Timmy Dooley (Fianna Fail)
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I thank the Cathaoirleach. As the Minister of State knows well, the Covid-19 pandemic has decimated the aviation industry and tourism sector. It is having a significant negative economic impact on the businesses and employees in the region. In County Clare alone, hotels, guesthouses and tourism attractions are such an important part of the economic life of our county and have been decimated as a result of what Covid-19 has done. We need to see now and to ensure, as we look to the other side of Covid-19 whenever that might be, that vital infrastructure that has been built up over many decades is there and is protected. The real worry now is that as economic recovery starts to take hold it will be concentrated through the main airport in the country, namely, Dublin Airport. That would be devastating to the future life of regional development and would have a dramatic impact on the capacity of County Clare and the entire west of Ireland to achieve economic recovery.

As the Minister of State is aware of the threat, airlines will not be making money on any of these routes for quite a protracted period of time. They are threatening to move aircraft to other locations in the world where rules around travel are less restrictive. We, as a functioning Government, cannot allow that to happen. We are going to have to put in place State supports to protect the key routes and to provide funding to these private airlines, as much as we would not want to do that in a normal time. It will be necessary, however, because these routes are so vital to the economic well-being of the region. There is a public service obligation model which has been used in the past to support air access to routes where they are not profitable for a particular period of time but where their vital importance is recognised for the economic activities in the region. I am appealing to the Minister of State as a representative of the Government to give every consideration to the demands and needs of these regions to provide the appropriate funding to support airlines and to protect routes, so that these areas can recover when we get to the other side of the pandemic.

Jerry Buttimer (Fine Gael)
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I thank the Cathaoirleach and the Minister of State, Deputy Naughton, for being here and I congratulate her on her appointment.

This is an important debate about, as the task force said, the protecting of public health but also the rebuilding of consumer confidence and regional and international connectivity. Cork and all of our airports operate in an open economy and we are an island nation. Our aviation sector, therefore, is critical. We need clarity on the task force recovery plan, on reform of the red and green list, and we also need to have a comprehensive remodelling of our testing. In welcoming that the Government has signed up to the European protocol on testing, it is now important in doing so that we recognise the green, orange and red system. In particular, on the red list, it is important that the option of testing in lieu of quarantine is put in place. It is about protecting our public health but it is also about rebuilding consumer confidence.

If one takes Cork Airport, for example, it has seen its passenger numbers plummet by 90% and faces a loss of €20 million for the year ahead. We need the reform that Senator Dooley has referred to by giving incentives for route development and retention. It must also be remembered that Cork Airport is the only airport that has not got funding under regional airport capital funding and I ask that that be given serious consideration.

I know that my time is short and that the Minister of State is going to reply but it is important that this debate is the beginning and a catalyst for the recovery of our aviation sector. This is done in the widest possible manner to support Government but to recognise also that a stimulus package to include Cork Airport is required. Reform of our testing is also required and if we are serious about signing up to the European protocol then green, red and amber means what it means, but our green and red lists must also be looked at in their entirety. I want a debate around what a green and red list means and around connectivity. Gabhaim buíochas.

Eugene Murphy (Fianna Fail)
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I call on the Minister of State to speak. She is very welcome. I wish her well in her new role as a good west of Ireland lady and a friend of mine.

Hildegarde Naughton (Galway West, Fine Gael)
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I thank the Acting Chairman and both Senators for raising this very important issue. I appreciate the enormous challenges facing Irish aviation at the moment. The industry has already weathered a prolonged period of significantly reduced demand which has affected the many people employed in the aviation industry throughout the country.Ireland's economic well-being is closely linked to our global connectivity, in which aviation plays a key role. I can assure all stakeholders that the importance of the aviation industry in terms of its contribution to GDP, FDI and job creation is well understood, and that the Government will do all it can to support it through the very difficult period ahead.

The aviation recovery task force, which delivered its final report in July, made a number of useful recommendations to get the aviation sector back on its feet again. A number of the recommendations have already been implemented by the Government and others which are aimed at stimulating growth in air travel, are being examined and developed into proposals that will be deployed when the time is right. Among the actions already taken by the Government are measures to assist the sector financially. These include the extension of the wage subsidy scheme, tax claw-back measures, and the offer of liquidity support which is available to the aviation sector through the Government's €2 billion ISIF Pandemic Stabilisation and Recovery Fund. I am acutely aware of the challenges that our State airports and indeed all Irish airports are currently facing and will continue to face over the coming months as the country adjusts to the new reality of living alongside Covid-19. The Minister, Deputy Ryan, and I have met with the management of the DAA, the Shannon Group and Cork Airport and have been updated on the challenges facing Dublin, Shannon and Cork airports. I have seen at first hand the impact that Covid 19 has had on Cork Airport's operations. In addition, I have also met with our regional airports to discuss the challenges they face.

In addition to the horizontal Exchequer supports provided by the Government which I have mentioned and which the airports are availing of, the Government's commitment to our State airports was most recently demonstrated by a decision we made in recent months to provide an emergency grant of €6.1 million to Shannon Airport to complete its hold baggage screening project, a safety and security requirement under EU regulations. The provision of the funding ensured that Shannon Airport was in a position to resume passenger flights on 1 July. Officials in my Department are exploring further targeted support measures which will be considered by the Government as part of further plans to aid broader economic recovery. These supports would be targeted at maintaining connectivity at Cork, Shannon and Dublin airports.

The key to a meaningful recovery in the aviation sector, however, is to enable safe travel where the risk of contracting coronavirus from travel is low, where that risk can be mitigated through additional measures such as testing, and where travellers have some level of certainty on the public health measures in place during their travel journey. The European Commission proposal for a co-ordinated approach to the restriction of free movement offers a way forward in this regard. The Government took the decision to broadly align with this EU approach to international travel, which is expected to be finalized at the General Affairs Council on 13 October next. With regard to countries other than those on the green list, the proposed new EU approach would involve graduated requirements for testing of passengers. My Department is consulting with the Department of Health and the HSE as well as maritime and aviation stakeholders, to consider the possibility of introducing testing for Covid-19 in the context of international travel, as an alternative to the current general advice against non-essential travel. Any testing regime would need to be consistent with public health requirements and cognisant of the resources and capacity for testing available in our health sector. It is our hope that once the European common approach, including a supporting testing regime, is agreed, the path ahead for aviation and travel will be clearer and we will then be in a better position in respect of the visibility on what still might be necessary to support the aviation sector in the medium term. Officials in my Department are exploring further targeted support measures which will be considered by the Government as part of further plans to aid broader economic recovery.

Eugene Murphy (Fianna Fail)
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The gentlemen have one minute between them for a supplementary question. I am not going to allow people ramble on.

Timmy Dooley (Fianna Fail)
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I thank the Minister of State for her confirmation that her Department is looking at those targeted reports for services in those regions. Shannon's connectivity to London Heathrow and the east coast of the United States, namely, Boston and New York, are the key strategic routes that need Government intervention and targeted support. I hope that the Minister of State will be able to provide a level of security and certainty to the airport and airlines like Aer Lingus to ensure they are in a position to retain aircraft in those locations and that when we get to the other side of the pandemic, we are in a position to resume services.

Jerry Buttimer (Fine Gael)
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I am being parochial, but it is important that Cork Airport would be added to the existing regional airports OPEX scheme because it has been excluded up to now. I agree with Senator Dooley that connectivity is critical. If one looks at the potential of Ryanair in terms of Cork Airport, 80% of the flights are gone. That is 100 jobs between pilots and cabin crew. This is an ongoing issue on which we need to have continual debates. This is about safe connectivity and about us being innovative and bold as we always have been in aviation. Whether it is aeroplane leasing, flying the Atlantic or Ryanair with Michael O'Leary, we have been innovative.

Eugene Murphy (Fianna Fail)
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I thank the Senator.

Jerry Buttimer (Fine Gael)
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This is too important to have it shoehorned.

Eugene Murphy (Fianna Fail)
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I know it is, but we have to-----

Jerry Buttimer (Fine Gael)
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I have asked for a debate-----

Eugene Murphy (Fianna Fail)
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Okay.

Jerry Buttimer (Fine Gael)
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-----on transport. We need a bigger and wider debate.

Eugene Murphy (Fianna Fail)
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I accept that and we will have time. I am sorry to cut across the Senator.

Hildegarde Naughton (Galway West, Fine Gael)
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Global civil aviation is facing its most challenging crisis ever and a range of forecasts across the airline sector do not anticipate global capacity returning to 2019 levels before 2023 or 2024. When aviation might resume in a meaningful way is clearly linked to the evolution of the coronavirus, ongoing travel restrictions and advisories, as well as the more general economic outlook. In Ireland current estimates predict airport passenger numbers this year at just 25% of 2019 levels. The scale of the decline is having a severe impact on airlines, airports and associated businesses in the aviation sector. To assist businesses to protect employment, the Government acted early in the Covid crisis to introduce wage supports and put in place a suite of measures to assist businesses, which I mentioned earlier.

I have committed to undertake an examination of the future viability and sustainability of Shannon Group. I will consider financial supports and any other measures that may be necessary and appropriate as part of the review of Shannon Group. I intend to bring recommendations to Government shortly.

Senators can be assured of our commitment to ensure that we open up aviation. As an island nation, it is critical not only to our economy, but also socially, and for tourism, family, friends and all our diaspora. It is an issue of fundamental importance to us.

Eugene Murphy (Fianna Fail)
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I gave a bit of leeway there because two Senators were involved. I ask for everybody's co-operation on the remaining matters.