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Dáil Éireann debate -
Wednesday, 8 Mar 2000

Vol. 516 No. 1

Priority Questions. - Air Transport.

Bernard Allen

Question:

6 Mr. Allen asked the Minister for Tourism, Sport and Recreation the input, if any, his Department had into the formulation of policy regarding the future of Aer Rianta in view of the fact that there is an onus on the State to facilitate the provision of frequent reliable and cost effective access to the country and to the regions. [6942/00

While overall responsibility for the formulation of air transport policy rests with my colleague, the Minister for Public Enterprise, my Department keeps in regular contact with her Department on such matters generally.

My Department has already conveyed detailed views to the Department of Public Enterprise on the future strategic direction of Aer Rianta in the context of tourism policy, and my officials have had discussions with their counterparts in the Department of Public Enterprise on the subject.

My view is that the priority requirement, from a tourism perspective, is the provision of necessary infrastructure and services at our main airports at the lowest possible cost consistent with safe commercial operations. Accordingly, Aer Rianta, the main provider of airport services in the State, has a critical role to play in this context. Competitive air access, to which Aer Rianta strategy has made a major contribution, has been of enormous importance in facilitating tourism growth to Ireland in recent years. Competitive access continues to be a critical element of tourism strategy for an island destination like Ireland. I look forward, therefore, to presenting my views on this subject, and on how Aer Rianta can continue to contribute to maximising Ireland's tourism potential, when the matter is raised in Government.

Recent Aer Rianta accounts show that Dublin Airport made a profit of £48 million in its operating year. Does the Minister agree that ownership of Dublin Airport is like a licence to print money? Does he agree that the profits from Dublin Airport should be used to reduce landing charges at regional airports and at Shannon and Cork airports, and to market the regions? Does he agree that if Shannon and Cork airports were sold, it is likely that the new owners would be driven by a desire for profit rather than an obligation to meet the needs of the region and that such an action would be a contradiction of the policies on providing low cost access to the regions and of their development? There appears to be contradictory thinking in Government circles.

These matters should be dealt with by the Department of Public Enterprise. I have made my views known to Cabinet and no final decision has been made on this issue.

My position has always been that low access fares to Ireland are important. This policy has been proved successful in the past by airlines which have provided low access fares. Anything which disturbs this must be resisted, or at least considered in great detail.

In Tasmania, I learned that as a result of the privatisation of Hobart airport, airport charges rose and airlines stopped flying to Tasmania. I believe Quantas, which has a constitutional obligation to provide a service to the island is the only airline doing so. It has always been my policy to provide low access fares to Ireland and I will maintain that policy.

Does the Minister agree that selling our airports would be akin to selling our harbours and ports? They are a vital national asset and essential for the development of tourism and of the regions. Can the Minister assure the House that his views will prevail in Cabinet and that a very profitable State body will not be sold?

This is a matter for the Government. Aer Rianta is a strategic national asset. This matter will be discussed at Cabinet in the near future and it is my job to ensure we continue to have low access fares because this policy has played a vital part in our success in the past. More than six million people now visit this island annually. Low access fares are a major factor.

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