245 Deputy Joe McHugh asked the Minister for Transport in reference to the Public Service Obligation, the total budget allocated to this fund regarding transport; the persons eligible to draw down from this budget and the criteria or technical requirement; the breakdown of the allocation for County Donegal, Bus Éireann and private operators; the way it is awarded and monitored; the actual allocation to each of the above; if a service is discontinued by the operator, what happens to the allocation toward that service; the result of the most recent value for money and performance audit; and if he will make a statement on the matter. [47835/10]

The total budget for PSOs for air services for the period July 2010 to July 2011 is €15,563,871 of which €5,906,329 is allocated for PSO air services between Donegal Airport and Dublin and between Sligo Airport and Dublin. These two PSO air services are operated under a combined contract. PSO funding is also provided for air services between Dublin Airport and Kerry, Galway, Knock, and Derry airports.

Contracts for provision of PSO air services are awarded to the successful air carrier following an EU public tendering process. Carriers are required to comply with specific key performance standards which are set out in the relevant contracts. The Value for Money Review of Exchequer Expenditure on the Regional Airports Programme, including regarding PSOs for air services, has been completed and is at present being considered by Government. It is expected that, in the light of that Review, decisions on funding for regional airports in future years will be made shortly. Allocations in respect of bus transport public service obligations is a matter for the National Transport Authority (NTA) based on public service contracts between the NTA and providers, including Bus Éireann.