Michael Ring (Mayo, Fine Gael)
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Question 81: To ask the Minister for Transport if a scheme (details supplied) helps subvent recipients costs of operations, which include marketing; and his views on whether this encourages recipients to be profit making. [44392/08]

Noel Dempsey (Meath West, Fianna Fail)
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The Core Airport Management Operational Expenditure Subvention Scheme was drawn up in response to EU guidelines in relation to the provision of public funding for airports, including small airports. It represents a different approach from the former Marketing, Safety and Security grant scheme which it replaced.

Under the scheme, financial support can only be made available on an annual basis towards expenditure incurred in providing core airport services (air traffic control, security/safety, emergency services, etc) on foot of a Public Service Obligation (PSO) contract between the Minister and each airport. Airports must show that they are endeavouring to contain their costs. They must also maximise aeronautical revenues and funds generated by non-core activities (e.g. shops, catering, car parks).

It is my policy to encourage the regional airports to run their businesses on a commercial basis, without relying on Exchequer subvention. This is in line with the view underlying the mandatory EU guidelines mentioned above that, as a general rule, airports should be self-financing and that public money should be made available to them only in particular circumstances and subject to certain conditions.