Noel Grealish (Galway West, Progressive Democrats)
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Question 335: To ask the Minister for Transport the amount of taxpayers' money that has been invested in Galway airport since its foundation; the value for money audits and budgetary checks that are currently in place; the Government's position on the proposed management buyout of the airport; if this goes ahead, if the taxpayers will be able to recoup the money invested; and if he will make a statement on the matter. [15499/04]

Séamus Brennan (Dublin South, Fianna Fail)
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Galway airport is the trading name of Corrib Airport Limited, a subsidiary of Galway Chamber of Commerce and Industry which holds 90% of the issued shares in the airport company. A proposal by the management team at the airport for a management buy-out of the chamber of commerce's shareholding in the company was recently declined by the chamber. It is understood that the matter is now closed. Regarding any possible future change of ownership of Galway airport, interested parties would be aware that, under the terms of an infrastructure grant agreement between the Minister and the airport company in September 2000, the prior written consent of the Minister would be required for any major change in shareholding or control of the airport company.

The primary purpose of the financial support made available to Galway airport, and to the other five regional airports in the State, is to facilitate continued viable and safe air access for the regions concerned, and to allow those airports to contribute to the achievement of balanced regional development. According to records held by my Department, total grant assistance of approximately €7 million has been made to Galway airport since its foundation in the mid 1980s. This sum is comprised of capital grants totalling €5.6 million, including €0.750 million in EU funding in the early 1990s, plus €1.4 million in non-capital grant assistance towards expenditure incurred on marketing, safety and security measures.

The Department commissioned a value for money audit of an ongoing runway development project at the airport in 2002, in response to escalating cost projections associated with the project at the time. A revised project specification, designed to facilitate full completion of necessary runway safety improvements within the original grant allocation is currently being considered by officials in my Department in consultation with the Irish Aviation Authority. Internal control systems operated in my Department are designed to ensure that grant assistance to all regional airports is paid in accordance with Government accounting procedures.