Michael D Higgins (Galway West, Labour)
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Question 58: To ask the Minister for Transport if he has abandoned plans to develop a public service obligation for the Shannon-Heathrow route; if he has had further contacts with his UK and EU counterparts on the development of the Shannon-Heathrow PSO; his views on establishing a PSO on the Waterford-Dublin route; and if he will make a statement on the matter. [9628/08]

Noel Dempsey (Meath West, Fianna Fail)
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Under the terms of Council Regulation (EEC) No. 2408/92 of 23 July 1992, a Member State may, in limited circumstances, impose a Public Service Obligation in respect of an air service and may subvent that service if no airline is prepared to operate it on a commercial basis.

My Department had discussions recently with the EU Commission about air connectivity from the West of Ireland and in particular about the possible imposition of a Public Service Obligation (PSO) on the Shannon-Heathrow route.

The Commission's position, as clarified following those discussions, is that the EU Regulation governing PSOs is an exception to the general rule of free provision of air services and that any such exception should be considered as restrictively as possible and applied only as far as necessary. In order for a route to be eligible for a PSO under the Regulation, not only must it be vital for the economic development of the region concerned but the existing services must be inadequate. In assessing whether services are adequate, account has to be taken of all existing air transport services, direct and indirect.

In relation to the Shannon to London route, the Commission has noted that there are already regular direct air services between Shannon and the London airports of Gatwick, Stansted and Luton. Allowing for these connections, the Commission has indicated that it would be difficult to justify a PSO on the Shannon to London route. Accordingly, I do not propose to pursue the question of a Shannon-Heathrow PSO any further.

When the question of introducing a PSO service on the Waterford-Dublin route was raised in 1993, I understand that the E.U. Commission refused to sanction the proposal because the route is relatively short and because Waterford was already adequately served by other transport modes. In the interim, the relevant surface transport links have been upgraded and continue to be improved. In the circumstances, I have no proposals to revive the question of including the airport in the Irish PSO air service programme.