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Dáil Éireann debate -
Tuesday, 14 Oct 2003

Vol. 572 No. 3

Written Answers. - State Airports.

Denis Naughten

Question:

74 Mr. Naughten asked the Minister for Transport his plans for Dublin Airport; and if he will make a statement on the matter. [23061/03]

Denis Naughten

Question:

83 Mr. Naughten asked the Minister for Transport his plans for the break up of Aer Rianta; and if he will make a statement on the matter. [23059/03]

Willie Penrose

Question:

95 Mr. Penrose asked the Minister for Transport the basis on which he took the decision to dismantle Aer Rianta and establish separate com panies to run Dublin, Cork and Shannon Airports; the way in which it is proposed to allocate the assets of Aer Rianta to the new companies; if his attention has been drawn to the serious concern expressed by the Irish Congress of Trade Unions regarding his plans; the discussions he has had with trade unions representing workers employed by Aer Rianta; and if he will make a statement on the matter. [23131/03]

Bernard Allen

Question:

103 Mr. Allen asked the Minister for Transport his plans for Cork Airport; and if he will make a statement on the matter. [23062/03]

Michael Noonan

Question:

133 Mr. Noonan asked the Minister for Transport his plans for Shannon Airport; and if he will make a statement on the matter. [23060/03]

Seán Crowe

Question:

140 Mr. Crowe asked the Minister for Transport if he remains committed to breaking up Aer Rianta. [22955/03]

I propose to take Questions Nos. 74, 83, 95, 103, 133 and 140 together.

There are two main issues in An Agreed Programme for Government relating to the future of Aer Rianta and the State airports. These are the proposals concerning greater autonomy and independence for Shannon and Cork Airports and the commitment to examine proposals for a new independent terminal at Dublin Airport and to progress such proposals if the evidence suggests that such a terminal will deliver significant benefit.

There has been a broad level of support for the Government's decision of July last to establish the three State airports as fully independent and autonomous authorities under State ownership. The new arrangements are designed to strengthen and expand each of three airports and to give both Shannon and Cork a fresh, debt-free start under strong and visionary new leadership. I believe that all three airports can perform even better than they have to date and, through more focused commercial operation, each can play a greater role in stimulating and supporting regional economic activity to the benefit of their customers, both airlines and passengers, and of Irish tourism, trade and industry.

Work on the implementation of this decision is proceeding apace in my Department. I will shortly be seeking Government approval for the drafting of the necessary amending legislation to give effect to the decision and I would hope that this legislation could be enacted by the end of the year. I have appointed the chairmen of the new boards-designate for the three airport companies and I expect to be in a position shortly to announce the other members of these boards. My Department is also at an advanced stage of a public procurement process to engage expert advisers to assist with the implementation of the Government decision. It would be my hope that the three new State airport companies could be up and running on a statutory basis in the first half of next year.
It is envisaged that the two new independent airport authorities for Shannon and Cork will both commence business free of debt and that the debts associated with these airports, including the debt associated with the major new investment programme at Cork Airport, will remain with Dublin Airport. In conjunction with Aer Rianta, my Department is currently giving urgent attention to the options for giving effect to the establishment of the three new airport authorities including the optimum mechanisms for allocating airport assets among the three airports. These arrangements will ensure that both Shannon and Cork airports will have sound balance sheets, giving both a fresh start to develop and grow their business at a pace which I believe can be even greater than they have performed in the past.
I am also giving detailed consideration to the implications for Dublin Airport of absorbing the debt of Shannon and Cork in the context of other significant assets of the Aer Rianta Group such as the Great Southern Hotels and Aer Rianta International. I will also be consulting with the new airport boards-designate on these matters.
I have already outlined the position in relation to ICTU and the Aer Rianta unions in my reply to earlier questions today. I want, however, to restate that the workers in Aer Rianta have nothing to fear from this restructuring of the State airports. There will be no compulsory redundancies and no change in the terms, conditions and tenure of employment. As I have said on previous occasions, my whole approach is focused on developing and growing the State airports.
As regards the second major issue in An Agreed Programme for Government, namely, the second independent terminal concept at Dublin Airport, the report earlier this year by the panel of experts chaired by Mr. Paddy Mullarkey, which assessed the expressions of interest in relation to this matter concluded that such a terminal would be operationally and technically feasible. The panel also believes that an independent terminal is a viable strategic option for the development of Dublin Airport and would elicit considerable market interest.
I am continuing to give urgent attention to the independent terminal concept. I intend to appoint the remaining members of the new board-designate for Dublin Airport shortly and I will ask the chairman-designate, Mr. Gary McGann, for the urgent views of the board in relation to infrastructural development generally at the airport, including their views on the second terminal concept. I will then bring proposals in this matter before the Government.
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