Paddy Burke (Fine Gael)
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On the first matter, I welcome the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, to the House.

David Cullinane (Sinn Fein)
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It is nice to be making history today with the first Commencement matter. I welcome the new changes. I welcome the Minister, Deputy Donohoe, to the House as well. We were going to discuss this issue before Christmas, but the Minister had other arrangements on the day I tabled the motion. I thank him for coming to the House to discuss it on our first day back.

I support regional airports because they are very important for local and regional economies, especially in the south east. Waterford Airport, which serves the entire south-east region and not just Waterford, is important for business, enterprise, tourism and the economy generally in the south east. It has been providing air transport services for the region for the last 30 years. It currently provides a number of scheduled services. The Minister will be aware that Flybe is withdrawing all of its services in the first quarter of this year. This will create a difficulty for the management and the board of the airport. They are actively seeking alternative carriers at present.

Waterford Airport is a base for search and rescue operations. The Irish Coast Guard's Sikorsky S92, which is based at the airport, provides emergency rescue cover for the entire south and east of Ireland, including medical evacuation, 24 hours a day, seven days a week. The airport also has an aero club with between 80 and 100 members. Obviously, corporate jets use the airport for the purposes of doing business with enterprise in the region. Genzyme, Sanofi, Audi, NuVasive and West Pharma are among the companies that have used the airport for these purposes. It is a hugely important regional airport for the south east.

Passenger traffic at the airport for the full calendar year of 2014 increased by 17.9% by comparison with the 2013 figure. This shows that the airport is serving its catchment area. There is certainly potential at Waterford Airport. People want to use it. I met representatives of the airport's management, including its chief executive officer and its general manager, last week. They are very grateful for the operational expenditure subvention they get from the Department of Transport, Tourism and Sport and the capital expenditure subvention they also get. They have not received any capital expenditure investment for infrastructural development since 2007.

Everybody accepts that we are in straitened times. Everybody accepts that the capital funding of all sorts of projects was put on hold and frozen because of the economic situation we found ourselves in. In 2007, a previous Minister for Transport promised under Transport 21 that €22.3 million would be provided for the airport. This funding was to be used to extend the runway to 2,300 m, which would allow much bigger aircraft to use the airport. I think the airport accepts that such an extension is not possible at this time. It has opted for a slimmed-down version. I understand it has received planning permission for an extension of up to 350 m. That will make it somewhat easier for the airport to get alternative carriers with different types of aircraft to use the airport.

Can the Minister remind us of what funding has gone into the airport from the State? Can he give us his own views on regional airports and Waterford Airport in particular? Is he aware of the issues with scheduled services at the airport that I have mentioned? What level of funding, if any, is he prepared to put in place at the airport?

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank Senator Cullinane for raising this difficult issue. I am pleased to be here for the first execution of the new Commencement Debate in the Seanad. If we had dealt with this matter under the previous system on the date the Senator hoped to have such a discussion, I think the debate would have happened at 3 a.m. or 4 a.m. I think this is a better way for the Senator and I to handle the matter.

David Cullinane (Sinn Fein)
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Hear, hear.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Department of Transport, Tourism and Sport has been informed by Waterford Airport that Flybe will be withdrawing its services with effect from the end of March 2015. Flybe is the only commercial operator currently using the airport. It operates services on the Manchester and Birmingham routes. It is understood that the withdrawal of Flybe services is not limited to Waterford Airport, as at least four other European airports are similarly affected. This withdrawal comes at a particularly unfortunate time for Waterford Airport.

The load factors on the two Flybe routes have seen a significant improvement last year with passenger numbers up almost 18% compared to 2013. Therefore, the news of the withdrawal of these services was most unexpected for the airport.

Any plans to address the reduction of services or to introduce new routes are entirely commercial in nature and are a matter for the board and management at the airport. Therefore, I do not have a role in such matters. However, I understand that the airport is moving to identify a replacement carrier to continue the routes after March next year. I am aware of the challenges facing Waterford Airport arising from these developments in addition to Aer Arann, now Stobart Air, withdrawing its London-Luton route in 2013.

In recognition of Waterford Airport's contribution to balanced regional development, the Exchequer has provided support to the airport under the Regional Airports Programme 2011-2014, through the CAPEX and OPEX schemes. The OPEX scheme which deals with operating expenditure provides compensation for subventible losses; in other words, the costs incurred in providing core airport services in so far as these costs cannot be fully met by prudent commercial management. Waterford Airport received more than €1 million in funding under this scheme in 2014. This brings the total OPEX funding granted to the airport since 2006 under this programme and the previous programme to €11.3 million.

The CAPEX scheme provides for funding for safety and security projects at the regional airports to ensure that our airports comply with the necessary domestic and international regulations. In 2014 alone, more than €500,000 was paid to the airport for safety and security related projects, bringing the total capital funding paid to Waterford since 2006 under this programme and the previous programme to €6.4 million.

In November 2011 funds were allocated under the CAPEX scheme for the construction of a runway end safety area, RESA, which involves the purchase of land at the southern end of the airport to facilitate this work. This work is regarded as essential for safety purposes by the Irish Aviation Authority, IAA, to ensure compliance with safety regulations. However, CPO process for the land purchase was referred for arbitration and the hearing has now been delayed until April 2015. The exact amount to be paid for the lands will be determined through the arbitration process.

I should point out that the CAPEX scheme does not cover developmental projects at the airport, such as the proposed runway expansion. I understand that the airport board is committed to raising the necessary funds with assistance from local businesses and local authorities in the region for that project. The loss of Flybe's services, along with the need to replace the key London-Luton route means that the airport is facing a very challenging future. I urge all concerned to work together to arrive at a successful outcome for the airport which in turn will benefit the business and tourism sectors in the region.

David Cullinane (Sinn Fein)
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I welcome the Minister's response and acknowledge the subvention that has been made by the State to the airport over a long number of years. Perhaps I can take the Minister back to the point I made about the promises made under Transport 21 and the €22.5 million. Everybody accepts at this point in time that is not attainable but an application has been made to the new Waterford City and County Council to extend the runway by 350 m. It is a live application. It will help the airport to position itself to attract larger aircraft and make it easier to get new routes which is what we want to achieve, an issue of which the Minister is supportive. We are aware of media reports whereby Knock Airport has been promised 90% of infrastructural funding. If it is good enough for Knock Airport it should be good enough for Waterford Airport. I wish to impress upon the Minister the importance of regional airports, including Waterford Airport, to the economy in Waterford and not only Waterford but the entire south east.

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Senator. I am absolutely aware of the importance of regional airports to national economic development and also, more particularly, to regional economic development. I have an appreciation of the role the airport has played not only in tourism in the area but also for the business community. The Senator, in his own contribution, named some of the companies that make great use of it.

On the specific question the Senator put to me on the status of the proposed extension to the runway and any commitment from my Department on that, I confirm to the Senator that €405,000 has been approved under the capital expenditure scheme that I outlined earlier, the CAPEX programme, for the purchase of land for that. The reason that authorisation was made was in appreciation of some of the points the Senator was making.

Having regard to the limitations of the scheme and broader European Union law, I am not able to invest in some of the infrastructure works which are required. However, this is the reason local authorities and local businesses in the area are working to find funding. On the Senator's particular comment regarding my support for the runway, as I have stated, my Department has provided €400,000 for the land purchase for the runway. For the Senator's efforts, if one looks at operational expenditure in 2014 alone and the amount of funding that has been made available for that, over €1 million was made available to Waterford Airport to meet the needs in that area. In total, since 2011, €4.6 million has been made available to Waterford for operational expenditure. That is funding it needed and for which it met the criteria. Where possible we provided support for all that work and the work being advanced. I am aware of the challenges being faced now given the loss of Flybe and Stobart. However, I do know that the board are now responding to that to try to find a replacement service.