asked the Minister for Tourism and Transport if he has met a deputation or received representations from car-hire operators regarding the exorbitantly high rental charges for service desks provided at Irish airports by Air Rianta; and, if so, the action he proposes to take on the matter.
Ceisteanna—Questions. Oral Answers. - Airport Service Desks.
2.
As I indicated in my reply of 13 April, the three State airports are managed by Aer Rianta and the letting of the car rental concession at the airports is primarily a matter for that company. The main desks at the airports are allocated on the basis of tenders. Aer Rianta do not fix the fees. Because of keen competition, particularly at Dublin, the level of tenders has been high.
Arising out of a number of representations made by and on behalf of the Car Rental Council of Ireland, who represent practically all the car rental firms in the country, a meeting between the council and officials of my Department was held on 19 April. It was agreed to review the system with a view to developing revised methods of desk allocation for the future. This review is under way in consultation with the Car Rental Council, Aer Rianta and Bord Fáilte.
Does the Minister appreciate that any review which occurs and any new arrangements that are arrived at will not come into effect until 1980 because a new contract period was entered into recently? Is he aware that the Dutch auction type of system that has been operated has led to a completely ludicrous situation; that under the new arrangements recently negotiated certain firms are paying £700 per square foot for service at Dublin Airport and that they are paying pro-rata rates at Shannon and Cork? Is he aware this system discriminates against the average Irish small car operator?
I am aware that the system will continue for the next two years. As I told the Deputy, the matter is under review. The situation is that for the past two years at Dublin Airport there were four free-sale desks, two of which were held by Irish firms and two by multi-national firms. This year there are five free-sale desks, three held by Irish firms and two by multi-nationals. The matter is being reviewed and hopefully we will come up with a solution which will be more satisfactory.
The review is welcomed by all concerned, but is there any possibility, in the light of the fact that the review will be completed probably within 12 months, that the new arrangements would come into force next year rather than in 1980?
I am afraid there would be legal difficulties.
Would the Minister ensure that the benefits which Aer Lingus and Aer Rianta have from these operations will not be whittled away by way of indirect subsidy to the private sector which operates these activities?
That is a different question.