Two Governments Announce Decision In Principle To Provide Ł10 Million For City Of Derry Airport

24 March 2005
TWO GOVERNMENTS ANNOUNCE DECISION IN PRINCIPLE TO PROVIDE Ł10 MILLION FOR CITY OF DERRY AIRPORT
Regional Development Minister, John Spellar and Foreign Affairs Minister Dermot Ahern today announced the two Governments' decision in principle to provide over Ł10m financial assistance for City of Derry Airport. The support is in response to requests from Derry City Council and local MP John Hume for funding, including the long term development of the airport.

John Spellar said: "City of Derry Airport is highly valued by the people and businesses of the North West. Its importance was recognised in the Regional Development Strategy and it is seen as very important for the development of the region. That is why I am extremely pleased to join with Minister Ahern to announce a positive response to those proposals. This is an excellent example of practical, effective North/South co-operation. This announcement follows other good news for the North West, notably the decision to fund the Railway Review Group's Option 2, to maintain the level of service on the line to Derry, and the decision to undertake a study of possible options for future dualling of the A6 between Castledawson and Derry."

Minister Ahern emphasised his Government's support for the current proposals: "City of Derry Airport is a prime example of transportation infrastructure which serves communities on both sides of the border. It is this crucial North/South dimension which is the distinguishing feature of the airport, and which persuades the Irish Government that further investment in the airport will deliver benefits to its citizens in the Border Counties and beyond."

John Spellar added: "We must all recognise that the revised proposals require the acquisition and removal of a number of properties in the vicinity of the airport. Inevitably, this will involve a degree of disruption and upset, and I have received representations about this. I sympathise with the concerns of all those whose homes and property would be affected, and assure them that due process will be applied and that their interests will be taken fully into account."

Concluding, both Ministers commended all involved in devising the Steering Group's revised proposals and looked forward to continuing the constructive engagement with Derry City Council and with the stakeholders in the North West.

NOTES TO EDITORS:

1. City of Derry Airport is owned and operated by Derry City Council.

2. In late 2003, Derry City Council presented an economic appraisal relating to a proposed development of the airport, including an extension of the runway, at a total capital cost of some Ł18.4 m. Earlier in 2003, the Council had bid for Ł4.6 m, relating to a cost overrun on the 1998/99 runway upgrade and to other mainly safety-related capital developments that had been undertaken by the airport.

3. Following dialogue with Government, Derry City Council set up a Steering Group in May 2004 to review the original proposals. The Steering Group was chaired by the Chief Executive of Derry City Council and involved a range of North West interests with input from officials from Northern Ireland departments and the Republic of Ireland Government.

4. The Steering Group submitted its report to the Secretary of State on 2 November 2004. The report contained revised proposals, not requiring a runway extension, with a capital cost of Ł10m.

5. The decision in principle is to provide 75% grant support, split equally between the two Governments, for:

- cost overruns on the previous runway projects plus capital expenditure required to comply with safety requirements - grant support from each Government of approximately Ł1.5m.

- the Steering Group's revised proposals, involving clearing obstacles at the western end of the runway and other safety related work - grant support from each government of approximately Ł3.75m.

6. This decision in principle is subject to a number of important conditions:

- It will be necessary to seek and obtain State Aid clearances from the European Commission.

- It will be necessary for Derry City Council to obtain all the necessary statutory consents, including planning approval, for its revised proposals.

The two Governments strongly endorse the Steering Group's conclusion that changes in the governance arrangements for the airport are essential to a more successful future.

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