Written answers

Tuesday, 20 October 2020

Department of Transport, Tourism and Sport

Airport Policy

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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170. To ask the Minister for Transport, Tourism and Sport the additional funding allocated to Shannon and Cork airports; the conditions of the funding; the timeline of payment of same; and if he will make a statement on the matter. [31273/20]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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In recognition of the devastating effects of Covid-19, Budget 2021 has provided capital funding of €10m for Shannon and Cork airports in 2021. This is the first time that these airports will be eligible for State funding under an Exchequer Funding Scheme.

Historically, funding has only been provided to Ireland's smallest airports - those with less than 1 million passengers - under the Government's Regional Airport Programme.

Next year, in addition to the Regional Airports Programme, a new Scheme will be established for airports that handle between 1 and 3 million annual passengers in line with State Aid rules. Only Cork and Shannon airports will meet the eligibility criteria for this particular Scheme in 2021.

The Programme will be designed along the same lines as the capital grant schemes under the Regional Airports Programme with funding primarily targeted at safety and security related projects. If projects are approved in line with the associated eligibility criteria, payments will be made during the course of the year once the appropriate evidence of expenditure has been received by the Department.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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171. To ask the Minister for Transport, Tourism and Sport if he will provide details of the regional airport scheme; the areas to which the extra funding will be allocated; if his attention has been drawn to the pressure that regional airports are under as a result of Covid-19; and if operational expenses will be given greater supports in 2020 and 2021. [31274/20]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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As a result of Covid-19, the challenge facing the aviation industry is unprecedented. I am acutely aware of the exposure to airports as a result of the dramatic downturn in activity and I can assure the Deputy that officials in my Department have been in regular contact with the airports throughout this crisis.

This year, funding for Ireland's smallest regional airports has been maintained through the Government's Regional Airports Programme. To date, Donegal, Kerry and Ireland West (Knock) have been allocated capital supports of almost €2.5 million. In recent weeks, the Department has also issued invitations to these airports to apply for funding under an operational grant scheme with an available budget in 2020 of close to €3.5 million. Donegal and Kerry airports are also benefitting from annual support of more than €7 million for the PSO air services between these airports and Dublin.

Regional connectivity and development remains a critical priority of this Government and that is evident from the level of support being provided in 2021 – more than €31 million.

Despite the unprecedented demands on the Exchequer, I have secured the continuation of vital Exchequer supports for the Regional Airports Programme next year. €21.3 million is being provided in 2021 to support capital and operational aid in the areas of safety and security as well as ongoing funding support for the PSO air services. This funding will be administered through a new Regional Airports Programme for the period 2021 to 2025.

By virtue of their size, Shannon and Cork airports have never been eligible for supports under the Regional Airports Programme. However, for the first time, in recognition of the devastating effects of Covid-19, Budget 2021 has also secured the provision of a capital funding budget of €10 million for Shannon and Cork. This will contribute to the costs of safety and security related projects at these airports.

In addition to these targeted supports, airports will continue to be eligible for the economy wide support measures that are open to all sectors, notably wage supports and tax deferrals. In relation to any additional support mechanisms for the wider aviation sector, it is intended that these will be developed within the context of the forthcoming National Economic Plan.

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