played by the regional airports in Kerry, Donegal, Waterford and Knock as being important in promoting a level of international connectivity to support the tourism and business sectors in their regions. The policy also confirms that these four airports are being given the opportunity to grow to viable, self-sustaining positions. In this regard, our policy is to continue to support safety and security projects and activities at these airports, where appropriate. During the summer holidays, I had reason to be at Donegal Airport in Carrickfinn. I was very much taken by the level of service provided and the facilities available there.

I am aware of the recent plans by Ryanair to reduce services from the City of Derry Airport next year and I appreciate the challenge this poses for the authorities there. The Irish Government provided the City of Derry Airport with funding support in the past. There was a PSO on the Derry-Dublin route for ten years, from 2001 to 2011. The subsidies needed to support that PSO were fully funded by the Irish Exchequer. It ended following a value for money review of Exchequer expenditure on our regional airports programme, published by the Department in 2011. The Derry-Dublin route was not the only PSO service to be ended at that time. The PSO routes linking Knock, Galway and Sligo were also discontinued. The only PSO routes we have today are those linking Donegal and Kerry airports with Dublin. In addition, the Irish and UK Governments jointly funded substantial safety works at City of Derry Airport between 2005 and 2012. The two Governments contributed 75% of the cost of those works on a 50-50 basis, while the balance of 25% was provided by the airport owner, Derry City and Strabane District Council.

While the Derry-Dublin PSO instituted in 2001 satisfied the regulatory criteria at the time for PSOs, the political dimension also played a role in the initiative in our co-operation with the UK Government in funding the runway safety works at City of Derry Airport. The Good Friday Agreement had been signed in 1998 and endorsed by means of referenda, North and South. While there is much work still to be done, what has been achieved in the peace process in facilitating reconciliation over the past two decades is exceptional.

The financial landscape also changed compared to 15 years ago. We must ensure we make the best use of limited Exchequer resources. The funding available to the Department in the coming years will be fully required to support our two PSO routes to Donegal and Kerry, while continuing to provide support to our four regional airports in the areas of safety and security.

I was pleased to note earlier in the week that the Northern Ireland Executive announced a £7 million package to assist development and growth in and around the City of Derry Airport, including £2.5 million to support routes from the airport.I understand that the airport and the city council are in discussion with the Department for Transport in the UK to endeavour to secure PSO from the UK authorities for an air service that would link Derry with a London hub. City of Derry Airport considers that such a PSO route would be hugely beneficial for business and tourism users given that the Ryanair service to Stansted Airport is due to cease next March. I echo the sentiments of the First Minister and the Deputy First Minister that their package of support will enable City of Derry Airport to invest in route development and capital projects and, ultimately, allow the airport to plan for the future.

I will bring the specific issues raised by the Senators relating to tourism and the possibility of a meeting to the Minister's attention. I could meet Senator Mac Lochlainn to explore the issue further.