Referral of a proposed subsidy to CODA (Operations) Limited by Derry City and Strabane District Council
Source: gov.uk (2025-01-24)

The Subsidy Advice Unit (SAU) has published a report providing advice to Derry City and Strabane District Council concerning its proposed subsidy to CODA (Operations) Limited.

Administrative timetable

Final report

24 January 2025: The SAU has published its report providing advice to Derry City and Strabane District Council concerning the proposed subsidy to CODA (Operations) Limited. The report sets out the SAU’s evaluation of Derry City and Strabane District Council’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-subsidy-to-coda-operations-limited-by-derry-city-and-strabane-district-council) (24.1.25)
Request from Derry City and Strabane District Council

10 December 2024: The SAU has accepted a request for a report from Derry City and Strabane District Council concerning the proposed subsidy to CODA (Operations) Limited (CODA). This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the Derry City and Strabane District Council’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by Derry City and Strabane District Council

Derry City and Strabane District Council (the “Council”) are proposing to award City of Derry Airport a subsidy of up to £20.667 million to cover revenue and capital expenditure over a period of 4 years (from 1 April 2025 to 31 March 2029). The proposed subsidy will support the provision of airport services within the City of Derry Airport (the “Airport”) through CODA, a wholly owned subsidiary of the Council. The mechanism by which the subsidy will be awarded is through the purchase of further shares in CODA but in a manner which is acknowledged not to be a commercial investment.

The subsidy is intended to address an equity rationale relating to Derry and Strabane’s regional disadvantage against other parts of Northern Ireland and the UK, in particular its geographic remoteness and distance from alternative air transport infrastructure allied to its low levels of income and investment per capita. The Council is of the view that there is strong evidence of need for airport services which promotes connectivity for the region, and that the services would not be provided commercially on acceptable terms.

The subsidy will therefore enable the delivery of a public service of running the Airport as would not be delivered absent that public support due to the reasonable outlook for lack of operating profits from delivering the services. The continued delivery of the relevant services is considered of fundamental importance for the future prosperity of what is an acknowledged highly disadvantaged region which is also among the most geographically remote parts of Northern Ireland. As such, the proposed subsidy will be set towards the minimum costs of delivering a Service of Public Economic Interest (SPEI) between 1st April 2025 and 31st March 2029 (the “Term”). The SPEI to be funded is set at the minimum costs of running the Airport for the Term only and does not include support to any airlines or flight routes.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to CODA, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx).

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with Derry City and Strabane District Council. The SAU will send a copy of your submission to Derry City and Strabane District Council together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with Derry City and Strabane District Council using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)