Dáil Éireann debate -
Tuesday, 12 Feb 2002

Vol. 548 No. 2

Written Answers. - Airport Charges.

Ruairí Quinn

Question:

80 Mr. Quinn asked the Minister for Public Enterprise the terms of reference of a consultant (details supplied) employed to advise on proposals for a low-cost pier at Dublin Airport; the likely cost in this regard; and if she will make a statement on the matter. [1462/02]

Jim Higgins

Question:

82 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if she has received a report prepared by a person (details supplied) on airport charges; and if she will make a statement on the matter. [4468/02]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 80 and 82 together.

The consultant to whom the Deputies refer, Professor Rigas Doganis, was engaged by the Department of the Taoiseach to advise that Department and the inter departmental group chaired by the Taoiseach's Department, which was set up to examine possibilities for encouraging additional travel by air and increasing visitor numbers to Ireland following the terrorist incidents in the US last September. Apart from the Taoiseach's Department, the group included representatives of my Department, the Department of the Marine and Natural Resources, the Department of Tourism, Sport and Recreation, the Department of Finance, the Department of Enterprise, Trade and Employment and the Attorney General's Office.

While the engagement of the consultant was a matter for the Taoiseach's Department, it was agreed by the inter departmental group that the funding for the consultancy would be provided out of my Department's Vote. The estimated cost of the consultancy is Stg£15,000. The consultant's terms of reference were framed in the context of the interim report produced by the inter departmental group in November last and Aer Rianta's response to that interim report. Specifically, the consultant's role was to advise the Department of the Taoiseach and the inter departmental group at a strategic level on Aer Rianta's response to the group's interim report and the economic and airport management issues arising. In carrying out this role, the consultant was requested to focus on identifying the optimum strategy for the Government and Aer Rianta to follow having regard to the company's statutory mandate to manage the State airports on a commercial basis and having regard to the overall Government aviation and tourism policy context in which it must operate.

The consultant's report has been received and was considered by the Government at its meeting on 5 February 2002 and the decisions taken by the Government on the report were the subject of a press release issued on 5 February, 2002. The report has since been made available to the public via my Department's website at http@//www.dpe.ie. In its decision the Government noted the principal conclusions and recommendations of the Doganis report on aviation/tourism issues, and the endorsement by the report of the independent airport charges regulatory regime already in operation as established under the Aviation Regulation Act, 2001 and agreed the following actions should be taken: (a) the Minister for Public Enterprise to ask Aer Rianta to proceed immediately with the provision at the earliest possible date, of a rapid turn-around facility, having particular regard to the planning permission already secured for the proposed Pier D, at Dublin Airport to meet the specific needs of all carriers operating at the lower fares end of the market; the Minister to closely monitor this project so as to ensure that Aer Rianta provide the facility at the lowest possible cost, take full account of the needs of the low fares carriers and have the facility operational in good time for the 2003 season; (b) the Minister for Tourism, Sport and Recreation to ask Tour ism Ireland Limited to report to him on the existing consultative arrangements with the air carriers with a view to ensuring a greater degree of co-ordination and co-operation in marketing activities for existing and new services to the Irish airports between the carriers, Tourism Ireland Limited and Aer Rianta; and (c) the Minister for Tourism, Sport and Recreation to continue to highlight the need for accommodation providers and other tourism industry interests to improve price competitiveness to boost prospects for the 2002 season.

The Government noted that Dublin Airport has the capacity to cater for a resumption of normal traffic growth and, while facilities at Cork Airport are already stretched, Aer Rianta is proceeding rapidly with its plans for a new, expanded terminal to deal with traffic growth going forward. Shannon Airport, on the other hand, has ample terminal capacity but has been more directly affected by the events of 11 September. Recovery of traffic levels at Shannon will depend largely upon the return of confidence among American travellers and a greater focus by the airport on securing more business from the UK and continental Europe.

A feature of the recent debate on aviation-tourism issues is the belief that the level of airport charges is a matter for ministerial decision. The Government has drawn attention to the fact that the determination of airport charges is a matter for the independent Commission for Aviation Regulation set up under the Aviation Regulation Act, 2001 and has noted the view of Professor Doganis that the commission's determination of August last year is quite demanding of Aer Rianta. The Government has also noted the view of the consultant that any suggestion of separating the management of one part of Dublin Airport from the rest was likely to create more problems than it would solve. I greatly welcome the publication of the Doganis report, which I hope will assist considerably the public debate about these very important aviation and tourism issues. I believe the actions now agreed by the Government, to be pursued by myself and my colleague, the Minister for Tourism, Sport and Recreation, will help in the recovery of air traffic and tourism from the events of 11 September last.

Question No. 81 answered with Question No. 55.

Question No. 82 answered with Question No. 80.