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.