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Dáil Éireann debate -
Wednesday, 15 Oct 1997

Vol. 481 No. 5

Air Navigation and Transport (Amendment) Bill, l997: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Before the debate was adjourned I referred to the need to support the campaign to retain duty free which is at the core of Aer Rianta's income and is crucial as support funding for the new style organisation proposed. We should be excited about the development given that we have a booming economy and are regarded as a model environmental and investment nation. Ireland, which has the largest growth economy in the world, is among the most popular tourism choices.

We are transferring more than assets to Aer Rianta under the proposed restructuring. We are handing it an opportunity to bring Ireland confidently into the next millennium and the freedom to take initiatives to encompass more than it does today. I look forward to backing Aer Rianta and its staff in this new challenge as they target new goals.

Since the time Sean Lemass proved that rabbits would not run across the desolate runways of Shannon airport, as predicted by the then Fine Gael leadership, Fianna Fáil has shown that it can deliver. We can be proud of our nation which was born out of the brilliance of Lemass. What we are doing today is offering a successful State agency the freedom to go forward, to expand into new horizons and to continue its success. We will deliver fairly to all airports and ensure competition in the air industry. This will guarantee that the current scandal of the inordinate and totally unfair levels of fares and services out of Dublin is ended.

Will Cork airport be put on an equal footing with Shannon and Dublin airports as regards marketing support for new and existing business? What will be the valuation system after the assets are transferred to Aer Rianta? Infrastructural investment in Cork airport was minimal for many years relative to Shannon airport and many of its assets are in a very rundown condition. These assets should be transferred to Aer Rianta at zero value. At present, route subsidies are paid by the EU via the Government to specific routes, for example, Dublin-Kerry, Dublin-Sligo and Dublin-Donegal. Will a similar arrangement be implemented for Cork airport which badly needs investment in infrastructure to assist it in exploiting the major opportunities which growth in traffic has presented? Passenger traffic has trebled over the past ten years and continued growth is inevitable. Will the Government consider purchasing additional land on a once-off basis to enable Cork airport to continue developing and contributing to the region's economic success? Cork airport will have a throughput of 1.2 million passengers this year. At least one of Aer Rianta's directors should be from the Cork region. The board should have equal representation from the three regions, Cork, Shannon and Dublin.

On section 55, given the contribution by the then Department of Transport and Power towards the cost of providing a water supply to Cork airport in l960-1, from which the city and county benefit, a proportional rebate in rates should be agreed with the local authority. On section 58, it is unfair to compel Aer Rianta to accept liability for personal loss or injury claims which relate to events which occurred prior to vesting day.

Are the same criteria applied to investment in each airport? I understand £35 million was invested in Shannon airport which is four times the size of Cork airport and has a passenger throughput of approximately 1.3 million per annum, if one excludes the 400,000 passengers who do not leave the aircraft. I am not opposed to investment in Shannon airport but Cork airport needs investment with similar incentives to those enjoyed by Shannon airport. The Minister must address how European Regional Development Fund grants are allocated among the airports. Duty free profits of approximately £2.5 million account for the total Cork airport surplus annually. If this money is lost after l999 there will be no further development at the airport unless funding is raised from other sources. Increased fares could adversely affect passenger numbers and there is, therefore, a special case to be made for retaining duty free at Cork airport, the most peripheral airport in Europe.

In supporting the Bill there are a number of important points I will bring to the attention of the House. We do not often discuss air navigation and safety and when we do the importance of air travel needs to be recognised by all Deputies. Flying is no longer the preserve of the so-called jet set, it is now a routine method of transport for many people. People who fly frequently and holidaymakers are particularly concerned about air safety issues, while business people are concerned about ease of access to different regions.

The main purpose of the Bill is to terminate the present airport management arrangements under which Aer Rianta operates as an agent of the Minister and to put new arrangements in place. The Minister is also availing of the opportunity to update a number of provisions of airport related legislation, some of which dates back to l936. Aer Rianta is being established as a semi-State body and will assume ownership of Dublin, Shannon and Cork airports which up to now it has managed on behalf of the Minister. The Minister said the current arrangement is outdated and needs to be modernised and streamlined. I anticipate that greater cost effectiveness and the more rigorous commercial climate in Aer Rianta to which the Minister referred will result in a reduction in landing fees and a greater level of service to Cork airport.

Cork airport has a throughput of approximately 1.2 million passengers per year. However, the level of service to the airport, particularly by Aer Lingus, has not changed for several years. For example, the connections to Dublin are inadequate. There is much dissatisfaction among frequent business travellers about the 6.25 a.m. flight which does not arrive in Dublin in time to enable them make connections to most European destinations. It is unacceptable that they should have to fly via Heathrow at the peak time of 9 a.m. when there are long stacking delays over London. There is also a changeover time from terminal 1 to terminal 2 at London Heathrow of a minimum of 17 minutes. The last flight from Heathrow to Cork leaves at 10 p.m. which means people often have to fly out via Heathrow and back via Dublin, thus precluding them from availing of cheaper fares and often necessitating a third flight on the homeward leg of the journey. These points are relevant to the debate in that the routing of significant volumes of Cork-continental traffic over Heathrow means a loss of landing charges at Dublin. I hope the newly constituted Aer Rianta will be pro-active in stimulating the improvement of services at the airports under its control.

I am also concerned at the poor connections to destinations other than Dublin and London. I put down a marker that the people of Cork will no longer tolerate an airport which is treated as an outlying branch of the Dublin and London international hub airports. We want direct connections beyond England. I do not understand why more airline companies do not make use of the so-called fifth freedom rights to pick up passengers in a third country. A little imagination might promote more air travel in Europe. For example, Iceland Air runs flights for shoppers into Cork on certain weekends and carries tourists back. It also runs a daily service from Reykjavik to London. It might be possible to make a service to Paris or Brussels via Cork into a paying proposition.

It is also time we promoted better domestic services. At present a tiny plane operates a direct service between Cork and Belfast. However, many people only fly by jet. The one domestic jet service which has the potential to beat rail and car travel in terms of time is the one from Belfast Aldergrove to Cork. An addition to this service to the Continent would pay. For example, a Belfast-Cork-Brussels route could pay for itself.

There are frequent aircraft changes in Dublin on the so-called direct flights from Cork to Paris and Frankfurt. This annoys passengers who believe they have chosen a direct flight and makes a farce of the claim that Cork Airport has direct connections to the Continent.

Another concern is the decision by Aer Lingus to purchase a number of Airbus 321 aircraft for the Dublin-London route. Cork is not the poor relation but an important economic region acting as a counterbalance to the Dublin metropolis and its centralising forces. A larger aircraft should be assigned to the Cork-London Heathrow route, specifically to work the business flights in the morning and evening. The present Boeing 737 400 aircraft on this route is filled to capacity and has limited room for the large amount of hand luggage of business passengers. The Airbus 321 aircraft has more space and would be more comfortable for passengers.

I wish to refer to a matter of deep concern to me. I have been advised that 260 passengers were left stranded by Ryanair at Cork Airport last Sunday. They were left in limbo for up to eight hours and were not told the reason for the delay or about the flight cancellation. The company has a duty to relieve the anxiety of passengers and advise them as quickly as possible of alternative flights or the provision of accommodation. No one can disagree that passenger safety is paramount in air travel. Passengers are entitled to information regarding planned flights. Contingency plans must be put in place by Ryanair to deal with breakdowns and delays. Information, food and accommodation are the basic rights of air passengers. The Minister should order an inquiry into last Sunday's incident because the tourist industry could be damaged by justifiable comments from irate passengers. The Minister should insist that Ryanair puts in place a strict code of practice on passenger care in the event of delays.

As a Cork Deputy, I cannot leave the subject of air transport without referring to the Aer Lingus Tuskar Rock disaster on 24 March 1968 when the St. Phelim mysteriously crashed into the Irish Sea with the loss of 57 passengers and four crew. People in Cork are no more satisfied with the answers given in the 1970 report than people in Derry are with the official reports of the events of 1972. I hope, with a new British Government in office, which appears to be opening files kept shut by the Cold War mentality, the Minister will ask her British counterpart to disclose all military aircraft and missile actions in south Wales and over the Irish Sea on the day of the crash. It is almost 30 years since that event and there are persistent suspicions of a cover-up on the cause of the crash. Only a full disclosure of documents on the event, which should have no military sensitivity at this stage, will answer the questions about this incident.

In supporting the Air Navigation and Transport (Amendment) Bill, I look forward to a better and safer level of air transport for my region as a result of the legislation. We should show confidence in the achievements of Aer Rianta and give it the mandate to seek new partners, investment and projects so that in years to come we will look back at this measure as a giant step forward in the ongoing success of Aer Rianta.

In welcoming this Bill which addresses the establishment of Aer Rianta as a semi-State company, I wish to put on record my admiration for the exceptional contribution by the management and staff to Aer Rianta and the facilities it controls. Aer Rianta provides excellent management of services and facilities for the air travelling public throughout its airport network. There are a number of points of concern which the Minister may wish to address. If this is to be a strong, vibrant company ensuring a smooth flight into the next millennium, there must be a progressive view as to how it is managed and developed so that it attracts the best people and rewards them for their work and efforts. It is reasonable that an element of the shares of the company should be set aside in the interests of the staff, providing a system of reward for their contribution over and above that covered by basic salary.

Section 17 gives wide power for the acquisition of lands for the protection, development and extension of the company. While that is acceptable and reasonable, that power must not be allowed to be used to the detriment of property owners in the area. Aer Rianta must not be allowed now or in the years ahead to create a monopoly for itself or its ancillary businesses in the vicinity of the airport. It would not be in the public interest for local job providers to be refused the opportunity to develop business and employment because the company may at some time wish to undertake development. There is a great deal of property around Dublin Airport and the company has, from time to time, tried to negotiate with the people who own that land. I would not like to see it with a monopoly on all the land around the airport because other businesses could be developed there, ensuring competition in the area.

Section 21 gives wide powers to the company to impact on the local community. Those powers, which allow for road network interference or alteration, while necessary, must be granted only to the good corporate citizen. In the past when a new runway was constructed it required the diversion of traffic, imposing considerable extra travel on road users and involving considerable cost to the people living in areas around the airport. If it is deemed that a new road network would reduce travel distance, the local authority must make a contribution to its construction, yet when there is a cost in the long-term the people and the local authority bear the cost.

As a result of the provision of a new runway, the people of St. Margaret's, County Dublin, were adversely affected by a change in flight paths. The noise of planes penetrated houses, severely upsetting the lives of people living in the village. It is regrettable Aer Rianta had to be forced to resolve that problem. Aer Rianta must not only accept the principle of good corporate citizenship but put it into practice. Residents in the Howth peninsula, Baldoyle, Sutton and other areas have complained in the strongest possible terms about the appalling nuisance and upset caused to their communities by over-flying aircraft. There seems to be a gradual change in flight paths in an easterly direction, with aircraft over-flying settled communities and built-up residential areas. The position has deteriorated rapidly in recent years, with the creation of appalling noise and nuisance levels. The communities affected insist the offending flights cease immediately.

Duty free changes which will come into effect in 1999 will have serious consequences for the long-term cost-effectiveness of the airport operated by Aer Rianta. The benefits derived from promoting duty free shopping at the airport include low cost charges to flight operators, a benefit which is passed on to the public by way of reduction in the cost of air fares, which is a major factor in attracting tourists here.

Ireland and the United Kingdom are different from other European countries in that they are both islands. Apart from our beautiful coasts, we have other tourist attractions, many of which are situated in the Fingal area. There is the Howth peninsula with its excellent walks and fishing port. Tourists from all over the world visit that area in the summer season. The Malahide demesne is another excellent attraction as is Newbridge House and Ardgillan House which should be a priority on any tourist agenda. There are excellent coastal drives and rural landscapes within the Fingal area. Aer Rianta and Fingal County Council should work together to promote this area which could attract many tourists.

Ireland has a special case which the Taoiseach forgot when he had the opportunity to defend it. The removal of duty free will cost jobs in tourism, shops, restaurants, filling stations, bed and breakfasts and hotels. It will have a major negative effect on our economy. We must help Aer Rianta build on its success. I welcome the fact that the Minister said there would be resistance to the EU directive from her and the Government. I hope they are successful and that the duty free facilities our airports enjoy will not be damaged.

The company must promote low service costs, generate good employment and establish first class customer facilities, and the company has to date been very good in these three areas. The company should establish an enterprise development task force to address the job losses arising from TEAM, a company which increased co-operation between Aer Rianta management and other agencies, including Fingal County Council, the IDA, FÁS and CERT, and created real job opportunities for the community of north County Dublin. However, the Government must set out for the board of Aer Rianta the objective of real second generation jobs. What is used in the airport should be produced in the airport. Management must ensure these products are made in the vicinity.

Section 55 ensures local authorities will now receive the full value of the rate due on Aer Rianta properties. It will give it much needed funding of approximately £2 million at an important stage in the development of Fingal County Council. That is in addition to the £500,000 provided under the rates support band. I welcome this because Fingal is a new council, only three years old, trying to establish itself while giving a good service to its people. It was a bone of contention for years that there was a marvellous facility at the airport which paid no rates, yet the council was providing and maintaining the infrastructure — the roads. This money is welcome because the council has received much criticism in the past three years for imposing a water charge which yielded approximately £2 million per year. If the council had had that money from Aer Rianta over the past three years, it would have been spared such criticism.

Like other councils, Fingal also has a housing problem and £6 million over three years would have gone a long way to helping to relieve it. To this end, a seat on the board of directors should be set aside for members of the local authorities in whose area these airports are located. This would be of great assistance in ensuring the company acted in the best interest of those with whom it interfaces.

For too long, the Legislature set upper limits and defined amounts on the financial aspects of Bills rather than incorporating an inflationary factor. This is relevant in respect of the maximum amount of fines which may be imposed. Where the figure of £1,500 may be reasonable on summary conviction, this would be eroded over time and sooner rather than later. Surely we have learned enough to ensure the continued relevance of these amounts to the offences they are designed to punish. The same difficulty may arise under section 13 where the borrowing requirement is capped at £250 million. Other speakers have mentioned this and I agree that the company directors' hands should not be tied by capping the amount of money that can be borrowed. More leeway should be given because the company is working abroad and involved in many deals which cost a large amount of money. Finance should be made available to it when it is needed. We are enacting this Bill to create the basis of a company which will have a real degree of independence and not one which will be at the mercy of the Minister at a time when inflation has eaten into the true value of this figure.

This Bill is welcome as it establishes Aer Rianta as a normal commercial semi-State body. It removes it from the direct control of the Minister, and the Minister's assets at the airports — Dublin, Shannon and Cork — will be transferred directly to Aer Rianta. In future, the board of management of Aer Rianta will be responsible for the investment in and the development of Cork, Dublin and Shannon airports.

As Cork is the smallest of these airports, I ask the Minister to implement special arrangements to ensure the new board will have representation from the Cork region, by ministerial nomination and at elected director level. At present, there are two directors elected to the board and, because of the limited constituency of Cork, it has been an issue that worker-directors there could never be elected to the board. This is an unsatisfactory situation which should be considered.

With the passing of this Bill, Aer Rianta must ensure it generates enough revenue to cover costs and remunerate its capital. The proposed abolition of duty free sales within Europe by 1999 will have a detrimental effect on the airport revenue. Duty and tax free shopping plays a major role in keeping down the cost of air travel. Without it, airport charges could increase by 50 per cent, with ticket prices rising for all travellers, including visitors to Ireland. This is at a time when we are launching a major initiative to attract tourists to Ireland. Our tourist industry could not sustain an increase in airline charges to this country. Non-EU destinations would become more attractive from a price point of view. Low cost airlines would be the most seriously affected in this situation. Ryanair, which has championed the case of the low cost flyer, would be forced to increase its fares.

To promote regional airports and attract different airlines and routes, Aer Rianta offers an incentive scheme to airlines. These schemes would not now be viable because of the serious lack of revenue from duty free sales. It has been stated that it could result in the closure of regional airports. This would be unsatisfactory at a time when the world is getting smaller because of air travel. We need to provide more regional airports in Europe, not to close them. Ireland, as a small island nation, is at a serious disadvantage from an access point of view. We are dependent on our airports and we need to invest in them further to recognise their importance in our infrastructural development. Ireland is the only European country without a direct connection to the Continent. It is vital the Minister demand special consideration. If one travels from Paris to Brussels and one cannot fly for some reason, one can always use the fast train service or the motorway. One cannot in Ireland; we are dependent on our airlines and, therefore, cannot afford to do without the revenue from duty free sales. If this revenue is abolished, a special case should be made for Ireland and air fares to Europe and other destinations should be subsidised.

The Minister is aware that Cork Airport does not have any transatlantic traffic and is dependent on duty free sales within Europe. Aer Rianta's report last year showed Cork would have suffered a financial loss if it had not been for the revenue generated from duty free sales. Under this Bill, Cork Airport and others will be liable for local authority rates which will add to Aer Rianta's bills next year. Cork needs its airport and direct access to European destinations if industry is to be attracted to the area. If we want to promote Cork as an integrated part of Europe with easy access to the Continent, we must recognise the importance of Cork Airport and the essential part it plays in promoting the south of Ireland. It will require a special commitment from Aer Rianta to ensure the development of Cork Airport and I urge it not to lose sight of its responsibilities in this regard.

Investment of over £200 million in airport facilities is due to take place over the next five years. This consists of a Pier C Terminal West development at Dublin, a 60 per cent extension to the main terminal, a new passenger terminal at Shannon and the development of freight facilities at Cork.

I welcome the proposed investment in Cork airport. It should be designated as an airfreight gateway to Europe and the rest of the world as Munster is the capital of food production in Ireland. This may be a way forward for Cork and such investment should be considered by Aer Rianta.

More should be done to develop Cork-Dublin air services. This is a regular commuter route which is quite expensive and restrictive. From Cork, one can fly to London cheaper than to Dublin. A shuttle service should be investigated similar to that operated between London and Belfast where one turns up and buys a ticket, there is no check in or other formality. If one is travelling from Cork to continental Europe, one invariably has to travel through Dublin, flights are restrictive and one must overnight in Dublin or London. This is contrary to the idea of opening up the airways. A rail service from Dublin city centre to Dublin Airport would greatly enhance the facility and make things much easier for commuters travelling to the airport from Cork and other regions.

I welcome this Bill. However, I re-emphasise the importance of Cork airport to the economic, industrial and tourism development of the region. I hope Aer Rianta will give special consideration to Cork and will not let a potential loss of revenue from duty free sales influence its investment in Cork airport.

We have often heard the saying that all politics is local. Having listened to Deputies Cosgrave and Clune and living a few hundred yards from Cork airport, which is in the middle of my constituency, I hope I am forgiven for being a little parochial. The Minister pointed out that this Bill is long overdue. It is important in the context of our commercial base. The Bill provides Aer Rianta with a level of commercial freedom and responsibility. At the same time, it retains the company's answerability to the Exchequer and the taxpayer.

By any yardstick, Aer Rianta has been a hugely successful company. By virtue of its activities abroad it has been able to invest in upgrading our airports. This is the age of air travel — it is not just the elite who now travel by air. We need to look at expanding rather than contracting the service. This Bill will enable Aer Rianta to move forward.

As one who worked in a semi-State company for much of my adult life, I am aware of the restrictions imposed which force them to compete with one hand tied behind their back. The original capital funding and social commitments, such as providing a public transport service, have inhibited many of these companies. They are the nearest we will get to socialism and this is accepted by the public.

The Deputy should not give up hope on that yet.

The Deputy is moving our way.

The Deputy might be moving in our direction. We have not given up hope on it.

The Deputy might have given up hope on it because he is doing so badly in the opinion polls.

We are not doing badly in the polls.

If it means that some of the militant left become less militant to make up a Government, I am sure people will be willing to move a bit.

The Deputy will have to talk to Deputy Higgins about that.

I have been unreservedly committed to the concept of semi-State companies. It is one of the primary reasons I joined Fianna Fáil as it was instrumental in establishing the majority of these companies. They have worked under a handicap and this legislation is necessary. Most of it was prepared during the previous Government but this Minister will steer it through to the Statute Book and ensure it is implemented.

Aer Rianta is a classic success. Some people have been concerned that the company might be moving towards privatisation as a result of the chief executive's comments on the need to raise capital funding. However, the Minister has assured us that that is not the case. We wish to ensure that the company can compete and move forward. It has been said that it must move forward in an even handed manner. That was not the case in the past. Shannon had its own fund which some described as a slush fund. SFADCo marketed Shannon worldwide. It also had certain restrictions built in such as the compulsory stop-over which other regions did not have. Dublin had the benefit of being a capital city, so there was almost no need to market the airport as people wish to fly into the capital. Cork airport had no marketing budget despite the fact that £2.5 million was available to Shannon. The playing field has been levelled since but we wish to ensure that there is an even handed approach to the future marketing of the three airports.

The political lobby has been part of Shannon airport's success. When Shannon was threatened, people from all parties in the various constituencies in the region came together. I advocated this for Cork before this Government was elected. I appreciate that Aer Rianta is a national company in an international business. The situation in Cork was so bad that a group was established called CASE — Cork Airport Seeks Equality. These people's jobs were under threat because of lack of financial input for capital works and marketing. This has changed but it needs to continue changing and this requires the Minister's assistance.

The Minister said that this Bill will allow Aer Rianta to develop lands other than those it currently occupies. Deputy Cosgrave seemed to object to this. Aer Rianta already owns six acres adjacent to Cork airport. There are proposals to develop a business and technology park on the site which would be the largest project in Cork for many years. The project would cover 600,000 square feet at an estimated cost of £35 million. Aer Rianta is taking a 25 per cent stake in the company. Work on the site will involve software development, data processing, internationally traded services and telesales. Hopefully, a hotel and leisure complex will follow. This would mirror what has happened internationally. I am happy that restrictions on Aer Rianta's involvement in such a venture are being removed. I commend those involved and wish them well.

While painting a bad picture of the past, I wish to paint a very positive picture of the local staff of Aer Rianta in Cork. Despite impediments and the threat to its future, they persisted and have been most innovative. Up to three or four years ago there was a huge rate of diversion of flights due into Cork airport and the staff persisted in their efforts to get improved landing facilities including lighting, runways and communication systems. The results of the perseverance by workers and management in Cork is that flights are now rarely diverted. They have proved themselves to be the best and they deserve and need support. I am sure the same is true of the staff and management in Dublin and Shannon. International travellers will not tolerate second class service. They will simply find another venue. The success of Dublin and Shannon airports must be related to the respective staffs.

We have worked under other handicaps and the question of future funding is important. In the European context, INTERREG I and II provided billions of pounds to assist with border controls, border crossing and water boundaries. Airports have not benefited sufficiently from these programmes. We need to make a case for them, especially in the context of the threat to duty free sales. I commend the Minister for Public Enterprise, Deputy O'Rourke, for her very strong defence of duty free sales. She deserves and needs our support. References to previous situations is not good for Ireland. Neither is slagging of any benefit. We should be united in strongly defending duty free sales. Traders and shoppers have said duty free sales affect them, but in the national context it is a very important scheme. It provides funding which is being ploughed back into shipping and air services. Funding would have to be provided by the Exchequer in the absence of such revenue.

Marketing, the sole preserve of Aer Rianta, is of critical importance. It will decide the future not just of the airport staff. Regional airports are important as they influence the enterprises, tourism and related services and businesses that come to an area. One of the first questions of business people wishing to locate or do business in an area concerns air access.

The present situation in Cork is deplorable under a number of headings. This is a problem for Aer Rianta, but also for the air companies. Aer Lingus has let us down in this context, but Aer Rianta will be able to encourage other companies to come to Cork, something that will become easier with the deregulation throughout Europe. We need to market Cork. The demise of SFADCo has evened the pitch a little but there are still a number of flights diverted to Shannon which would not go there by choice. This needs to be balanced.

There are no international schedules operating from Cork to Europe and the US. The EU is committed to the regional concept. It wants to see programmes based on the regions and funding being dispersed on a regional basis. It wants services to be regionally based. Therefore, Cork will have to get its share of European and US flights. I do not know how this will be managed because we do not want to give too much direction to the board of Aer Rianta, but it should be advised to look at the whole country and try to service each of the regions.

The directors of Aer Rianta were mentioned in this context. A previous chairman of the board was from Cork, but it is almost an impossible mission to get one of the Cork staff elected as a worker director. There is need for a quiet word in somebody's ear to say that if possible there should be representation from the three regions on the board of Aer Rianta. I know this cannot be dictated to them.

That Cork business people are required to fly to Dublin to link with Aer Lingus services has been mentioned. In this context it is Aer Lingus we should knock and not Aer Rianta with whom I sympathise. The general manager of Aer Rianta in Cork has made many representations to Aer Lingus to improve its service. We need to pursue Aer Lingus on this matter, on the US service and on the general marketing of the area because it concerns so much more than the staff of the airport. In the context of deregulation, there are small airlines more than willing to operate continental flights at a reasonable fare.

Fare costs have been mentioned and it is an issue Aer Lingus has to sort out. Its offers are out of Dublin and this is not good. If challenged it may be found to be contrary to some regulation, something we can perhaps examine. Aer Lingus should be encouraged to take an even handed approach to its fare structure because Cork is disadvantaged by it at present. It can make a difference for business people and for tourists.

The primary work of Aer Rianta is to promote investment and development at its airports, something we can lose sight of. It is now involved in business world-wide and I commend it for this because there was a need to diversify. This is why I welcome the further deregulation by the Minister which gives Aer Rianta more autonomy.

The Minister is aware that when these companies were established Cork airport was under the Department of Transport. It was labouring because the necessary investment was not present. Any pay back now should be pro rata to what was invested in the airports because Cork did not get the investment it needed to keep up to standard.

The Minister said Aer Rianta expected an announcement shortly from Continental Airlines of the introduction of daily services from Newark commencing next June, one to Shannon and the other to Dublin. This highlights the point I am making, namely, that there is a different approach to the three airports when there should be no difference. They are regional airports of national significance.

In Cork there has been an over reliance on Aer Lingus to provide suitable services. The new regional authority has already met Aer Lingus on a number of occasions and there is a widespread feeling that the airline has never had a true commitment to the development of Cork. This has disadvantaged Cork in comparison to Cork and Shannon.

I congratulate Aer Rianta on its new venture in Cork and I wish it well. I am sure the Minister and everybody else will be supportive. This is the kind of money that can be attracted as international mobile investment but certain criteria are laid down. The IDA supports the idea of people moving into technology parks and so on but if there is not an airport and a reasonable schedule of flights people will not be interested. International business people will not waste time driving to and from Dublin for three or four hours to transact business. If we do not have a well equipped airport and regular schedules we will not get the business that should be available to us.

On the question of the compulsory stop-overs we in Cork took a mixed view and did not object. The compulsory stop-over at Shannon probably benefited the region. However, we did object to the marketing back up of £2.5 million available to them which made the playing pitch so uneven. Some of that problem has been sorted out but I am concerned that ways may be found of providing extra money which will not be available to us.

I reiterate my call to copy the activities of the very effective Shannon-based lobby. We have 20 Deputies in the five Cork constituencies and we must unite to ensure Cork gets a fair deal. In the past there was some faction fighting and we may have lost out. Good luck to those who won their case. Now it is our time. I ask the Minister to ensure that in taking the cash from the company there is sufficient left to plough back in. One of the difficulties in semi-State companies was that they had to give back money and did not have enough for reinvestment or diversification.

Like other speakers, including our spokesperson, Deputy Yates, I welcome the legislation. It reminds me of one of our well known singers, Val Doonican, who said when he made it into the big time that he was an overnight success after 20 years. He had been ploughing his own furrow through the clubs and eventually somebody discovered he was a huge success.

That was before my time.

It has taken 28 years to bring this legislation before the House. The chief executive, Mr. Derek Keogh, who was a higher executive officer in 1969 when he did some work on the preparation on the draft heads of this legislation, is at the point of retiring as he sees that work coming to fruition. Some officials in the Department of Public Enterprise who have waited a long time for this legislation must be pleased it is ready to be enacted into legislation.

I wish the chief executive well in his retirement which will take place before the end of the year. As one who represents the constituency in which Dublin Airport exists he has proven to be an exemplary chief executive and has helped the Aer Rianta company to grow from strength to strength but more importantly to grow with quality. This company is one of the jewels in the crown of semi-State endeavours. I do not think anybody will dispute that. Having listened to the speeches today everyone is in agreement that Aer Rianta is one of the companies of which we are most proud.

The staff too in Aer Rianta have taken an active and personal view of their company. I remind the House of some of the records the company holds as firsts. It was the first State company to introduce constructive participation by the workers which dates back over ten years. This means every section of the workforce has a say in any changes being proposed in work practices, work rules, time, etc. Aer Rianta was the first State company to introduce a crèche in 1984. How many times have we heard other companies talk about introducing a crèche? It was the first State company to introduce an equality officer. Ten years ago I recall discussing with Derek Keogh and other senior staff in Aer Rianta ways in which positive action was being taken to ensure women participated fully in the management structures and young people also got the opportunity to make progress in the company if they showed the necessary promise. It was the first State company to introduce job sharing in any real way. It was the first international airport to start an arts festival. As Minister, Deputy Stagg had the honour of opening one of those arts festivals. This is a week long festival with free entertainment, a free cultural occasion for people not only from north county Dublin but from all over, including the many passengers who can while away some time while awaiting their flight, watching bands, dancers, singers, jugglers and all types of artistic endeavours being carried out. It is a most exciting place to be during the week of the arts festival.

What we have all grown to love about Dublin Airport is that at Christmas time such a huge effort is made to ensure it is attractive. This is such a poignant time when so many of our young people come back to spend Christmas at home with their parents and then have to depart. The festivity within the airport is helpful in making people less sad at that difficult time.

I cannot stress enough how beneficial Aer Rianta and its success has been to so many thousands of people who have worked in the company or depend on people who work in the company and who purchase from or supply services to Aer Rianta. I pay tribute to the company today. It has had great patience in waiting for this legislation to give it the possibility of becoming a fully commercial State body similar to the ESB, Bord Gáis and Aer Lingus.

The growth in the airport is evident from the statistics. In excess of nine million people travelled through Dublin Airport in 1996, there were 59 destinations and 26 scheduled airlines. As the company grows and develops it is heartening that there is no diminution in the service it provides. We may have to walk a little longer on the travelators to get to our gates, due to the expansion of the airport. Even then the management at the airport tries very hard to make life easy for people. They provide minibus services from the car parks. Greencaps, a work scheme for people in the Ballymun area, has been extremely successful in that regard. It helps people to get their luggage to their cars or to other transport services and facilitates the movement of trolleys from the airport. This helps to keep the airport as tidy as possible, having regard to the large volume of people who use it every day.

Aer Rianta has been successful in branching out into the wider world. It secured a contract in Beijing earlier this year and operates the first western-style duty free shop in China. It also has contracts in the international airports of Damascus, Beirut, Kuwait and Moscow. Its efforts know no bounds. It is willing to go as far as possible to offer its expertise. It recently won a contract for the Channel Tunnel. As Aer Rianta takes its rightful place among the commercial semi-State bodies, it will continue to make development part of its name. Duty free shops provide jobs for those working in them and for those supplying the products. They act as a front for the best of Irish food, jewellery, knitwear and clothing.

Duty free sales are under threat in 1999. I am disappointed that in 1992 Ireland did not use its power to prevent the phase out of duty free in 1999. The then Minister for Finance, Deputy Ahern, failed to use his power as a Minister around the Council table to prevent that decision being taken. That has created much cynicism in my constituency, particularly as Fianna Fáil issued leaflets prior to the last election stating it would do its best to restore duty free services, having participated in the decision to abolish them.

The abolition of this service will have adverse effects for Cork, Dublin and Shannon. Approximately 2,000 people earn a living through duty free shops. Their abolition would be the equivalent of closing Clerys, Arnotts and Brown Thomas which employ approximately 2,000 people between them. I am sure there would be an outcry if those stores were shut down.

Those working in duty free shops have no say over this decision. The say will rest with the Commission and the Council of Ministers. At every available opportunity the Government should stress to the Council and the Commission that the decision made in 1992 was crazy and was made at a time when it was proposed to harmonise taxes. As that has not happened, the decision should be overturned as soon as possible so that the companies running duty free shops throughout our European partners can get on with their jobs. When I recently travelled through Stansted Airport the anti-closure group was handing out leaflets and some aeroplanes flying out of Stansted are screened stating "Save our Duty Free".

Approximately £100 million is generated every year in the duty free outlets at our three airports, with a profit of about £26 million to £30 million. If that money is lost to Aer Rianta and a substitution is not found, air travel costs will increase. As a result non-EU destinations will benefit. A high percentage of travel from Ireland is to EU countries, whether to holiday destinations in Spain, Portugal, Italy or France or business traffic between Belgium, France or Germany. Flights to those destinations are full with civil servants every day. It is essential that we protect the cost of travel. If the cost of travel increases it will damage our tourist industry which has been going from strength to strength and creates many valuable jobs. It would be a disaster if, while riding high on the back of the Celtic Tiger, a decision made by the Leader of this Government slowed its progress or even killed it off. That would be regrettable at a time when so many Irish people are benefiting from the prosperity and many others are returning to work here. This debate presents an opportunity to raise this issue and to make sure that there is no doubt in the minds of the Taoiseach or the Ministers, Deputies O'Rourke and McCreevy, that they will be held accountable by Members of the House and by the thousands of people who depend on duty free services for their livelihoods.

I agree with Deputy Yates that the chief executive officer must be a member of the new board. It is extraordinary the legislation does not provide for that when that person is currently a member of the board. During our time in office we ensured that the chief executive officer was a member of the board of any service we set up. Before leaving office we commenced legislation for the courts service, which I hope the Minister, Deputy O'Donoghue, is continuing. Although the courts commission group did not recommend it, the Government decided the chief executive officer should be on the board of the courts service. The chief executive officer should be fully aware of the thinking of the board. It is not enough for that person to be handed down an edict.

In regard to Part III of the Bill the Minister stated:

I think it only fair, on the occasion of the transfer of that property to the company, that this fact be recognised.

I have included a provision in this part of the Bill requiring Aer Rianta to pay for the assets being transferred. The amount in question will be a matter for consideration by myself and the Minister for Finance, but I expect it will reflect the written down value of the property in question.

I have no idea what cost will be levied on Aer Rianta when it has to pay for the assets the Minister is transferring to it. As the company has returned many assets to the State, the charge should be nominal and it should be given the assets to continue its work.

I hope when the Minister responds to this debate she will give us some idea of what she and the Minister for Finance have in mind. I have warm memories of the Department of Finance and it will take what it can get and more from anybody. I hope the company will not be bled and raided for the cost of these assets to the point that would jeopardise its investment plans.

Regarding what Aer Rianta has done, up to 1986 the Government spent £57.1 million on capital investments in the three airports. The written down value of those assets is at present £14.5 million, but Aer Rianta has contributed a total of £207.5 million in cash surrendered to the Exchequer since 1969 and £136.5 million was surrendered since 1987. Since 1987 all new capital expenditure has been funded directly by the company out of its resources totalling a figure of £224.6 million. Capital projects undertaken by Aer Rianta since it started to fund its capital programme include the new runway at Dublin Airport, a major extension to the terminal building at Cork Airport and the extension of the pier at Shannon Airport. Members will know that upcoming projects include pier C terminal west development at Dublin Airport, a 60 per cent extension to the main terminal at Dublin Airport, a new passenger terminal at Shannon and development of freight facilities at Cork Airport. There is a broad sweep of investment planned by Aer Rianta. That is why I want the Minister to assure the House that the avaricious hands of the Department of Finance will not jeopardise any of those developments. It is important we leave this company in a healthy state when it is being turned into a commercial semi-State body because investment of more than £200 million is planned for Dublin, Shannon and Cork airports in the next five years. At present the staff numbers in Aer Rianta are 2,050. Those jobs must be protected and allowed to grow. It is essential that the Minister gets that message.

Section 41 deals with the giving of directions by the Minister to the company. I would like clarification on what that means. The section states that the Minister may give direction in writing to the company, not asking it to consider but requiring it to comply with policy decisions of a general kind made by the Minister in relation to the functions assigned to the company by or under this Act. If the Minister of the day were to take a flight of fancy and require Aer Rianta to close Shannon Airport, according to my reading of this section Aer Rianta would have to comply with that direction, even if it considered it foolhardy in that it would jeopardise development in the Shannon area. The Minister of State, Deputy O'Dea, is smiling as if to say no Minister would do that. I want the Minister when she responds to this debate to clarify what this means. I do not want the Minister to be able to direct Aer Rianta to accept, for example, that a new airport should be built in Baldonnel for passenger services. That would not be a good decision as it would jeopardise the investment made in Dublin Airport. The Minister should not take on those penal powers under section 4l which might jeopardise Aer Rianta. I hope the Minister will be forthcoming about what 41(3) means. It states that the company shall comply with a direction under this section. What does that mean? It could mean anything or nothing and we need clarification on that.

If Deputy Owen had read section 41 properly she would see it provides that the Minister may give a direction in writing to the company requiring it to comply with policy decisions of a general kind. I will pass on to the Minister Deputy Owen's comments and I have no doubt that if there is anything untoward in that section or anything which we do not intend she will be open and amenable to amending it. I note the other points made by Deputies Stagg and Owen concerning the position of the chief executive and whether he should be a member of the board. I also note what Deputy Stagg said about copperfastening the position of worker directors and the other matters mentioned, including how much Aer Rianta will be expected to pay for the acquisition of the assets at written down value.

I congratulate my colleague, the Minister, on her initiative on bringing the Bill before the House. It has been about three decades in gestation and we are all delighted it is before the House today. The principal issue in the Bill is the proposed change in the status of the company from being an agent of the Minister to being a fully fledged State company which owns its own assets. As the Minister for Public Enterprise stated earlier, this will put Aer Rianta on a proper modern footing. The basic philosophy underlying the Bill is to regularise the status of Aer Rianta and from that point of view at least it should command support from all sides of the House.

As Members know, at present Aer Rianta operates and manages the three State-owned airports on an agency basis on behalf of the Minister for Public Enterprise. This means that the Minister owns the airports and Aer Rianta acts on her behalf. The Minister, Deputy O'Rourke, has outlined in some detail the origin of this arrangement. The intention of the Bill is to vest the airport lands in the Minister for Public Enterprise and to issue shares in the company which will be transferred to the Minister for Finance.

A second aspect to the Bill, which is also of vital importance, deals with updating and modernising the controls the Minister exercises over Aer Rianta. It is a separate company in its own right incorporated under the Companies Act. From that point of view the relationship that applies between the Government and Aer Rianta should be the same as that which operates between the Government and other State sponsored bodies. The same controls that apply to commercial State bodies must apply to Aer Rianta. The Bill provides for such controls, particularly in relation to the level of airport charges, borrowing powers, payment of dividends, expanding the range of business activities, compulsory acquisition, appointment of directors and remuneration of the chief executive. Very often these types of controls have been criticised as being overly restrictive and unduly constraining the business initiative of the companies involved. That is not the case, as any objective study will show.

The Government recognises fully that State-sponsored bodies must be assured of freedom from interference in their day to day operations so as to enable them to operate effectively. That is the purpose of establishing State-sponsored bodies in the first instance.

In today's fast moving competitive business environment the ability to react swiftly, to take quick business decisions is a sine qua non to success, but it is equally important to recognise that the Government owes a duty to citizens to monitor and control the operation of State-sponsored bodies as semi-State bodies and there are a number of good reasons for this. First, semi-State bodies are in public ownership. They were established or acquired with taxpayers' money. Their shareholders are the community as a whole. It falls to the sponsoring Minister or Department to represent the interests of the community at the Cabinet table and to be accountable to the Oireachtas for the operation of the semi-State companies. Second, there is a substantial proportion of total national resources under the control of State bodies. Therefore, it is vital that they be used in a way which will contribute to overall national objectives of sustained economic growth, increased employment and wealth creation. The Government decides these priorities and it must direct the commercial State bodies to pursue these objectives. Third, a number of State enterprises enjoy a monopoly or near monopoly in strategic areas of the economy. The Government is obliged to regulate their activities in the public interest in the same way as it would in regard to any other company which enjoyed a monopoly or a substantial amount of control in an important segment of the market.

Some commercial State bodies have a public service obligation and have to undertake activities which might not make commercial sense but have a social and developmental function. The State must ensure those activities are carried out and that the company continues to meet its public service obligations in a cost-effective way for the taxpayers.

The proposals in the Bill regarding public enterprise control are driven by the following laudable objectives: the desire of this Government to see that public moneys invested in State bodies are safeguarded and used to their best effect; to ensure that State bodies conform generally to overall Government policy and to make the public sector operate efficiently and in a way which serves the best interests of the community.

There is no intention to stifle the initiative and the entrepreneurial spirit that has characterised Aer Rianta's approach to its job which has made it the success it is today. That spirit is recognised and valued very highly, especially by those from the mid-west region where Shannon airport is the linchpin in our economy. We appreciate it too much to put it at risk through excessive regulation. What is proposed in the Bill is no more than the minimum which is prudent and wise. It is the minimum required of us as stewards of the public purse.

The close association between Aer Rianta and Shannon airport is well known, especially in the context of the development of the mid-west. This Bill is of particular importance to those who represent the greater Shannon area and have its economic prosperity as their priority. The success of Shannon airport continues to be seen as an important contribution to the economy of the mid-west. The desire of successive Governments to favour balanced regional development has led to different interventionist policies in the different regions. For us in the mid-west, the Shannon stop requirement has been the policy instrument on which the economic success of the region has been largely built.

There was a fundamental change in the Shannon stop policy some years ago in order to save Aer Lingus.

Thanks be to God.

The Deputy is entitled to his opinion but I doubt if Deputy Carey shares it.

I think he might.

I was at various meetings with Deputy Carey at the time and I assure Deputy Broughan he does not.

That is news to people in Finglas.

The same applies to the former Deputy, Dr. Bhamjee, and the few Labour Deputies left in the mid-west, if there are any.

Wait for the Limerick by-election.

The mid-west paid the price to save Aer Lingus. It would be gravely dishonest of me, just because I am in Government, to pretend the decision taken at that time did not have a detrimental effect on the region — it did. Any objective observer will say it has hindered the development of Shannon airport. The situation is not as bad as the worst prophets of doom forecast at the time. Nevertheless the region has paid a price.

I thank successive Ministers and local interests for the aggressive marketing and initiatives they have undertaken since then to preserve the situation in the best way possible. However, the position is delicately balanced and any further dilution of the Shannon stop policy would shatter the fragile confidence which has been painfully re-established and have devastating economic implications for the mid-western economy and consequently the country. Any diminution would not only encounter the opposition of those at the coalface — tourism and business interests — but also the entire mid-western community and the public representatives they have chosen to represent them, of whom I am proud to count myself one. Deputy Carey is another.

The EU-United States multilateral negotiations which commenced last year are expected to result in the creation of a common aviation area spanning the two largest trading blocs in the world. These negotiations are at an early stage and have run into difficulty, particularly because of the understandable desire of various member states to protect their own interests, including regional ones.

It is true that if an agreement is reached, Ireland cannot stand aside. We are the most open economy in Europe and must be in a position to do business with both sides in whatever trading arrangement emerges. The latest report is that the French Government see the negotiations concluding in nine years' time. They are at an early stage and there is no compulsion on us to discuss the Shannon stop policy in the context of ultimate agreement.

If agreement is reached, traffic rights may be on the agenda. However, under whatever regulatory environment is proposed for the future, we should seek an expansion in the number of links between Shannon and the United States as the bottleneck is limiting and adversely affecting the number of American tourists coming to the mid-west. At present, Irish airlines are confined to flying to New York, Boston, Chicago and Los Angeles. Over 50 per cent of US visitors to Ireland arrive via UK or European points. Many of these visitors could be attracted to the idea of starting their European visit in Shannon rather than having to backtrack to Ireland after landing in London or Paris.

The key to exploiting these new opportunities is the marketing of Shannon airport to the travel trade overseas and to airlines. Highly focused, direct marketing is particularly needed at this time to counter the opportunities for US airlines to start new services into the UK and continental European cities under their existing bilateral open skies agreements. Aer Rianta has, in the past year, been given responsibility for the marketing of the airport. The Bill copperfastens that role by citing as a principal objective of the company the taking of all measures for, inter alia, the marketing and development of its airports.

The company has expertise and experience in marketing all the State airports. At Shannon, it is ably assisted by a consultative committee which is drawn from local tourism interests. The committee has an important role in advising Aer Rianta to ensure that whatever moneys are allocated by the company to marketing Shannon airport are used effectively. I am confident the committee can be relied on to do so.

The Bill also sets out, as an objective of the company, to provide such facilities at airports for aircraft, passengers, cargo and mail as it considers necessary. Air cargo has become the Cinderella of the air transport business. However, although air freight currently accounts for about 1 per cent in volume of cargo exported from Ireland, it accounts for 18 per cent in value. Almost one fifth of the total value of air transport is due to freight. The original concept of the Shannon customs free area was built around the idea of air freight. This is an idea we must now revisit. It makes sense that air transport of high value goods be fostered.

The growth of the computer industry makes air freight access an important marketing advantage. The ability to access markets speedily and easily and to ensure timely delivery of goods is a modern business requirement.

Transport of goods by air parallels, in many aspects, the advances in the field of communications. Air transport gives business the degree of responsiveness vital for survival and growth. In relation to duty free sales, the House will know that an agreement made in 1992——

——when the Taoiseach was Minister for Finance and sold us out.

The Minister, without interruption, please.

——is due to finish in 1999. I congratulate Deputy O'Rourke and Aer Rianta on the campaign they have initiated in this regard. Forty one per cent of sales in Shannon Airport are EU-related. That airport is less reliant on duty free sales than Dublin or Cork where I understand the position is very serious. Nevertheless, 41 per cent is a substantial figure. Incidentally, I want to compliment Aer Rianta on the measures they are taking in anticipation of the abolition possibly occurring in 1999. They have started to manage other duty free areas and airports in non-EU countries and have increased the level of non-duty free sales. Nevertheless, it would be catastrophic if duty free was abolished or not, at the very minimum, deferred in 1999. The revenue generated by duty free sales helps to keep airport charges down thereby reducing the costs of access to airports. From the point of view of Ireland's dependence on tourism that is of vital importance.

This Bill is a necessary measure to enable Aer Rianta to operate as a commercial semi-State body in the modern business world. What is proposed is good for Aer Rianta and good for Shannon. This House should progress this legislation as quickly as possible in order to bring the control and management of the civil airports of this State into an effective modern framework to serve a modern economy. For those reasons I commend the Bill to the House without hesitation.

It is extraordinary to witness the crocodile tears of a Fianna Fáil Minister, a Minister led by a Taoiseach who, when he was Minister for Finance in 1992, went to Brussels with a clear directive from this Dáil to fight, fight and fight again for the duty free sales of our national airports company. The Taoiseach, Deputy Ahern, let us down on that occasion and did not defend Ireland's case. The primary responsibility which an Irish Minister has — and which a Taoiseach certainly has — is to defend this country's interests. The Taoiseach, Deputy Ahern, did not do so in 1992; he sold us out in relation to duty free. That is the reality. We now find ourselves, five years later, desperately trying to undo his mistake. The Minister for Finance, Deputy McCreevy, is trying to pick up the pieces smashed to bits by Deputy Ahern in 1992. We are faced with a catastrophic situation whereby our national airports company, half of whose profits derive from duty free, is in an incredibly difficult situation due to the incompetence of the Fianna Fáil Government in 1992.

Was the Deputy one of the men in the hangar? He was almost hanged himself and lost one of his colleagues.

Yes, I was one of the men in the hangar. I lived up to my promises, walked up that gangway and voted against the partnership Government. Former Deputy Seán Ryan — who will shortly be back in this House — and I both voted against the Government on the Aer Lingus issue. We have a very proud record.

Mr. Gogarty did not let you down.

Deputy Broughan should be allowed to continue without interruption.

I do not know how Mr. Gogarty is relevant to this discussion. Jim Gogarty will have his day in court in the coming months. We will return to that issue when we are talking about the land issue in Dublin Airport at a later date.

The Deputy should be proud of himself.

I welcome the Bill in so far as it will, at long last, give basic semi-State status to Aer Rianta. Since 1966 this semi-State company has done us proud. The 3,000 or so workers employed by it have expanded business sales across Europe, Asia and many other places. They deserve enormous credit for that. They have also run the three State airports with efficiency and distinction during that period. While the State has only funded Aer Rianta to the extent of approximately £57 million, it has returned profits of more than £200 million to us. We should salute the workers and the management of Aer Rianta for their tremendous achievement.

In the north Dublin region which I am proud to represent Dublin Airport and all its companies — Aer Lingus, TEAM Aer Lingus and Aer Rianta itself — represent the very fulcrum of our economic well-being. More than 8,000 workers are engaged in a wide variety of activities in the airport, principally in bringing tourists and business people in and out of this country. The airport provided a lifesaver for the whole northside of Dublin — which is perhaps one of the most deprived areas in the country — over the past decades. We are very proud of all of the work which has been achieved there.

We are glad that Aer Rianta is associated with NORDUBCO which my colleague on the Fianna Fáil benches, Deputy Carey, is also involved with. The major partnership companies of the northside area led by the Ballymun, Finglas and Northside partnerships work together in close liaison with Aer Rianta to provide additional jobs directed at the most deprived sections of our community and at the long-term unemployed. I salute Dublin Airport and its workers — specifically the Aer Rianta workers — for their great achievements over the past three or four decades.

The Minister of State, Deputy O'Dea referred to the Shannon stopover. Since Dublin Airport was released from this straitjacket, the staff there have brought the airport close on the heels of Manchester airport. It was our ambition that, after London, Dublin Airport should be the major international hub of these islands. The Aer Rianta staff in Dublin have pursued that goal relentlessly over the past three or four years and we are now hot on Manchester's heels, our major rival in aviation terms. We will surpass Manchester if the proper land planning and supports are given to Aer Rianta over the coming years. If one compares the territory Dublin Airport has in comparison to an airport like Stockholm, one can see the great necessity for major land holdings to be made available for airport development. I am glad that the Minister for Public Enterprise, Deputy O'Rourke, has recognised this in relation to Dublin. The same probably applies to Shannon and Cork airports also. We need that kind of freedom.

The attempt to smother Aer Lingus's and Aer Rianta's development in a rezoning move to the south-east was utterly obnoxious and detrimental and could only have been intended to enrich the pockets of private individuals at the cost of Dublin Airport's and Aer Rianta's development. That went against the public interest. I see no merit in allowing a second terminal to be developed by any private interests. I share Deputy Stagg's fears that sections of this Bill may be used by the Progressive Democrats, in particular, to try to influence Fianna Fáil to allow privatisation of Aer Rianta. If any such attempt were made, it would be bitterly opposed by the Labour Party. Aer Rianta needs the fullest flexibility in the territory around Dublin Airport. I welcome the fact that the Bill will give control of assets and the powers of a commercial semi-State body to Aer Rianta and enable it to develop in a normal way with the normal kind of freedoms which will enable it to continue its successful contribution to our economy.

On the question of duty free sales, this House has to use all its resources to try to claw back the failures of the past four or five years. In particular the Taoiseach has to try to remedy the grave error he made five years ago when he made no serious attempt in Brussels to prevent damage to Aer Rianta and to the country generally. Almost half of Aer Rianta's profits derive from the duty free area which provides a critical part of the income of the companies concerned, not just Aer Lingus, the public company.

I welcome the general tenor of the Bill in terms of the extra freedoms of directors and staff. I referred briefly to terminal development and to the attempts to restrict Aer Rianta's freedom of action in the general territory of the airport. On the Ballymun-Coolock side and on the Swords side residential development has probably approached as closely as it can. In the context of Dublin Airport we have to keep the territory of the flight path as easily accessible as possible for safety reasons and general airport development.

On section 10, I am worried by the powers the Minister will have in relation to the future development of the company and the selling of shares. It might be possible under this Bill for the Minister to simply announce in the House that he was selling a portion or majority control of Aer Rianta to a private concern. That is something the Labour Party will bitterly oppose because, given the track record of the company, there is no justification for it and it cannot be supported in relation to the general development of this part of the economy.

Another area where the Fianna Fáil Minister has reneged on promises relates to the appointment of worker directors. Some of the basic provisions of the 1977 Act are fulfilled here but there is a real fear that major subsidiaries which may end up running Cork, Shannon or even Dublin Airport would not have the facility of worker directors. In the semi-State bodies we had to fight over many decades to give the large workforce in these bodies some say in the administration and direction of their companies. In this Bill, the pass is again being sold by the Fianna Fáil-Progressive

Democrats coalition and the way is left open for the privatisation of subsidiaries without reference to this House by the total failure to have the workers and staff represented. That is something we will try to amend in committee, but I would like the Minister to look again at the matter, particularly in view of the commitments that have been made.

During the general election many of us spent a great deal of time interacting with shop stewards and the trade union leadership of the workers of Telecom Éireann, particularly in relation to the employee share ownership project in that company. Fianna Fáil, Fine Gael and the Progressive Democrats, the three conservative parties, are bitterly opposed to the whole concept of employee share ownership, despite the fact that in many countries, including the most capitalist economy of all, the United States, some of the greatest companies are employee owned. When one speaks to the steward on American Airlines one is talking to one of the owners of that very successful and efficient company. A whole range of companies across the United States is very successfully owned by employees and they have had a long and successful history. By the refusal in this Bill to countenance employee participation or to give any consideration to the proposals relating to the Telecom Éireann workers, once again the capitalist, greedy face of Fianna Fáil and the Progressive Democrats is revealed, as it is in relation to Fine Gael — during the general election there was an unofficial consensus between Fianna Fáil and Fine Gael. I do not know why the two large parties do not form a Government and have done with it because they represent the same economic views in relation to employee participation. In the negotiations in which I was deeply involved, there was antagonism from the Minister at the time, Deputy Dukes, from Fianna Fáil and from the Progressive Democrats. The only major party in this House that is remotely interested in pursuing the ideal of employee participation is the Labour Party.

I look forward to Fianna Fáil not doing another U-turn. The media are currently interested in how many U-turns Fianna Fáil has done since 6 June. The count at the moment is five major U-turns. We will be coming back to one of them relating to Sellafield in half an hour. The whole area of employee participation represents another U-turn. There was yet another U-turn in relation to the minimum wage, a refusal to live up to promises that were made in the election campaign that concluded on 6 June. In relation to trade union recognition, the trade unions were told that certain things would happen, but they are not happening. As we heard last week at the SIPTU conference in Ennis, there will be no further national agreements unless workers and their representatives get their fair share of the national cake that is expanding by 8 per cent or 10 per cent per annum. Speaking as one of their representatives, we want our fair share, and we will have our fair share, no matter what it takes. Fianna Fáil representatives should remember the promises they made particularly to Telecom and CIE workers. In this Bill they have once again sold out in relation to the workers of Aer Rianta. That is something we will also approach when tabling amendments on Committee Stage.

I also share the fears expressed by Deputy Stagg about the possibility that, because of the extensive powers given to her under this Bill, the Minister might pull out cash from Aer Rianta and dilute the asset base of the company as happened over the years to Telecom Éireann, despite the large loans it has had. Esat Digifone seems to have great friends in Fianna Fáil and in Fine Gael. There is a worry that the Minister could pull out moneys that are needed to fund the £200 million programme and the expansion of Aer Rianta in the years ahead.

I generally support the proposal by Deputy Yates regarding the chief executive. It is useful for any chief executive to be on a board in order to monitor developments and set the tone and direction of a company.

In general terms I welcome the Bill. I congratulate the management and staff of Aer Rianta on their wonderful achievements over the past three or four decades. I warn Fianna Fáil in relation to the matters to which I have alluded this evening, particularly the question of appointing worker directors, employee participation, the possibility of utilising this Bill for outright privatisation and the general attempt to put restrictions on the development of this very successful semi-State body, that they will be facing a very vigilant and determined Labour Party.

Deputy Broughan, a person for whom I have a high regard and respect, appears to be suffering from political amnesia. His party was in Government with Fianna Fáil between l992 and l994. It is claiming credit for everything that Government did right while Fianna Fáil is being blamed for everything that went wrong. How then is the agreement with TEAM Aer Lingus coming off the rails? The Taoiseach and the Minister for Public Enterprise are involved in seeking a solution.

I remind Deputy Broughan that it was Fianna Fáil which pioneered the concept behind ESSOP and that it was the Taoiseach, when Minister for Labour, who extended the body of labour law. Deputy Broughan mentioned worker directors. Some of the partnerships with which his party was involved during the past 20 years did not crown themselves in glory when it came to worker participation.

On Sellafield, I am not sure what Deputy Stagg did when he had responsibility for this matter——

He stopped NIREX.

Why are people along the east coast seeking the assistance of the Government which is being given freely?

I welcome this worthwhile Bill and compliment the Minister on its introduction. The last significant legislation dealing with this matter was brought forward by the Minister's late brother 30 years ago. I support the provisions of the Bill dealing with worker directors. The Minister will however have to provide for the disposal of assets.

Aer Rianta plays a significant role in the economic life of the east coast region. As Deputy Broughan and others said, it has been pro-active and is to be admired for the way it has co-operated with the industrial and commercial sector. It has worked with the partnership companies, the chambers of commerce and the big new industries on the north side of the city and facilitated the creation of employment within Dublin Airport. With the Ballymun partnership it has established the Green Caps company which provides a trolley service at the airport. In the duty free area it has provided a showcase on favourable terms for small entrepreneurs to display their wares such as cheeses, crystal, clothing, designs and other high quality products.

On the thorny issue of duty free sales, insufficient consideration was given to the social and economic implications before the decision to abolish them was made in l991. This decision should be reversed in the interests of the economic well being of the community.

The impact of the abolition of duty free sales to 2005 was addressed in a recent report by Cranfield University. It states that a number of the sample airports will no longer be able to fund their investment programmes from internal sources and that some airports will become lossmaking at current airport charges levels. To offset the fall in profitability, airport charges will have to be increased by between 20 per cent and 40 per cent if airports are to be able to finance their continuing expansion from internal sources. In an extreme case an airport may have to double its charges if the increase is applied to intra-EU flights only. None of us wants to see huge increases in landing charges. It is possible that some airlines will decide to take their business elsewhere.

Passengers stated that if duty free sales were abolished their purchases would drop, leading to a fall in liquor sales of between 71 per cent and 85 per cent. As a non smoker, I have no sympathy for the tobacco smoking lobby and could not care less how low tobacco sales fall but I understand that sales could drop by between 63 per cent and 89 per cent and perfume sales by between 61 per cent and 83 per cent. It will come as no surprise therefore that I oppose the proposal that intra-EU duty free sales should be abolished from l999. This proposal is based on the principle that in a single market duty free sales should not be permitted. The relentless pursuit of the principle of a single community should not be allowed to impinge on successful business practice. A blinded bureaucracy should not badger business.

Aer Rianta estimates that the loss of duty free sales would have cost it £25 million in profits foregone in l996. I represent the constituency of Dublin North-West which encompasses the areas of Finglas, Ballymun and Santry in which thousands of Aer Rianta and Aer Lingus employees live. I shudder to think of the consequences, economic and social, if this proposal is implemented.

Dublin City University, in co-operation with the partnership companies and the chambers of commerce, is seeking to ensure the economic well-being of the east coast region. There has been much talk about the North-South economic corridor. Nothing will be possible if the vital hub of Dublin Airport is not allowed to thrive and develop. In not opposing the proposal that duty free sales should be abolished we would be sending the signal that there is no point in providing a rail link to Dublin Airport. Despite what Deputy Broughan said, around Dublin Airport there is a large land bank, comprising some 66.5 acres, including a technology campus, which to be perfectly fair to the outgoing Government and former Minister for Finance, Deputy Quinn, was deemed to be a tax incentive area and available to attract a significant employer. Therefore Dublin Airport needs to thrive and Aer Rianta needs it.

Intra-EU duty free sales account for almost 80 per cent of our total duty free sales, abolition of which would undoubtedly result in a significant increase in operator charges and fares. I caution against any attempt on the part of any Minister in any Government to devise a mechanism for increased charges as a method of clawing back some of the company's assets when in a profitmaking position.

Increased operator fares would have a devastating effect, first on international trade and, second, on tourism. With regard to international trade I must remind the House that more than 70 per cent of our merchandise and exports go to European Union markets and — it can almost become a mantra — that ours is the only EU member state without a land bridge to the Continent. The sooner we realise we are a peripheral country on the western limits of Europe the better. Despite projects like INTERREG which benefits those of us in Dublin and North Wales, we remain at a significant disadvantage with regard to economic development and international trade. Increased operator charges would directly affect the cost of exporting our produce to our main markets. I would argue that it could be construed as anti-competitive because contrary to our will, costs of entry to the European marketplace for our products would inevitably increase. Whereas other EU exporting states can switch to road and rail if shipping or air freight prices increase, in the absence of a land bridge to the Continent our exporters do not have the same choice, which is inequitable and unfair.

The abolition of intra-European Union duty free sales would reverse the recent welcome reductions in access fares which have contributed enormously to the inward movement of tourists here. Today I received a brochure, as no doubt did other Members, from Dublin Tourism highlighting the fact that in 1992 there were of the order of 1.55 million visitors to the Dublin region, which figure had risen in 1996 to in excess of 2.25 million. Anybody living here or visiting this city will realise its vibrance if only through listening to the multi-lingual tourists on our streets. Without the low airfares policy being promoted with the assistance of the airlines and Aer Rianta, we would not benefit from that year round tourism trade so important to our economy and of benefit to all sections of our community. It will readily be appreciated that any increase in fares would reduce if not reverse that growth, in addition to diminishing the buoyancy of our Exchequer's substantial tax take from foreign visitors. A reduction in numbers of tourists means a corresponding reduction in passenger numbers, thus compounding airline and airport difficulties.

While our general economic climate is very healthy, our very high rate of unemployment remains our greatest concern. Since tourism is a labour-intensive industry we must vigorously oppose any European Union-enforced proposal which would have a negative effect on this already very serious position. On the one hand the Commissioner for Social Affairs, Mr. Pádraig Flynn, a former Member of this House, tells us how innovative our economies need to be to cater for the employment needs of our growing population while, on the other, another EU Commissioner tells us we must close off this perceived loophole of duty free sales or tax avoidance.

Proponents of the abolition of duty free sales argue that, while revenue from sales is lost to airports, airlines, ferry operators and so on, the Exchequer gains from the duty on sales previously foregone. I believe that to be a very weak argument. It would be fair to say that a very large proportion of duty free sales, are extra sales not merely a substitution for normal high street sales, a fact confirmed by most of the research undertaken on this matter. There can also arise the anomalous, quite ludicrous position in which passengers travelling to non-EU countries passing through duty free shops could shop there freely while ours and other EU citizens would be precluded.

My constituency of Dublin North-West is dependent on a healthy, vibrant Dublin Airport to generate direct employment within its confines in addition to indirect employment through the development of the surrounding infrastructure. I cannot over-emphasise the need to provide for the longer term expansion of that airport. I am one of those who believes that Aer Rianta is the appropriate vehicle for that development because sooner rather than later we shall have to confront the issue of a second terminal at Dublin Airport, which Aer Rianta is best equipped to provide. I must cite the "Green Caps" co-operative development between the Ballymun partnership and Aer Rianta.

I cannot support any EU proposal that would commercially harm a successful entity. Being committed Europeans does not mean we should blindly accept what I regard to be a fundamentally flawed proposal. I must reiterate that, as the only EU member state without a land bridge to the Continent, we should seek exemption from this proposal to abolish duty free sales on intra-European Union travel from 1999 onwards.

Judging by some briefing information I have to hand, some significant if not startling facts need to be emphasised — such as that duty free shopping directly generates approximately 140,000 wealth-producing jobs within the European Union and almost 2,000 here. They play a major role in keeping down the cost of air and sea travel, without which airport charges could increase by as much as 50 per cent — while that may be an exaggeration, a significant increase is likely — with ticket prices rising for all travellers, including visitors here, with low cost airlines most seriously affected.

If duty free shopping is abolished within the European Union the cost of travel here will inevitably increase, thus seriously threatening the current successful drive to develop our tourism industry employing over 100,000 people, and non-EU destination states will have a price advantage. One does not need to be an economic guru to realise that fact.

Revenue from duty and tax free sales supports investment by airports and ferry companies in new infrastructures, vessels and facilities. We are told Aer Rianta will need to invest £200 million over ensuing years. Even within the restricted environment in which the company must operate, we can already witness the great expansion that has taken place at Dublin, Cork and Shannon airports. Because the majority of traffic at the EU's airports is intra-European, those airports will be hardest hit by the loss of duty and tax free sales and could well lose many of their airline routes through having to increase airport charges. This may well pose a threat although I am not certain it is as strong as it sounds.

Duty and tax free shops provide a first class international showcase for quality Irish products. How often does one pass through a duty free shop and see Irish art and craftsmanship displayed in the best possible position? It would be a shame if that showcase were no longer in existence.

The Deputy's leader voted to have it abolished by 1999.

The Deputy, without interruption.

As I already said, in the absence of Deputy Stagg——

I was listening to the Deputy.

——one wonders whether anything was done about that issue in the past five years.

Nothing can be done about it.

Deputy Stagg, allow Deputy Carey to conclude.

The Deputy is running around like a headless chicken. His party did the act and he is now regretting it. I am sick listening to the Deputy crying about what was done in the past. His own leader is responsible, nobody else.

I do not want to revisit the points I made earlier.

I am sorry for the Minister who has to carry the can.

If Deputy Stagg had been as energetic when he was a Minister of State in the last Government as he has been——

I was just as energetic but there was nothing I could do about this problem.

I ask Deputy Carey to conclude as his time is exhausted.

I commend the Minister on bringing in the Bill which is a significant development in aviation legislation. It is a pity it was not introduced earlier but I commend her on this important initiative.

I wish to share my time with Deputy Donal Carey.

Is that agreed? Agreed.

I welcome the opportunity to speak on the Bill, the purpose of which is to allow Aer Rianta act as a commercial semi-State company and be competitive for the future. The Bill is necessary in that regard. Despite the constraints previously placed on Aer Rianta, it has shown great foresight in the development and management of our airports and other subsidiaries such as hotels and airport duty free shops around the world. The excellent development at Dublin and Shannon Airports over the past number of years, with which I am familiar, is a credit to the management and staff of Aer Rianta.

Being a Member of the Oireachtas can be educational because I was unaware that the Taoiseach was responsible for agreeing to the EU directive to——

He had a veto at the ECOFIN meeting but he did not use it.

Deputy Stagg should allow Deputy Reynolds to make his contribution.

I appreciate the assistance. I suggest the Fianna Fáil and Progressive Democrats Deputies who are concerned about this issue should cajole the Taoiseach to ensure his Minister, who is currently in Brussels trying to solve the problem, succeeds in that respect.

It is a hopeless case.

If it is a hopeless case, as Deputy Stagg suggests, enormous difficulties will be experienced here, particularly in regard to jobs that might be lost as a result of abolishing duty free sales.

The EU directive to abolish duty free sales will have an enormous effect on the financial well-being of Aer Rianta and, more importantly, on the large number of staff employed in duty free sales. It is imperative that the Government uses every option open to it to veto the EU directive on duty free. In her Second Stage contribution the Minister said that the programme for Government includes resistance to the EU plans to abolish duty free shopping after June 1999 as a key priority under the transport heading. I hope she does not change her mind in that regard. She has already changed her mind on Sellafield and her other ministerial colleagues, the Minister for Health and Children and the Minister for Finance, have foregone what is stated in the Fianna Fáil-Progressive Democrats programme for Government. I know my former colleague in the Seanad, Deputy Wright, will ensure that the Minister does not change her policy on duty free shopping, although he will have a difficult task. The decision has been taken and it will be extremely difficult to have it changed.

One effect of the abolition of duty free shopping is that Aer Rianta will probably decide to increase ground charges for planes flying to their airports. Deputy Pat Carey indicated that charges could increase by 50 per cent. That would have a detrimental effect on low cost airlines coming into the country. Air fares have been dramatically reduced between Europe and Dublin and between Britain and Dublin but if ground charges were dramatically increased, airlines would be forced to charge higher prices resulting in a detrimental effect on business and tourism interests here.

It is said that all politics is local and the Deputies who contributed to this debate live close to Dublin, Shannon or Cork Airports. There is a small regional airport in my own constituency in Strandhill in Sligo. The management and airport committee of Sligo Airport and many other airports have played a significant role in the past number of years in increasing passenger numbers to regional airports. However, they have not been given adequate incentives to develop regional airports in a proper way. That issue should be given favourable consideration over the coming year. There is only one flight in and out of Sligo Airport, for example, which makes it difficult for people wanting to make connecting flights from Dublin to Europe. If a second service were in operation it would greatly increase tourist numbers and encourage much needed industrial development in the area. Aer Rianta has a major role to play in the development of regional airports which has not been referred to in the Bill, and I ask the Minister to give some consideration to this.

This Bill is necessary as it will enhance the way airports are developed. Cork, Dublin and Shannon Airports should benefit greatly from making Aer Rianta a semi-State body. I compliment the management and staff of Aer Rianta for the work they have done over the past 30 years. If they are given a freer hand, I am sure they will be more progressive in the future.

Deputy Patrick Carey spoke well on behalf of his constituents in Dublin North East and I compliment him on that, although I did not agree with all he said. He forgot to mention the action of the then Minister for Finance, Deputy Bertie Ahern, on duty free but I will go into that later.

Aer Rianta deserves our support in its transition. It is proper that this power be given to it because it has had an uneasy relationship with the Department of Finance over the years. Additional funds were not provided on occasions when Aer Rianta was most in need of them. I refer in particular to the time the change was made in the stopover at Shannon Airport. In that year, the then Minister for Finance, Deputy Bertie Ahern, drew down much more funds from Aer Rianta than was necessary, funds that were needed for the development of Shannon Airport, which was delayed. We badly needed a vote of confidence at that time.

In addition to the great conglomerate which is Dublin Airport, Aer Rianta has roots in the country at Shannon and Cork. This company mirrors some of the economic and social difficulties we experience as a nation. As a result of great expansion Dublin airport is choked with traffic, while it is very easy to gain access to the international airport at Shannon. I am glad the Minister of State, Deputy Ó Cuív, is present in the House as he represents a western constituency. The structural development programme sent to Brussels by the then Minister for Finance, Deputy Bertie Ahern, neglected to include a western corridor which would have provided easy access to Shannon airport and the airports in Kerry and Galway. A six or seven mile tailback of traffic into Newmarket-on-Fergus and Clarecastle reduces the attractiveness of the area not only to tourists but also to industrialists.

Shannon Airport plays a very important economic and social role in the midwest and west. The Minister of State, Deputy O'Dea, confined his remarks on Shannon Airport to the midwest. However, it should be remembered that the airport is very important to the entire western sea board. Shannon Airport was an experiment in decentralisation which we fully supported. Deputy O'Flynn referred to the statements about rabbits on the runway at Shannon Airport. Fianna Fáil used to remind its members of this statement at election time and warn that all the advantages of the airport would be lost if any other party was elected to office. However, it was a Fianna Fáil Minister, Deputy Cowen, who ruthlessly did away with the Shannon stop-over.

The previous Government did nothing to restore it during the past two years.

International agreements were drawn up and I am sure the Minister would want us to honour them. I am not cribbing about that decision but I am concerned about the lack of long-term planning by the then Government in regard to problems which might arise after these structures are taken away. The previous Government made a capital investment of £15 million in Shannon Airport, the first time this was done for more than 20 years.

I am not making political points but rather am trying to ensure a unified interest in the west. I presume the Minister of State who represents a western constituency has an interest in the west and has read in local newspapers the views of hoteliers about the tourism figures for the west this year and the number of continental tourists who used Dublin Airport which offers cheaper fares. Fianna Fáil Deputies boasted about the cheaper fares for passengers flying into Dublin Airport. However, there are no cheap fares for passengers flying into Shannon and Cork airports. Galway airport, which is owned by a private company, also needs to be developed further if it is to attract industry. Yet the Government is neglecting these airports.

When the Taoiseach was making his ministerial appointments he conveniently ignored the people of the west. He took the Western Commission out of his Department and parked it in the Department of the Environment and Local Government for a few weeks. However, the Minister, Deputy Dempsey, did not want it and he sent it to the Minister for Agriculture and Food, Deputy Walsh. I now hear that the Minister of State, Deputy Davern, who comes from south Tipperary is looking after matters in the west. The Taoiseach thinks that the difficulties in the west relate only to agriculture.

When we have finished our term in office we will have done more for the west than the Deputy's party did.

The Deputy in possession without interruption.

I love to hear the Minister of State boast about what he will do for the west as I have in my possession the long list of promises he made prior to the general election.

I will honour them.

We will get an idea next Thursday at Question Time about what he intends to do and the progress he has made.

I am concerned about the powers being given to the Department of Finance. I do not understand what section 41 is about. Why does the Minister want to have these powers? Surely the chief executive and the Minister's representative on the board will look after matters. The Bill should provide that Shannon and Cork airports are also represented on the board of directors of Aer Rianta. This was not always the case as appointments depended on who was in power. In some cases the selection process left much to be desired and many of the people appointed had no real expertise.

People in the west believe everything is being done to develop Dublin. While one may regard a seven or eight mile tailback of traffic in the west as a sign that the economy is doing well, it is not right or good for the area or industry. I recently received a letter from the Minister for the Environment and Local Government, Deputy Dempsey, in which he said I should address inquiries about national roads to the National Roads Authority, not his Department. However, he neglected to say that he and his Department formulated the criteria on which national road developments may go ahead. It is Fianna Fáil interests who are preventing Newmarket-on-Fergus, Clarecastle and Ennis being by-passed. This lack of road development means that Shannon airport will not be able to compete with other airports. Deputies Dennehy and O'Flynn are confident that Cork airport will be expanded. If international flights use the airport it will create further competition for Shannon Airport. Even though the then Minister, Deputy Cowen, sold Shannon airport down the river, it fought back and had record growth in 1996-7. If there is further competition the airport will continue this fight.

There is apprehension in regard to Shannon and the mid-west and positive political decisions are required. I am glad the Minister for Public Enterprise, Deputy O'Rourke, has intervened to retain duty free sales. The Taoiseach did not put forward opposition at the Council meeting to the ending of duty free sales. While the Minister, Deputy O'Rourke, went to Brussels to make representation to the Commission, the Minister for Finance, Deputy McCreevy, has yet to issue a statement of support for the permanent retention of duty free sales. Such a statement should be demanded of him.

Aer Rianta employees are model employees. On the industrial relations front, they have behaved in a positive way and there have been very few breakdowns in industrial relations. The development of Aer Rianta in Shannon ensured an increase in wages, providing for the same level of wages in Shannon as in Dublin Airport. There is a necessity to make solid decisions for the future of Aer Rianta. I await with interest the reaction of the Minister for Public Enterprise, Deputy O'Rourke, to the existing problems. Some of her Fianna Fáil predecessors sat on their hands and made no firm decisions on Shannon Airport. I hope that does not happen in this instance.

I welcome the Bill and commend the Minister on bringing it before the House. I had the opportunity today to speak to the chief executive of Aer Rianta who said it is 30 years since he was involved in the heads of the Bill. It is a very important day for the board, management and staff of Aer Rianta that we are discussing the Air Navigation and Transport (Amendment) Bill, 1997. The history of the Bill goes back over many ministries, joint Oireachtas committees and so on. Deputy Donal Carey gave his view on the problems facing Shannon and I will give my view on Aer Rianta's management of Dublin Airport since I came to public life in 1985.

Part of the objective of the Bill is to officially put Aer Rianta on a semi-State footing. The staff, management and board of Aer Rianta have been very professional in their work, and the annual reports of the company are evidence of that. As a politician, I am happy to speak about Dublin Airport, an integral part of the constituency of Dublin North. Aer Rianta has been successful in terms of profits, marketing its airports at Dublin, Cork and Shannon and the relationship between management, staff and board. It is an example for other companies. There are many reports to confirm those comments.

I wish to cite the 1996 annual report of the chief executive who stated that the company continues to place major emphasis on its core values of excellence, consumer service, humanisation of the airports' ambience and open management systems, including a commitment to equal opportunities. I reiterate that has been my experience of Aer Rianta in the past 12 years. We are all aware of semi-State bodies that approach the Minister of the day on a monthly basis seeking subvention for capital investment, but since 1987 Aer Rianta has handed over to the Government cash from profits to the tune of £135 million. It funded its total capital programme over the years. It spent £225 million of its own resources to bring the airports at Shannon, Dublin and Cork up to the highest standard and intends to spend a further £200 million in the next five years to ensure the facilities warranted by an international airport are available to its passengers.

Deputy Pat Carey referred to the possibility in the past year of opening a second airport in Dublin. Those of us committed to the north side of Dublin have our own views on that. It is vitally important we continue to invest in Dublin Airport at Collinstown to ensure we have an international airport of the highest standard for national and international passengers. The decision of the Government not to support the idea of a second airport was the right one, as will be proven in time. At present ten million passengers are catered for at Dublin Airport and future investment will ensure 14 million passengers can be catered for.

In the chief executive's report he states that Aer Rianta operates on a partnership basis in dealing with all matters which affect the company. He said that constructive participation will underpin its success in the future and provide the company with the basis for implementing such an approach.

TEAM Aer Lingus experienced great difficulties in 1992. I had the opportunity to speak in the Seanad on 5 November 1992 when I was one of the first politicians to recommend, as part of a restructuring programme, an employee shareholding option scheme.

Debate adjourned.
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