Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 639: To ask the Minister for Transport, Tourism and Sport his plans to carry out a cost benefit analysis comparing the cost of providing €1.3m operation expenditure funding to Galway Airport in 2012 with the loss of revenue to the Exchequer in the form of taxation arising from the loss of direct employment at Galway Airport and the general economic loss to the region due to the closure of the Airport if OPEX funding is not provided; and if he will make a statement on the matter. [18361/11]

Leo Varadkar (Dublin West, Fine Gael)
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I fully recognise the value of Galway Airport in terms of the numbers employed directly and indirectly at the Airport and the role it has played in the economic development of the region. However, I do not accept the argument that compares the cost of Exchequer support to the airport with the loss of revenue to the Exchequer in the form of taxation arising from the loss of direct employment at Galway Airport, etc. were it to close. There are other factors at play here, particularly having regard to the overlapping catchment areas of the airports on the western seaboard.

A Value for Money (VFM) Review on Exchequer Support for the Regional Airports Programme has already been completed and was published by the previous Government last January. Its purpose was to evaluate past Exchequer expenditure against the Regional Airports Programme objectives and to examine the scope for achieving those objectives more efficiently and effectively in the future. The Review assessed all the regional airports throughout the country. It recommended that funding for the PSO air services between Dublin and the regional airports at Sligo, Ireland West (Knock), Galway, Kerry and Derry be discontinued when current contracts end in July 2011 and that operational and capital expenditure funding be discontinued for Sligo and Galway airports. In the case of Galway Airport, this means that much of the potential air travel would divert to Shannon and Ireland West international airports instead. Others would travel by road or rail instead.

These recommendations took into account changes in EU legislation, airport performances, the substantial investment in surface transport, overlapping catchment areas, the requirement to make best use of scarce Exchequer resources, and the implications for the regional tourism and business sectors.

In the circumstances, I have no plans to have further cost benefit assessments carried out on Galway Airport or any of the other regional airports. Moreover, the recent decision taken by this Government on funding for the regional airports is broadly in line with the Review's recommendations.

In that regard, I have secured Government approval for additional funding to be made available to all six regional airports in 2011, including Galway and Sligo, reversing the cut in funding made by the last Government. However, I will not be able to provide operational or capital funding to Galway or Sligo airports from 2012 onwards.

This decision is necessary to make best use of scarce Exchequer resources and to ensure the efficient use of taxpayers' money. The Government is aware of the implications for both Galway and Sligo Airports in making this decision. Clearly, in the current economic difficulties, it is not business as usual and unpopular decisions must be made. I believe that in continuing to support the other four regional airports beyond 2011, we will ensure that Ireland has a sufficient network of regional airports, while taking into account significant improvement in the road network, short journey times by road and rail and the reduction in passengers flying domestically.

I would encourage Galway and Sligo Airports, as privately owned entities, to use the opportunity provided by the additional funding in 2011 to engage with various parties, including business interests, investors and local authorities, to secure their ongoing viability in some form. My Department will work with those airports over the coming months to ensure the close out of Exchequer support in an orderly way.