Money intended for City of Derry Airport handed back

by Gareth Cross

A government department was forced to hand back cash intended for City of Derry Airport, it has emerged.

The Department for the Economy have confirmed to The Derry News that they were allocated funding for the airport for 2016/17 but that the funding was 'surrendered as it could not be utilised'.

It comes after concerns were raised that the airport may miss out on vital funding due to the collapse of the Stormont Executive.

The Northern Ireland Executive agreed a £7m funding package to safeguard the future of the airport in September 2016.

Speaking at the time then deputy First Minister Martin McGuinness said he was confident the money would help the airport grow.

It was revealed at a meeting of Derry City and Strabane District Council's Assurance, Audit and Risk Committee at the Guildhall this week that the airport has yet to receive any of the committed money.

A spokesperson for the Department confirmed that they would continue to work with council going forward.

“The Northern Ireland Executive announced a £7m support package for the airport in October 2016, which included £2.5m for air route development," the spokesperson said:

"The Department for Economy was subsequently allocated this funding for the 2016/17 financial year. However, following engagement with Derry City and Strabane District Council, this funding was surrendered as it could not be utilised in part or full in that financial year.

"Department for the Economy officials continue to engage with Council officers to progress route development options for the airport.”

Future funding for the airport was raised at council this week as councillors were discussing council's Corporate Risk Register including council's financial commitment to the airport going forward.

Council officers said that the airport was being treated as an 'ongoing concern' and was funded by council until March 2019.

Independent councillor Paul Gallagher said that he had concerns around looking at the airport as an ongoing concern.

Cllr Gallagher told the meeting that the airport was a high financial risk.

He said that he was there was 'great concern' that the airport could go from a going concern to a bailout which would be paid for by ratepayers.

Council Chief Executive John Kelpie said that council would 'keep a close eye' on the issue going forward.

Cllr Gallagher asked if the airport does not get the £7m funding from the Executive where will it come from? He asked if the funding could disappear completely.

A council officer said that the airport was funded until March 31st 2019 and that the Executive funding was intended for developing the airport through route development and other avenues.

Following the meeting a spokesperson for Derry City and Strabane District Council advised that the airport is included in the Corporate Risk Register that forms part of a quarterly update to members of the audit assurance and risk committee.

The spokesperson said that council 'are satisfied that we have made appropriate financial provision for the operation of the airport moving forward'.

They said that council is working to ensure that the airport receives the promised funding.

"Council is continuing to liaise with the relevant departments of Government to access the funding previously committed to the airport and remain committed to planning for the future development of this important facility for the North west region," said the spokesperson.

Speaking on Tuesday SDLP Leader and Foyle MLA Colum Eastwood said that political stalemate cannot be allowed to threaten the viability of the airport

“The price for political failure cannot once again fall on the people of Derry," he said.

“The Executive made a specific commitment to ensure the viability of the City of Derry Airport as a key regional transport infrastructure centre.

"That commitment cannot be reneged on now. Political instability cannot lead to economic instability in the North West.

Foyle Sinn Féin MP Elisha McCallion said she would be seeking an urgent meeting with the Head of the Civil Service to press for the immediate release of funding earmarked for City of Derry Airport.

She said she would be demanding to know if the airport will receive the money as promised.

"I will be demanding to know if that is the official position of the Civil Service," she commented.

"Because if that is the case, it smacks of a political decision."