Written answers

Tuesday, 29 September 2020

Department of Transport, Tourism and Sport

Aviation Policy

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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226. To ask the Minister for Transport, Tourism and Sport the actions taken to implement the aviation recovery task force report; the actions from this document he plans to implement; and the timeframe in which they will be implemented. [26578/20]

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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227. To ask the Minister for Transport, Tourism and Sport his plans to progress recommendation 6of the aviation recovery task force report in which the State should directly provide the airports with a common fixed sum per passenger which will be used by the airports with the aim of protecting the viability of the airports and protect air connectivity nationally. [26579/20]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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236. To ask the Minister for Transport, Tourism and Sport if his attention has been drawn to the aviation task force recommendations; and if the recommendations will be implemented in their entirety. [26814/20]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 226, 227 and 236 together.

The Aviation Recovery Taskforce submitted its Report in early July in which it made a series of recommendations around how Government could help stimulate a return to growth in the industry. These recommendations included a loosening of international travel restrictions, the finalisation of safe air travel protocols for airports and airlines and the provision of Exchequer funding for airlines and airports.

Where it has been able to, the Government has responded positively to the Report's recommendations. The wage subsidy scheme - which benefits aviation companies - has been extended out to April next year, a safe air travel protocol document has been published and liquidity supports are available through the ISIF Pandemic Stability Fund. Moreover, the Government is working hard at European level to secure a common EU-wide approach to air travel that offers the prospect of easing some travel restrictions in a safe way.

Whilst we clearly have not yet arrived at a point where it makes sense for the Government to try to stimulate growth in air travel, as envisaged by the Taskforce Report, consideration is being given to what more needs to be done to protect key connectivity - including outside of Dublin - without undermining the central public health objective of reducing the spread of Covid-19. It should be noted that additional emergency funding has already been allocated to Shannon Airport, and the Regional Airports Programme is continuing to provide important financial supports for our regional airports.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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228. To ask the Minister for Transport, Tourism and Sport the direct supports he plans to put in place for regional and international airports outside Dublin; if he has considered a passenger subsidy, either indirectly by way of airport charges or directly; and the proposals that have been considered. [26580/20]

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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229. To ask the Minister for Transport, Tourism and Sport his plans to progress recommendation 6 of the aviation recovery task force report regarding funding for essential capital projects in line with European Commission rules on state supports to airports in such a way as to ensure airports with fewer than 3 million passengers are deemed eligible for capital expenditure support. [26581/20]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 228 and 229 together.

All airports, including those outside of Dublin, are already benefitting from an extensive range of Government measures during this difficult time. These include wage subsidy schemes, grants, low-cost loans, waiver of commercial rates and deferred tax liabilities.

Up to the end of August, the regional airports of Cork, Donegal, Ireland West, Kerry and Shannon Group (including Shannon Airport) had collectively received, or were in the process of applying for horizontal supports to a value of approx €6.5 million.

The smaller of these airports, those that typically handle less than 1 million passengers, are also receiving €6m in Exchequer grants this year from Current and Capital Schemes under the existing Regional Airports Programme.

In addition to the grant aid, regional connectivity continues to be subsidised through Government funded PSO air services between Dublin and the airports of Donegal and Kerry. Over €7m is being provided to support this service in 2020.

A new Regional Airports Programme for a five year period starting in 2021 is also being finalised. This will help eligible airports remain viable as they begin to plan for recovery and transition away from the devastation of Covid.

Prior to Covid-19, the State-owned airports of Shannon and Cork had more than 1 million passengers. As a result, and because of their commercial status, these airports were never part of the Regional Airports Programme.

While State aid rules do not preclude these airports from receiving capital funding, it has been a matter of national policy to target limited supports at our smallest airports – those that would ordinarily struggle, because of their size, to finance projects/activities that would ensure ongoing compliance with safety and security obligations.

Notwithstanding this, as a result of Covid, an emergency Exchequer contribution of €6.1million was approved for a Hold Baggage Screening project at Shannon Airport in June this year.

In relation to any future support mechanisms for the aviation sector, my Department will continue to work closely with aviation stakeholders and continue to review options in the context of the Government’s plans for international travel, having regard to the recommendations of the Aviation Taskforce.

I cannot give specific commitments at this time because any further supports that may be considered will be part of the ongoing Budget deliberations, and there are many competing demands on the Exchequer. However, I can assure the Deputy that the importance of these airports to the regions is well understood by Government.

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