Martin Cullen (Waterford, Fianna Fail)
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The question refers to new EU guidelines on financing of airports and start up aid to airlines departing from regional airports. The aims of the proposed guidelines are to establish a firm legal framework for agreements between airports and airlines and to increase transparency and to prevent any discrimination in the agreements concluded by regional airports and airlines on start up aid.

The guidelines will affect the structure and assessment of funding for our regional airports by the Exchequer. There will be more onerous administrative obligations relating to establishing the publicly stated role of individual regional airports and the limiting of Exchequer compensation to an analysis of reasonable costs, relevant revenues and a reasonable profit for discharging that publicly stated role. The financial compensation must be based on a transparent accounting system. Proposals for Exchequer investment in general airport infrastructure would have to be in accordance with a clearly defined objective such as regional development or accessibility. These proposals will have to be proportional to the objective set and have satisfactory medium term prospects for use, in particular as regards the use of existing infrastructure.

In addition, the Department and the airports will have to guard against any infringement of rules for start up aid to airlines. Restrictive conditions will apply to start up aid to airlines for new routes.

My Department is now examining the proposed new framework required for the regional airport grant schemes in the light of the guidelines. In the light of the importance of regional airport services, my Department will consult with the State and regional airports authorities on the implications of the guidelines and the optimum approach to compliance.