asked the Minister for Tourism and Transport the reason for the refusal by the British authorities to allow Ryanair to operate services (a) direct from Cork to Luton (b) Dublin to Manchester; if he intends to pursue the matter further at this month's Council of Transport Ministers; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Ryanair Services.
17.
The British authorities have indicated that they have deferred a decision on Ryanair's application to operate scheduled air services from Cork to Luton and from Dublin to Manchester. I have protested directly to the British authorities in the strongest possible terms about their action and I raised the issue at the Council of EC Transport Ministers on 9 June. I intend to continue to pursue the matter through EC and bilateral channels.
In relation to the Cork-Luton application, this route is not included in the current Ireland-UK Air Services Agreement. While the British authorities have previously indicated their willingness to accept freely the opening up of new routes, they now state that they are prepared to do so only in the context of an overall package with particular emphasis on the number of carriers that should be allowed on any route. The question of the number of carriers to be designated on UK-Ireland routes has also delayed approval of the Dublin-Manchester application by Ryanair. I have made it clear both at EC and bilateral negotiations that any expanded opportunities that are granted to external carriers to serve the Irish market must be balanced by meaningful fifth freedom rights for Irish carriers, who are handicapped by our peripheral location and a small home market.
I am hoping that at this week's Council meeting, which begins tomorrow morning at 9.30, Ministers will reach agreement on an air transport package which will create a more competitive and flexible air transport system in Europe, which will provide for a significant opening up of market access opportunities, including fifth freedom rights, and enable the setting up of new routes including those being sought by Ryanair.
It is extraordinary that the British Minister has refused those applications, although "deferred" is the word used in the reply. Is there more to this than meets the eye? Has the Minister indicated to the British authorities that he is granting licences to Irish operators or to independent operators with which the British did not agree? Are there any other areas of conflict about which we do not know? Is the Minister mystified by this refusal?
There has been no irritation, although a well deployed piece of irritation can be helpful at times in international negotiations. The British are anxious for multi designation on a city pair basis and they are holding this back in the hope that multi designation on a city pair basis may become available. I wrote to the former Minister for Transport, Mr. John Moore, asking him to see to it that the liberal philosophy which was being expounded is adhered to and that Ryanair should be allowed their service from Shannon and Cork to Luton. Mr. Moore was campaigning in the general election at the time I wrote. I then took the opportunity to write to Mr. Paul Channon immediately he was appointed, indicating that I had already written to his predecessor and that I expected that, in accordance with the liberal philosophy which was then outlined for the UK authorities, these two services from Shannon to Luton and from Cork to Luton would be approved by the British Government. I am continuing to pursue that line.
This refusal, or deferment, has all the marks of a reprisal by the British Authorities. The flight from Cork is ending up in Luton but Ryanair are being put to considerable extra expense every time they fly to Luton and besides that passengers have to endure a much longer flight path. Surely there is something sinister in this which has not been brought out.
I agree that it is unreasonable that the permission was not granted. I am continuing to maintain that position. I know the hardship caused to the airline concerned. It is not much longer, it is 20 minutes extra, but it means a touchdown in Dublin which is a farcical exercise in the context of discussions that are going on in Europe at this time about liberalisation. It is not the first time we found that sometimes a profession of liberalism and acting on it are two different things.
Is it correct that the British are looking for an increased number of operators or for permission to have an increased number of operators on the Dublin-London route and that the Minister has not agreed to that, or Aer Lingus have not agreed to it?
I would correct the Deputy on that. Aer Lingus are one company operating and Ryanair are the second Irish company. Both have to be taken into consideration when dealing with a matter like this. The UK authorities are anxious for multiple designation on a city pair basis. That answers the Deputy's question. We cannot see how multiple designation can be accepted on the one hand along with a refusal to extend fifth freedom rights to Irish carriers.
What action or argument does the Minister intend to use at the Council of Ministers meeting commencing tomorrow? Can the Minister resolve the present unsatisfactory situation?
One of the major subjects for discussion is that of fifth freedom rights. I would not like to under-estimate the difficulties with regard to this because a number of the major operators have already said they are not anxious to have fifth freedom rights between hub airports. There is a possibility — and the Irish carriers are more interested in this — of developing fifth freedom rights in hub to regional airports. Our carriers could benefit substantially from such a development. We will be pressing that area. There are difficulties. Major powers among the Twelve do not want to liberalise. Some countries do, and we are relying on those for support. Our principal objective is to extend fifth freedom rights for the benefit of all our carriers.
A Cheann Comhairle——
Will Deputy Keating allow me a moment? That seems to dispose of questions for today. There are approximately ten minutes left before we can go on to deal with the next business. I suggest that the House sitting be suspended until 3.45 p.m. and will the Minister please move along those lines.
On a point of order, may I raise the subject matters of items Nos. 34 and 35 on the Adjournment?
I will communicate with the Deputy.
Sitting suspended at 3.35 p.m. and resumed at 3.45 p.m.