David Cullinane (Waterford, Sinn Fein)
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In 2019, as an Oireachtas Member, I attended a meeting with the then Minister for transport, Shane Ross. The Minister of State, Deputy Butler, was at that meeting as well. Mr. Ross essentially at that point signed off on State investment for Waterford Airport. We were told at that meeting - and I had been of the view for some time - that the airport had reached a crossroads and either the funding would come and the runway extension happen to give it a fighting chance to survive and get new commercial airlines and activity into the airport or else it would fold. There was no other option. "We have to extend the runway and it's all or nothing" is what was presented to us.

At the meeting, there was a proposal of a three-way arrangement between three local authorities in the region that would provide State funding, commercial and private investment and support from the Department of Transport. We heard in the meeting and it was subsequently reported in the media that there was strong pushback from officials in the Departments of Transport and Public Expenditure and Reform. We know that well in Waterford from a range of projects where we had to fight tooth and nail to get State funding over the line and to present business cases time and again before a decision was made.

On the airport, we are still here and still waiting. It was 2019 when the commitment was given. I accept other parties and stakeholders are part of the arrangement but for some time the private sector funding has been there, the local authority funding has been there and business cases have been submitted. There was confusion about this earlier this year but in December of last year a business case or proposal was submitted by the board of the airport to the Minister for Transport, Deputy Eamon Ryan. My understanding is fresh information or an updated submission was given in April this year. Possibly since then, more information has been provided but there is still no decision.

I talk to the Minister for Transport when I get a chance, often on the corridors of Leinster House, and ask if there is any movement. It is our job as local politicians to move these issues on. The Minister of State, Deputy Butler, will agree that there is frustration in Waterford that no decision has been made. I cannot understand what is happening; nobody is telling us what is happening. There are different views and reasons given for the delay. Surely to God somebody should be able to make a decision to fund the airport or not. We cannot continue indefinitely with no decision on the future of the airport. It is one of the few airports in the State that does not receive substantial State funding because it is all conditional on this proposal going ahead.

It seems the biggest stumbling block is the Department of Transport, Minister for Transport and Government making a decision. When will the decision be made to grant funding for the airport? Has the Department met with the other stakeholders? If this was a three-way arrangement, surely the departmental officials and the Minister for Transport would meet local authorities providing some of the funding and with the private sector investment. It is important for the people of Waterford to fully understand what is happening. We are getting mixed messages and there is no certainty around when a decision can be made. It is reasonable to ask what is happening, who is meeting who and have the Minister and his officials met with the private investors putting money up and with the local authorities. More important, when will the application for funding be signed off on?

James Lawless (Kildare North, Fianna Fail)
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I thank the Deputy for his Topical Issue. As the new Minister of State at the Department of Transport since last Thursday, I am delighted to have the opportunity to address the House on this matter and engage on the Deputy's issue. The matter is as close to the Minister of State's, Deputy Butler's, heart as to the Deputy's and is of interest to the south-east region, public representatives and wider business and local communities.

Waterford Airport is owned by Waterford Regional Airport plc and, as well as general aviation services, operates a Coast Guard search and rescue base under a commercial contract with CHC Ireland. On a historical note of interest, the airport's potential is highlighted by the fact the first ever Ryanair commercial flight was from Waterford Airport to Gatwick 39 years ago next Tuesday - 8 July 1985. That has been a success story. Let us hope we can repeat the feat.

Waterford Airport was eligible for Exchequer funding under the latest regional airports programme, which ran from 2015 to 2019. There were difficulties because, following continued decline in demand for services from 2008 onwards, all remaining scheduled flights ceased at the airport in June 2016. Without those scheduled passenger services, the airport's operations failed to meet the connectivity objective associated with Government policy for the funding of regional airports. Policy on regional airports has always focused on optimising connections and connectivity. As a result, Exchequer funding is contingent on airports operating scheduled passenger services as part of their programme.

That said, it is recognised Waterford Airport has faced serious financial challenges.

I understand that, to avoid liquidation, the airport sought emergency subvention from my Department in December 2017. On foot of this and subsequent requests, emergency operational payments totalling €1.5 million were made to Waterford Airport, with the last payment made in 2020. This funding was provided on an exceptional needs basis, to allow time for the consideration of future options at the airport, including a proposal to expand its runway, as the Deputy has mentioned.

As members will likely be aware, in June 2019, the then Government gave an approval in principle of an expression of support for an expansion proposal at Waterford Airport and to provide Exchequer funding of €5 million towards a runway extension project.

The project was then estimated to cost €12 million and the €5 million Government support being sought at the time was contingent on local authority and private investment, necessary to complete the project, being committed and that any risks relating to cost escalation would be borne by the non-State investors. That is good housekeeping and good due diligence. The airport was required to submit confirmation of the local authority and private investment funding, as well as details of the project proposal to my Department for approval.

Despite engagement with the airport over the intervening period, this detail remained outstanding until 13 December 2023, when Waterford Airport submitted a development proposal to my Department. The costings from that proposal were substantially above the original estimated cost of €12 million, which is now closer to €27 million, or more than a doubling of the cost. This obviously deviates significantly from the original 2019 proposals. An early and positive assessment of the proposal is being sought by the airport, which is understandable. The Department prioritised the matter and completed an initial appraisal of the project in line with the public spending code and infrastructure guidelines. However, a number of clarification requests were issued, as the Deputy alluded to. Further information was submitted and received by the airport on 23 April. However, that was incomplete. Further matters were raised, which remained outstanding on 27 May. It is only in the past five weeks that the Department has had full information to decide on the matter.

I am aware that my predecessor, Deputy Jack Chambers, the Minister of State, Deputy Butler, and the recently retired Mr. Michael Walsh of Waterford City and County Council had a recent meeting to discuss the matter. I assure the Deputy that my Department is continuing to engage with airport management to bring the matter forward, but he will understand that information is power. Without information, it is difficult for anybody to wield power. That information has only recently been received in the past month and we can now bring that forward and give it proper consideration.

David Cullinane (Waterford, Sinn Fein)
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I commend the Minister of State on his appointment and thank him for taking this Topical Issue.

The problem is that this has been an issue for the better part of ten years. I know that, in reality, this was substantially moved in June 2019 when former Minister, Shane Ross, and the Cabinet signed off on a proposal for €5 million. I accept the costs have escalated since. One of the reasons the costs have escalated is there has been no movement on the issue. If, in 2019, the proposal had been accepted, funded and we had all the legs of the stool in place at that point, we would be a long way in and I imagine the runway would have been built by now. Yet, here we are in 2024. Of course costs have escalated because as the Minister of State knows, there will be increasing costs for any building project that is five years late. I can point to any State project that has been delayed.

It is new information the Minister has given that additional information was given on 27 May, which I welcome. The question now is: at what point are we going to continue to have discussions about the business case? The Department received a proposal in December last year and additional information in April of this year. More meetings took place between Department officials and the board, and I welcome that. By the way, I fully accept that the Department has a job to do because it is signing off on taxpayers' money. I hope the Minister of State will also accept that there is a deep frustration in Waterford that there is no movement on this issue. They cannot see movement, at least. Given that additional information was given on 27 May, can he confirm that is the end of information being sought from the airport, that the Department has all the information it needs and now what needs to happen is a decision simply needs to be made? Can it at least be confirmed today that this is where we are at?

James Lawless (Kildare North, Fianna Fail)
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I thank the Deputy. A couple of matters arise. He characterised this as not quite a six-year delay, but a five-year delay from 2019 to 2024. It is fairer to say that it is a six-month engagement, given that a business proposal was received by the Department in December 2023. Elements were missing from that, which required revisiting in April 2024 and further information was received at the end of May 2024. In actual fact, if we look at timelines, it is a six-month engagement.

As the Deputy said, and I echo his sentiment, it is taxpayers' money. It should be subject to due diligence and all the checks and balances under the public spending code and infrastructure guidelines. Finance is a part of it, and the project cost has doubled. It is not the only part, by any means. Information is essential to do a proper, thorough and robust assessment. As an island, connectivity is essential for our economic development and we recognise the huge value of the aviation sector in supporting economic development, international connectivity and tourism in Waterford and the south east. I am very aware of the importance of the airport for all of those reasons.

Aviation fell off a cliff in the period between 2019 and 2024. Covid happened in 2020 and there were two years where we did not have planes in the skies at all. On the part of Waterford Airport, the wider system had other preoccupations in those years as well. I welcome the fact the project has restarted and the information was submitted last December, with further information since. The project has been prioritised by my Department and I give a commitment to follow up on that and take that from today. The increased Exchequer funding of €12 million being sought is being assessed and the proposal is being reviewed by my Department in accordance with its transport appraisal framework and infrastructure guidelines. In accordance with that framework, if a proposal seeks Exchequer funding that has a potential cost of €15 million or more, a sponsoring agency must produce a project outline document to be approved by the approving authority. There is a little more complexity to it. Given the increased costs, it comes into a different range in terms of approvals. That project assessment document will appraise the proposed scheme in line with national and local polities. As I have said, I hear what the Deputy and the Minister of State, Deputy Butler have said and I commit to investigating this further.

Catherine Connolly (Galway West, Independent)
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Déanaim comhghairdeas leis an Aire Stáit as a ardú céime. Go n-éirí leis ina ról nua mar Aire Stáit.

James Lawless (Kildare North, Fianna Fail)
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Gabhaim buíochas leis an Leas-Cheann Comhairle.