Written answers

Thursday, 24 November 2005

Department of Transport

Airport Development Projects

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 56: To ask the Minister for Transport if another round of funding for regional airports or any additional funding to such airports is envisaged by his Department; and if he will make a statement on the matter. [36003/05]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 58: To ask the Minister for Transport the reason for the sharp drop in funding for regional airports in the 2006 Estimates; and the way in which this will impact on services. [35903/05]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 56 and 58 together.

The reduction in current expenditure for regional airports in the 2006 Estimates reflects the reduced level of subvention required under the new PSO air service contracts, which came into force in July 2005.

Under the new PSO regime, annual subvention required for all six PSO routes is reduced from approximately €20 million to approximately €15 million. The reduction in subvention was achieved taking account of an expenditure review of the escalating costs of the PSO regime and following the development of revised programme specifications and a competitive procurement process.

There should be no negative impact on PSO services under the new programme. The service timetables and frequency of flights remain largely unchanged from arrangements in previous years. New standards of punctuality and operational performance have been introduced which should contribute to a general improvement in service provision.

The 2006 Estimates also make provision for operational and capital grant assistance for the regional airports. Some €2.24 million will be available towards operational expenditure and €4 million will be available to assist with safety and security related infrastructure under the NDP.

The approved NDP projects, which I announced earlier this year, are being undertaken in the 2005-07 period and total funding of €12 million will be available for this purpose.

Any additional funding for regional airports in subsequent years under Transport 21 will be considered in the context of Department of Finance capital appraisal guidelines and EU guidelines on financing of airports and start-up aid to airlines departing from regional airports.

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