I mentioned previously that I spoke in the Seanad in 1992 about the crisis then facing TEAM Aer Lingus and the airport in general. I mentioned that I believed employee share option schemes should be part of any restructuring programme. I am pleased that this is part of the restructuring programme and the employee share participation scheme has been a great success in Aer Lingus. This should be included in Part 2 of the Bill. The report of Aer Rianta's chief executive stated:
We believe that the involvement of staff and management on a partnership basis in all matters which affect the company is the right way to go and one which will underpin the success of the future.
I agree with this statement and I hope that when the Minister replies on Second Stage she will consider the possibility of incorporating an employee shareholding scheme. If not, I hope it will be contained in a future Bill. This would be a natural extension of the company's success story.
Duty free sales have been an integral part of Aer Rianta's success. I commend the Minister's efforts in bringing this issue to the forefront of future decision making. The removal of duty free sales would have a devastating effect on the company's profits and, more importantly, on jobs and investment. Throughout Europe, 140,000 people are involved in duty free sales; 1,500 of these are in this country. Many of our major companies and best products have achieved success through marketing at duty free outlets. The Minister should continue her efforts. She has the support of all Members who want to see jobs created.
Duty free sales have ensured a price structure in air travel. Aer Rianta has not increased airport charges since 1987. Many airlines offer cheap fares and this has ensured the development of our tourism industry. I have yet to see any country which is opposed to duty free sales. It is a travel perk. In the past it may have been a perk for the well off but that is no longer the case. On-board duty free sales are an integral part of Ryanair's pricing structure. Aer Rianta currently achieves £35-£40 million profits each year, perhaps 85-90 per cent of these from duty free sales. The abolition of these sales would have a huge impact on the company.
Duty free sales are a success showcase post Maastricht and should be marketed as such rather than being considered for abolition. I hope that the current review will be successful. The Minister will soon meet John Prescott and the Taoiseach has raised this issue on each occasion he has met the British Prime Minister. This rightly highlights the priority which this Government attaches to duty free sales. It is easy to talk about a success story in the context of the profits I have mentioned. I support the extension and the retention of duty free sales as part of our airport structure. I welcome Aer Rianta's worldwide success. It has been a flagship in many airports.
Previous Ministers may have had a different view of the value of the Great Southern Hotels to Aer Rianta. The development of hotels at airports is a core value for any airport. I support the Minister's view that these hotels should be a part of Aer Rianta. In spring 1998 a Great Southern Hotel will open at Dublin Airport with over 120 beds, creating over 120 jobs. If the Minister believes that the hotel group is to be a part of Aer Rianta it should be allowed freely to develop these hotels similar to a private sector company. One or two of these hotels need investment and refurbishment. This should be allowed to take place.
The Bill imposes a £250 million cap on investments. It is a great credit to Aer Rianta that it has been able to fund the capital investment in our airports from its profits. It is committed to a further £200 million investments in the next few years. I am concerned about the cap on investments and we should look at this on Committee Stage. In 1992 the Culliton report spoke of investments in the private and semi-State sectors. There is nothing wrong with future private sector investment alongside that of Aer Rianta at Dublin, Shannon and Cork Airports. This will develop the full potential for jobs in the North Dublin constituency. In the debate about the 1992-3 development plan those of us who believed in the job creation potential at the airport travelled to airports abroad. We saw warehouse development and other airport related activities adjacent to those airports and I would welcome this.
Deputy Cowen, as Minister with responsibility for this area, asked his Department to produce a document in relation to a public and private sector partnership for the development of the airport. I would like to see that revived. Unfortunately, the idea of developing the airports with the support of capital as opposed to constant State grants was dropped by the previous Government. No progress was made in relation to developing such an ethos. I would like to see the Minister reintroduce that document which was a point of reference regarding airport development and allow us debate it again. We should ensure that lack of capital in no way inhibits the progress and job prospects possible at the airports, especially at Dublin Airport.
The staff and management believe absolutely in ensuring that Dublin Airport is an international airport of the highest standards in line with the demands of travellers. This was my reason for not supporting a second airport for Dublin when the issue emerged in debate. It is only through capital investment that the board can ensure Dublin Airport is of the highest possible standard. Capital investment will ensure the board's hands are not tied.
I support the Bill and welcome the chance to develop the debate. Regarding the board's structure, I ask the Minister to discuss the issue of providing in the Bill for a worker director on the board.