Murphy: Economy department will fund CoDA to lift burden on Derry ratepayers

He made the revelation as he outlined details of a new Sub-Regional Economic Plan at Stormont on Tuesday.

"My Department is in the process of taking responsibility for the funding provided by the local council to City of Derry Airport,” he declared to MLAs.

SDLP MLA Mark H. Durkan asked: “Will the Minister expand on the process, which he alluded to in his statement but is not in the document, of his Department taking responsibility for the funding of City of Derry Airport, which is currently provided by Derry City and Strabane District Council? Will the Executive take the burden of funding the airport from the ratepayers of that council area?”

Mr. Murphy indicated his department intended taking on responsibility for funding the Eglinton air hub in order to allow DC&SDC use the money currently invested in the airport elsewhere.

“Given the airport's strategic and regional economic presence and what that means for the north-west generally, it is our intention that the Department for the Economy will assume responsibility for it. We need to work through the arrangements for that.

"That would lift the burden that Derry City and Strabane District Council ratepayers have been carrying on their own, even though the airport serves other council areas and geographical areas.

"Of course, that will, in turn, allow the council to use that money for other purposes to, hopefully, develop economic prosperity in the Derry city council region,” said Mr. Murphy.

Economy Minister Conor Murphy announces £1.018m for City of Derry Airport to London Heathrow flight

Sinn Féin Councillor Sandra Duffy described it as a ‘game-changer’ for the Council and ‘a huge boost to the ratepayers of this region’.

“CoDA 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,” said the Ballyarnett councillor.

The former mayor of Derry City & Strabane District Council said the development would ultimately allow for the funding currently expended on the local airport on other capital and current investments.

“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.

CoDA turned down for Dublin support due to ‘limited Exchequer funding’ but potential PSO route being reviewed

“I very much welcome that and commend the minister for his initiative and his clear and ongoing commitment to regional balance.

“This is a hugely positive day for Derry and the entire North West and we look forward to continuing to work with the department to progress this plan and to strengthen connections to the Airport to boost the local economy and ensure there is a direct link to the north west for international investors,” said Colr. Duffy.

The development was outlined by Mr. Murphy as he provided details of a new Sub-Regional Economic Plan that stipulates 65 per cent of Invest NI’s investments should be directed outside of the Greater Belfast area in future.

Councillors warn funding model for City of Derry Airport ‘unsustainable’