Joe McHugh (Donegal North East, Fine Gael)
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Question 863: To ask the Minister for Transport his plans for regional airports in the context of public service obligation, specifically Carrickfinn, County Donegal, Sligo and Derry airports in this context; and if he will make a statement on the matter. [32464/10]

Noel Dempsey (Meath West, Fianna Fail)
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The PSO air services linking Derry, Donegal, Sligo, Knock, Galway and Kerry with Dublin are subsidised under the Department's Essential Air Services Programme. The cost of the current contracts is €44.8 million over the three year contract period up to July 2011.

The Special Group on Public Service Numbers and Expenditure Programmes (An Bórd Snip) recommended that the Public Service Obligations for air services should be discontinued after the ending of the present contracts.

In addition, under updated EU legislation governing these services, more stringent conditions will apply to future PSO arrangements, having regard for example, to the availability of other transport connections and especially rail services with a travelling time of three hours or less.

I have considered the Value for Money Review of Exchequer Expenditure on the regional airports programme which was recently completed. The review was carried out to assist me in evaluating the appropriate scale of a regional airports programme in future years bearing in mind aviation policy objectives, the updated EU legislation, the improved surface links under the NDP and Transport 21 and the need to address the difficulties with our public finances.

The Review is being considered by Government and it is intended that it will be published shortly.