Stormont intends to assume responsibility for City of Derry Airport

The Stormont Executive could take over the cost of running City of Derry Airport, potentially saving ratepayers millions of pounds.

Speaking in the Assembly, Economy Minister Conor Murphy said his department intended to assume responsibility for annual running costs of around £3.45m.

The airport, at Eglinton, is owned by Derry City and Strabane District Council which has previously raised concerns over future funding.

Stormont is already paying £1m per year to sustain flights between City of Derry and London Heathrow. The public service obligation (PSO) route, currently operated by Loganair, has been funded jointly by Stormont and London since 2017.

The Minister said taking funding responsibility away from the council could allow it to invest in other areas.

He said: "It is our intention in terms of the airport's strategic, regional, economic presence and what that means for the north west generally that the Department of Economy (DfE) assumes responsibility for that.

"We need to work through the arrangements for all that.

"That would lift that burden that the ratepayers of Derry City and Strabane Council have been carrying on their own, even though the airport serves other council areas and other geographical areas as well, so it is and, of course, that will, in turn, allow the council to use that money for other purposes, hopefully develop economic prosperity within the council region."

The Department for the Economy (DfE) said it was working with colleagues at the Department for Infrastructure (DfI) to take responsibility for funding of the airport.

"This will enable the Derry City and Strabane Council to reinvest the £3m funding in initiatives to support regional balance.”

A spokesperson for Derry City and Strabane District Council said that Council welcomed the commitment by the minister for the Economy in his Sub Regional Economic Plan that he is working with his colleagues at the Department for Infrastructure, to take responsibility for the funding provided by the local council to City of Derry Airport.

This follows the submission of a business case by Council to Government in April 2021 aimed at securing a contribution towards the operational running costs of this important facility in line with the significant Central Government support provided to Regional Airports throughout Europe.

“Council and CODA officials have been and are continuing to engage with relevant Government Departments in relation to the detailed arrangements for the funding.

“The Council welcomes the Government’s recognition of the strategic importance of the Airport to the city and region in terms of the significant role it plays in economic connectivity and providing local employment,” the spokesperson said.

Outgoing SDLP leader Colum Eastwood has said the Executive must demonstrate a financial commitment to the City of Derry Airport.

The Foyle MP said: "The airport is a vital transport hub in this region but it totally unfair that our council should be expected to support it financially given its limited budget. Removing this burden would allow our council to provide millions in funding back into worthy projects across the area."

He added: "We now need to see a firm commitment from the Executive and Minister to protect services at the airport and to explore opportunities for growth in the future. Expanding the airport’s offering has often been hamstrung by its unique funding situation and we cannot waste this opportunity to establish a properly resourced airport in this region.”

East Derry MP Gregory Campbell said more is needed to help boost the airport.

The DUP MP said: "What must happen now is the Minister's Department needs to work in collaboration with the private sector to establish the best way of attracting a number of additional routes that will raise the numbers using the airport considerably. Failure to do this will simply result in the annual subsidy continuing to be required but being met by all of Northern Irelands tax and ratepayers rather than being placed on the shoulders of Londonderry and Strabane ratepayers."

Welcoming the announcement, councillor Sandra Duffy described the move by Conor Murphy as a ‘game-changer’ for the council.

Cllr Duffy said: “City of Derry Airport is a vital asset in terms of connectivity and regional balance for the whole north west but there is no doubt that the annual subsidy is also a huge cost to the council at almost £3.5 million a year.

“The fact that the Department of Economy now intends to take responsibility for that spend will free up a significant sum for reinvestment in front line council services and facilities as well as helping to secure the future of the airport.”