Written answers

Wednesday, 31 March 2021

Department of Transport, Tourism and Sport

Covid-19 Pandemic Supports

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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252. To ask the Minister for Transport, Tourism and Sport the additional supports his Department is considering to assist the aviation industry through Covid-19 restrictions and beyond; and if he will make a statement on the matter. [16318/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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The Government has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, waiving of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme, with some of these now extended to 30 June 2021. Irish airlines and airports have availed of over €200 million through these supports to date. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises.

In November 2020, in recognition of the very difficult circumstances facing the aviation sector, the Government agreed a revised funding package of €80 million specifically for Irish aviation in 2021. A part of this package, over €21 million, is being provided to our Regional Airports Programme (RAP). The new RAP, published on 4 February, gives funding certainty to those airports up to 2025. Those airports eligible for RAP support are Donegal, Kerry and Ireland West (Knock). Additionally, €32 million is being provided to Cork and Shannon Airports through a new one-year COVID-19 Regional State Airports Programme.

The European Commission has approved, under EU State aid rules, a €26 million Irish state aid scheme to compensate airport operators for the losses caused by COVID-19 and the travel restrictions imposed by Ireland to limit its spread. This scheme consists of three measures: a damage compensation measure; an aid measure to support the airport operators up to a maximum of €1.8 million per beneficiary; and an aid measure to support the uncovered fixed costs of these companies. The aid will take the form of direct grants and airports will be invited to apply for funding under this Scheme shortly.

This scheme will augment the supports already in place and help the industry to maintain connectivity and to make a recovery from the impacts of COVID-19. It cannot be excluded that further targeted supports may be required later in 2021, particularly in the event that restrictions on travel remain in place throughout the forthcoming summer season.

The Government is fully alert to the devastating impact of the global pandemic on international travel and values the critical role that aviation plays in the Irish economy. It is expected that it may be some time before it is possible to permit a large-scale return to air travel, but we remain committed to ensuring that the aviation sector can maintain the necessary core capability to retain strategic connectivity, and to quickly rebound when circumstances allow.

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