Paudie Coffey (Fine Gael)
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I welcome the Minister, Deputy Ross, to the House. It is very familiar to him. Indeed, I served a term as Senator with him from 2007 to 2011. I also served a term with him in the Lower House. This is my first opportunity publicly to wish the Minister well with his portfolio. He brings vast experience to the office and I believe he will do a good job. He has a good understanding of what is required in terms of transport, tourism and economic development.

As we heard in the earlier debate, transport and tourism are undoubtedly key economic components of Ireland's economy. Like the roads mentioned by Senator O'Donnell, other infrastructure such as our rail, ports and airports are critical to unlocking the economic potential our regions offer to the economy. I have often compared Dublin and its environs to an economic vortex, where it sucks the economic activity from the regions of this country as well as our young educated people. They come to Dublin where the jobs are and, unfortunately, do not return to the regions. Until we address the long-term strategic decisions of our country for regional development and critical infrastructure development we will not change that situation.

There is a unique opportunity for all of us, including the Minister, to make strategic decisions in the interests of sustainable regional development. For that reason, I raise an issue of which the Minister is well aware, the long-term sustainable future of Waterford Airport. It serves the south-east region, a region that has been under-performing due to the deficits in critical infrastructure. In fairness, some of them have been addressed over the last number of years. With the development of the motorway to Waterford one can see already the economic development it brings. Investments made by the Minister's Department and his predecessors in tourism initiatives have also brought economic activity. I refer to the Viking Triangle in Ireland's oldest city, Waterford, and the Déise Greenway which is due to open later this year and will link the oldest city in Ireland to one of the most beautiful harbour towns in Ireland, Dungarvan. It runs across the mid-county of Waterford with the coast on one side and the Comeragh Mountains on the other.

Waterford and the south-east region are very proud of what they have to offer. However, we need help in terms of delivering the critical infrastructure that will allow us to layer economic activity and employment on top of that. Waterford Airport has experienced some difficulties over the years with operational airlines coming and going. VLM Airlines is the most recent airline at the airport but it has announced it is to discontinue its service to Birmingham and Luton. That is an important connection to the UK, our neighbour, which brings people to the region who will spend there and create the activity I have mentioned.The board and management team at Waterford Airport have worked assiduously in very difficult circumstances. The previous Government supported the airport through the worst economic times this country has experienced by providing grant aid of more than €5 million to keep it going. However, we now need to move to the next level. We must move on and a runway extension at Waterford Airport is critical so that jet aircraft can land there and in order that more operators will be interested in bringing passengers to and from not just Waterford but also the wider south-east region, where all economic indicators are showing that we are underperforming. As a region, the south east can contribute to the economic recovery. It can contribute to job creation, in which we are all interested, but, more importantly, it can contribute to the sustainability of the economy.

The Minister has a critical role to play. I understand that he faces challenges and that he must spend his money wisely in terms of capital investment. If, however, he invests in this project, it will be a move he will not regret.

Shane Ross (Dublin Rathdown, Independent)
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I thank Senator Coffey for his kind words and congratulate him on his election to the House. I look forward to meeting him here in the near future.

I thank the Senator for raising this particular matter. I am well aware of the difficulties he is experiencing, particularly in the context of the airport in Waterford. A colleague, Deputy Halligan, chews my ear off daily about the matter as well. The Senator can rest assured that his raising of it in this House is extremely useful and adds to the strength of the argument which undoubtedly exists. To reassure him and anyone who might think otherwise, I do not believe that the benefit of regional airports can be measured in the annual profit and loss accounts or balance sheets alone. I know there is a serious regional benefit for the whole locality in Waterford Airport and in other airports as well.

My Department has, for many years, operated a programme of support for our regional airports, including Waterford Airport, with substantial levels of funding provided in recognition of their contribution to balanced regional development. The latest iteration of this programme covers the five-year period 2015 to 2019 and was approved in August last year by the EU Commission as being in conformity with its 2014 guidelines on state aid to airports and airlines.

The national aviation policy, which was published by my Department last year, acknowledges the role played by the regional airports in Donegal, Ireland West Airport Knock, Kerry and Waterford in promoting a level of international connectivity to support the tourism and business sectors in the regions in which they are located. I should also mention that an extra €10 million in capital funding is being provided in the programme for Government for the regional airports. This is additional to the €28 million already provided for this purpose in the capital plan 2016 to 2022 and will enhance my Department's ability to further support the four airports.

In terms of capital support, my Department's regional airports programme provides Exchequer funding to the four regional airports to assist them with implementing necessary safety and security related projects, including measures in these two areas that are requisite to comply with regulatory requirements. The funding that is provided by my Department for such safety and security purposes is vital for these smaller airports and it is no exaggeration to say that without this Exchequer support, the airports would almost certainly be unable to continue to facilitate scheduled passenger services. In the past five years, Waterford Airport has received €9.6 million in operational and investment support from my Department. In April of this year, a further €157,500 in grant aid was approved for a number of security projects, including new X-ray equipment, at Waterford Airport.

While our support programme for safety and security measures is important to the airports, it does not extend to investing in new capacity or expansions in airport infrastructure. The Exchequer is not in the business of investing in airports for development purposes and has not engaged in such investment, whether at State airports or regional airports. However regrettable, decisions of that nature - for example, in respect of extending a runway to cater for larger aircraft, expanding the capacity of a terminal building or building a new car park - are commercial matters for airport authorities. I am aware that the authorities at Waterford Airport have ambitions to extend the runway there and I understand that they are pursuing local interests for funding in respect of these plans. I will give them all possible encouragement.

I was disappointed to hear last week that VLM Airlines, the only remaining commercial operator using the airport, has now withdrawn its London-Luton service. VLM also withdrew from another route last month. However, I understand that the airport is in detailed discussions with a number of airlines with a view to securing a replacement carrier.

Paudie Coffey (Fine Gael)
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I acknowledge the Government support that has existed in recent years. I was closely involved in ensuring - in conjunction with the Minister's predecessors - that grant assistance was in place for the past five years. I am also conscious of the efforts of the Minister of State, Deputy Halligan, and am working with him on this matter. I know that this is also a matter of deep interest to my colleague, Senator Grace O'Sullivan, who is present in the House. We, as Oireachtas Members from Waterford and the south-east region, want to work with the Minister. He is correct that the board of management and the management team at Waterford Airport have already undertaken big advances in terms of obtaining compulsory purchase orders on land for the runway extension. They have the support of the local authorities in the region, which have put their money where their mouth is to support the airport. They are also actively out there with business and commercial interests raising funding to ensure that this runway extension is delivered.

Having said that, we still need support from the Minister and his Department. He is right in saying that this is not just about the balance sheet. This concerns the knock-on economic benefits that access brings to a region. I have mentioned some of the jewels in the crown in the Waterford area. They are to be found throughout the south east. Ireland's Ancient East is a programme that is being run by the Minister and his Department. Waterford city and county, as well as the region, will play a major role in emulating, in a different way, the economic benefit the Wild Atlantic Way has brought to the west. We need to do the same in the east and south east and Waterford Airport is a critical component in that effort.

We look forward to working with the Minister to try to advance what are not just local interests but regional and national interests also for the benefit of the economic activity of our regions. As my colleague has said and as many colleagues in this House will continue to say, we need to develop critical infrastructure in our regions if we are going to lock their inherent potential.

Denis O'Donovan (Fianna Fail)
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Does the Minister wish to add anything?

Shane Ross (Dublin Rathdown, Independent)
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I assure Senator Coffey that I am sympathetic to everything he said. He must realise the restrictions under which we work. He will, as a previous Minister of State, be aware of those restrictions. These are not just the restrictions of the Exchequer but also, particularly, the rules about state aid under which we work as well. We have to abide by them. Deputy Halligan has asked me to visit the airport and I am willing to go and have a look. I will inform the Senator when I am going of course. I am very wiling to explore what avenues are open to us to ensure that those types of crises which Waterford Airport met in recent few weeks on foot of VLM's decision are not repeated.