Seanad debates

Friday, 6 November 2020

Nithe i dtosach suíonna - Commencement Matters

Regional Airports

9:30 am

Photo of Colm BrophyColm Brophy (Dublin South West, Fine Gael) | Oireachtas source

I thank Senators Chambers and Murphy for providing an opportunity to speak about the Government's plans for the continuing support for Ireland West Airport Knock through the Covid crisis. I am happy to speak today on behalf of the Minister of State, Deputy Hildegarde Naughton.

At this stage there can be no doubt about the impacts of Covid-19 on the aviation industry and the knock-on effects this drop in activity is having on domestic tourism and our regional economies, particularly in the west. It is of great concern to me that Ireland West Airport, like all our airports, has been fully exposed to the consequences of Covid.

The Government is also acutely aware that the situation in Ireland West Airport Knock has been further compounded by Ryanair's most recent decisions to cut its winter capacity at the airport and to cancel all services for a four-week period from the end of next week until mid-December. The airport is a strategic player in delivering high-quality international connectivity to the western region, so the devastating significance of this latest news on the airport is fully appreciated. The decision by Ryanair was a commercial one in light of poor forward bookings for the period in question and forms part of a wider move by the airline to cut its capacity on flights across Europe. This does not detract, however, from the disappointment being experienced by Ireland West Airport and other regional airports that have been impacted, namely, Cork, Kerry and Shannon airports.

As the situation unfolds, I know that the Minister of State, Deputy Naughton, fully appreciates the growing concerns about the future survival of many airports, particularly enterprises such as Ireland West Airport. I assure the Senators that the continued viability of these airports is very important to the Government. This is why, at the outset of this crisis, the Government took strong and immediate action to assist business and protect employment. A comprehensive suite of generalised supports for all companies has been put in place. These include wage subsidy schemes, grants, low-cost loans, a waiver of commercial rates and deferred tax. In this way, a significant level of Exchequer support has been made available to the aviation sector, including Ireland West Airport.

That aside, I know that the Minister of State, Deputy Naughton, is fully aware that Ireland West Airport is still experiencing an unprecedented strain on its financial resources and has taken very difficult and responsible decisions to manage those resources since the Covid crisis began. The airport's efforts in this respect are acknowledged. Where lay-offs have arisen, the Government has ensured that employees were supported through the pandemic unemployment payment.

I have also been informed and wish to remind the Senators that Ireland West Airport is one of a number of airports receiving ongoing Exchequer support as part of the Government's regional airports programme. Last year, for example, I understand the airport received €9.4 million in funding from the State. The majority of that funding went towards its runway overlay project. This year, Ireland West Airport has received capital support of over €1 million and is also eligible to apply for operational supports from an available budget of €3.5 million.

In keeping with the Government's priorities for regional development, I have been advised that the Minister of State, Deputy Naughton, is finalising a new regional airports programme for 2021-25. This will give funding certainty to Ireland West Airport over a five-year timeframe, helping the airport to remain viable as it transitions through the various phases of recovery from the Covid pandemic. I am also pleased to advise Senators in that context that the Government has confirmed its commitment to the continuation of the programme in budget 2021 by securing more than €21 million for airports such as Ireland West Airport.

I am advised by the Minister of State that all support mechanisms tor the aviation sector will remain under active consideration. In the context of the forthcoming national economic plan, the Government will consider further measures to support the industry to ensure that its core capability is preserved in order that it can recover quickly and be in a good position to support wider national economic recovery when circumstances allow. I am confident that the range of supports that are in place, coupled with those in development, will help Ireland West Airport to weather this crisis in the short to medium term.

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