Matt Shanahan Questions State Aid in €126m Aviation Package
Matt Shanahan asked the Taoiseach whether the recently announced €126 million aviation package, including €40 million for Cork Airport, would count as state aid. He contrasted that funding with the withdrawal of €350,000 in annual essential safety funding for Waterford Airport and asked whether the treatment was lawful and fair.
State aid question
Matt Shanahan sought explicit assurance that the €126 million aviation package would not count as unlawful state aid. He directly asked whether the allocation of €40 million to Cork Airport could be treated as state aid and whether that status had been considered.
Cork Airport funding and runway works
The speech notes that €40 million has been allocated to Cork Airport and that €40 million was recently spent on runway works described in the debate as the "fastest capital project in the state." Shanahan flagged that the runway project was green-lit soon after the Taoiseach took office and was completed by closing the airport and finishing the work in three months.
Waterford Airport funding cut
Shanahan highlighted that Waterford Airport has for years requested modest supports which were denied on the basis of EU state aid rules. He pointed out that the government is withdrawing an annual essential safety payment of €350,000 to Waterford, and he contrasted the fortunes of Waterford and Cork in making his point.
Taoiseach's response and broader airport support
The Taoiseach replied that the funding is not unlawful and is within the parameters of state aid. He argued that state airports are important to national connectivity, noted different governance arrangements for airports including Shannon, and said regional airports have received supports. He also commented that issues at Waterford predated the current government and that previous governments had provided supports, and he defended the rapid completion of Cork's runway as a management decision to close the airport and finish works in three months.
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I wonder can you put all our minds at rest that the recently announced 126 million aviation package of which 40 million I gather is allocated to Cork Airport will not count as state aid 40 million was recently spent on runway works in Cork Airport and what was described as the fastest capital project in the state having been green lighted soon after you became Taoiseach I raise the concern Taoiseach because for years Waterford Airport has requested modest supports from government which have been denied due supposedly to EU state aid rules your government government is presently withdrawing annual essential safety funding of 350,000 euro to Waterford Airport even as you announced this 126 million package it is hard not to contrast the fortunes of these two airports unlawful state aid is the question Taoiseach no it's not unlawful it's it's it's within the parameters of state aid but I would make the point generally that the state airports and they are state airports are important to the country's are important to the country's connectivity they're not just specific to one local area the Dublin airport and Corkip are part of the DEA and Shannon has its own governance structures but Shannon has a reach to the entire west NOC has been supported as well and there has been other supports and for the regional airports there's there I know there's been issues with water for quite a long time definitely to be fair I know that that predated this government and has a number of issues relating to it and it's called and previous governments did provide supports to Waterford and I think I think I just don't think it's fair to sort of just juxtapose one against the other the reason to the fastest runway project was simply to management there took a decision rather than spend years and try and do it while business was open they decided to close they decided to close the airport and get it done in three months and that worked and it's worth other people to watch that in terms of getting projects done quickly Thank you
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