Matt Shanahan (Waterford, Independent)
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49. To ask the Minister for Transport, Tourism and Sport the key policy achievements realised and new initiatives taken by his Department to date and during 2024 in relation to regional aviation; and if he will make a statement on the matter. [24240/24]

Jack Chambers (Dublin West, Fianna Fail)
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Ireland’s National Aviation Policy (“NAP”) published in August 2015, established a policy framework for the development of the aviation sector. With regard to regional airports, the NAP was designed to create an environment that would encourage the sector to enhance Ireland's connectivity and to maximise the contribution of aviation to Ireland's sustainable economic growth and development.

In line with the action points under the NAP, regional airports are supported under a Regional Airports Programme. The current Programme for the period 2021-2025 was published by my Department in 2021. Since 2021, Exchequer funding totalling over €78 million has been allocated under this Programme.

This Programme continues to support Ireland’s smallest airports that provide connectivity and handle fewer than one million passengers per annum. In addition to targeting funding at safety and security projects and activities, the scope of this new Programme was expanded to support projects with a sustainability focus encouraging airports to reduce emissions and build climate resilience.

The NAP also supports Public Service Obligation (PSO) air services. A PSO air service between Donegal and Dublin is supported under the Regional Airports Programme providing vital connectivity to the people and businesses in the North-West region. Services facilitate same day return trips from Donegal, and further international connectivity from Dublin Airport. The current contract, awarded by my Department to Emerald Airlines, came into effect on 26 February 2022 and will run for a three-year period, with a provision to extend for a further one year. As well as supporting Government’s commitment to balanced regional development, these services have supported growth of the economy and tourism in the region.

By virtue of their size and passenger numbers, neither Cork nor Shannon regional State airports had been eligible for funding under the Regional Airports Programme. However, in light of the impacts of COVID-19 and taking account of the recommendations of the Taskforce for Aviation Recovery, my Department allocated over €28 million to Cork and Shannon airports under a one-year COVID-19 Regional State Airports Programme in 2021. Due to suppressed passenger numbers in 2020 and 2021, both airports later became eligible for supports under the Regional Airports Programme in 2022, with Shannon Airport remaining eligible in 2023 also. An additional €6.8 million in emergency supports were also approved by Government and provided to Shannon Airport to complete a Hold Baggage Screening project, commenced during the pandemic, and to repair the Shannon embankments following storm damage during winter 2013/2014.

In addition, in recognition of the very difficult circumstances faced by all Irish airports during COVID-19, a further unprecedented €19 million was allocated to regional airports in 2021 under an EU State Aid approved COVID Supplementary Support Scheme for Irish Airports. This funding compensated the smaller regional airports at Donegal, Kerry and Ireland West for the damage caused to them by COVID-19. The funding allocated to our regional State airports at Shannon and Cork provided them with the flexibility to roll out route incentives and charge rebates, in consultation with airlines.

I am pleased to say that Ireland has established good connectivity via our regional airports with the UK, Europe and America. The targeted Exchequer funding to this sector has supported this connectivity, with overall passenger traffic across Irish regional airports in 2023 9% above 2019 levels (the last comparable period prior to COVID-19). I am also encouraged to see the strong growth experienced to date this year, with passenger traffic to end April 10% higher when compared to the same period last year.

That said, to consider how Exchequer funding to this sector is delivering on its objectives, primarily in the context of how international connectivity and services to and from the regions can be maintained and enhanced, a mid-term review of the Regional Airports Programme was undertaken in 2023. My Department carried out a public consultation last year to inform this review, which was finalised in late December.

While the primary focus of this review is on the performance of the Programme to date, recommendations and proposed actions on foot of this review may contribute to the development of policy on future appropriate and cost-effective support measures for regional airports in Ireland, including the development of any future Programme.

I am currently engaging with colleagues across Government in reaching a conclusion on this review.

Matt Shanahan (Waterford, Independent)
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50. To ask the Minister for Transport, Tourism and Sport if he will provide an outline of the spending in aviation in his Department to date and during 2024; to provide an account of any overspend or underspend noted by his Department in this Government programme; and if he will make a statement on the matter. [24241/24]

Jack Chambers (Dublin West, Fianna Fail)
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I thank the Deputy for his question and for the subsequent clarification provided. Over the period 2020-2023, Exchequer supports totalling almost €222 million were provided to Irish airports under the Aviation Programme within my Department's VOTE. A further €21 million was provided to support Public Service Obligation (PSO) air services.

As requested, this funding is set out below by spending head under Table 1 – Funding to Irish Airports 2020-2023 and Table 2 – Funding on PSO Air Services 2020-2023.

Table 1- Funding to Irish Airports 2020-2023

Table 2 – Funding on PSO Air Services 2020-2023

Regarding funding to regional airports in 2024, to date, capital funding allocations of €5.6 million have been announced for Donegal, Kerry and Ireland West airports. In line with previous years, additional funding allocations may be announced from within the 2024 budget before years end.

In relation to your question on overspends and underspends, firstly I wish to advise the Deputy that in relation to operational funding to regional airports, spending is generally in line with budgetary resources. Following an assessment of applications from regional airports each year, funding is allocated in line with forecast expenditure. Depending on budgetary resources in any given year, up to 100% of eligible non-economic payroll and operational costs at airports in the areas of Air Traffic control (ATC), safety and security are supported. Funding is then reconciled against airports’ actual operational costs as set out in audited financial statements as part of the following years application assessment. The following years allocations are then adjusted to account for any overcompensation, if applicable.

Regarding capital investment in regional airports, funding allocations are determined following an assessment of capital grant proposals put forward by eligible airports in Q1 each year. Allocations are based on project cost estimates put forward at the time of application. Grant aid is then drawn down by airports, on a recoupment basis, following the completion of projects. In some cases, small savings are realised resulting in savings under the Aviation Programme. However, in relation to project overspends, in accordance with the conditions set out under Grant Agreement with airports, it is a requirement that any project overrun is met from the airport’s own resources and not funded by the Exchequer.

At a higher level relating to overall Aviation Programme spend within my Department’s Vote, capital savings may be realised in any given year. In some cases, project delays, due to supply change issues for example, may arise resulting in projects not completing in the funding year. In other instances, the overall available budget under the Aviation Programme in any given year may exceed the cost of all eligible projects approved for funding. Where this occurs, sanction may be sought from the Department of Public Enterprise NDP Delivery and Reform, and approved by Government, for the deferred surrender of this Aviation Programme budget into the following year, thereby reducing the demand on the Exchequer in the following year.

As is the case with all Voted expenditure, the detail of this is published in the Appropriation Account for each funding year.