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Seanad Éireann debate -
Wednesday, 29 Oct 1986

Vol. 114 No. 9

State Guarantees Act, 1954 (Amendment of Schedule) Order, 1986: Motion (Resumed).

Debate resumed on the following motion:
That Seanad Éireann approves the following Order in draft;
State Guarantees Act, 1954 (Amendment of Schedule) Order, 1986;
a copy of which Order in draft was laid before Seanad Éireann on 20 October, 1986.
—(Senator Dooge.)

I was not ready for that. I worry about this type of Government funding to Aer Rianta or any such body. I welcome it but perhaps present and future Ministers might look at this point rather than having this order in draft form. When we are talking about £25 million perhaps we should have a Bill which we might be able to discuss at more length.

I understand that this type of money would come under the heading of a letter of comfort. That is funny, to say the least. A letter of comfort of £25 million from the present Coalition Government is certainly something that money institutions would be examining carefully at the moment before standing over it.

I welcome this order, but if the Minister decides to give £30 million to Dublin Airport he must admit that the Shannon cross-runway is too short. We have asked time and again for a mere £5 million for the cross-runway at Shannon. The Minister made reference to the western fuel terminal at Shannon Airport and the provision of the pre-inspection facilities. I had communications with him on the fuel terminal at Shannon. I understand from the letter which I received that Aer Rianta or such bodies would have to pay totally for that new, extended fuel terminal at Shannon Airport. If I understand the Minister correctly, there is now a breakdown of how that will be funded. I want to ask him also about the pre-inspection facilities. I would like to know at first hand how that facility has worked. Is the Minister happy about it? I live near the airport and know that there have been problems and snags. As a legislator I think we should get a report on how the pre-inspection facilities worked at Shannon. We all supported the introduction of pre-inspection facilities. If I could read such a report I might feel that I could support the measure again.

I repeat my worry about laying this kind of a draft order before the House. The Minister's address here indicates that we are really talking about £25 million for Aer Rianta. Lest I should be taken wrongly, I totally support this. I see, at first hand, a very, very successful operation in Aer Rianta. I am talking about Aer Rianta, Shannon. I do not know about the Aer Rianta situation in Dublin. Lest I should be misunderstood by the Minister, I totally support Aer Rianta but I worry about this kind of money when we are talking about cut-backs. This is laid before the Seanad in draft form on the last day of October with a ministerial address which tells us what we are at.

I hope the Minister has noted my request that he might see his way to talk to various persons when they decide to spend £30 million plus. Like the Minister and his allegiance to Cork, I have my allegiance to Shannon. The marvellous thing about Shannon is that even though it was always in Clare it is sometimes claimed by Limerick. If there is trouble, Shannon is stated to be in Clare. If it is successful, as with SFADCo, Shannon is claimed by Limerick. That has happened under the present Minister and under previous Ministers I will not name but who claimed its successes.

My main appeal here, as a Senator of ten years standing, is about the expenditure of this type of money being laid on the Clár of the Seanad in this type of draft form. I am sure the Minister will have a very correct and clear answer. A draft, such as this State Guarantees Act, 1954 (Amendment of Schedule) Order, 1986, has confused me before and that is why I had to say so today. It is big money at a time when we are cutting back in many other areas. That money may well be needed in areas other than extra runways.

The phrase "letter of comfort" is a lovely phrase. That should be noted, because a letter of comfort from old Governments or, indeed, future Governments could well mean positive cash and positive big money. I wonder about a letter of comfort from today's Government to the tune of £25 million. I just have my reservations about that.

I welcome this motion seeking approval for the draft State Guarantees Act, 1954 (Amendment of Schedule) Order, 1986, in relation to Aer Rianta. I was interested to hear Senator Honan who spoke with quite a degree of knowledge of the Shannon Airport situation and was full of commendation of Aer Rianta for their management of that airport. I presume her colleague, Senator Hillery will be contributing shortly. I do not know whether it will be County Clare or County Dublin that will take his particular interest on this occasion.

When the Minister spoke a few minutes ago, his voice changed quite audibly when he mentioned Cork. I do not suppose anybody here will mind me raising my voice in reference to Dublin Airport. I want to get one point across before I get into that area. It should be borne in mind by everybody, whether from Shannon — whether it is in Clare or Limerick — or from Cork, or who was lucky enough to be born, bred and living in Dublin, that Dublin Airport is taking the largest volume of air traffic into this country. In fact, the Minister's speech recorded the fact that there was an increase in August 1986 as compared to August 1985 of some 17 per cent in air traffic coming and going from Dublin Airport, with 2.6 million passengers annually using that facility. That is an enormous throughput of people.

When we think about 2.6 million, it is not a great deal less than the entire population of this State coming in and out of that airport facility. When we bear that in mind and consider the transit traffic, which obviously is a major contributor to the use of Shannon and other airports Dublin Airport actually deals with 70 per cent of all incoming and outgoing traffic in this State. In other words, it is the State's main airport. We are asking the State by way of the motion before this House today, and presumably before the other House in due course, to consider departing from what has been the arrangement previously with Aer Rianta and coming up with an arrangement which provides 75 per cent of the funds by way of the resources of Aer Rianta — who have been doing remarkably well in recent years — and 25 per cent from the State. In relation to the 75 per cent, 25 per cent will come from their own resources, and 25 per cent from borrowings by the company.

It is clear from what the Minister has said that Aer Rianta had a surplus of £7.8 million last year, 68 per cent of which arose from their operation in Dublin Airport. To that extent the funding back to the facility, which has been recording almost 70 per cent of its surplus and also taking 70 per cent of the State's use of airport facilities by way of the arrival and departure of passengers, is very important. I say that for other reasons that I have not mentioned so far. Airport facilities for passengers departing or arriving in Dublin Airport have become tremendously well developed. In saying that once again I compliment Aer Rianta on their excellent arrangements for passengers, and not just the arrangements for the arrival and departure of passengers but conveniencing them in every way while they are within the airport complex. The airport has been developed into a very modern European airport comparable with many of the vary spectacular airports in other European capitals. Aer Rianta have served this State extremely well in their management of that airport.

It is also fair to say that there has not been any serious development of runway facilities at Dublin Airport since the forties. There is a concern, shared not alone by Aer Rianta and the Department of Communications who are responsible for the airport, but on a wider brief by those engaged in piloting aircraft and in the running of the airport, that the main runway is breaking up. There is a clear need for the State to invest £31.26 million at 1985 prices in the runway facilities of the order mentioned today in the draft order before the House. The draft order deals with this urgent problem. It is not one that can be glanced over and patched up again. It requires the State to invest in runway development of a kind which provides our main airport with proper aircraft landing facilities. The runways should be capable of taking aircraft of the size and technical capabilities seen in recent times. Clearly, what is in mind in this scheme is giving the airport those facilities and giving them facilities in modern terms that will bring, not just the facilities of the airport but the more technical needs of any of our aerodromes up to the highest standards. I have no doubt that this exercise will be welcomed by the vast bulk of the population using the airport in the years ahead. Hopefully, the target of March 1989 will be met and the new airport runways will then be in a position to be used.

Finally, I could not help but notice that the Minister mentioned the considerable advantage that would be shared by the peoples of Finglas, Ballymun and Castle-knock in the new arrangements in relation to the east-west arrival and departure of aircraft into Dublin Airport. I share a house with a person who has a particular interest in that part of the city. I know from frequenting that part of the city the extent to which low flying aircraft interrupt family life and normal activity in the very largely populated areas in the suburbs which I have just mentioned. On those grounds, I am sure it is a most welcome development.

I welcome this order particularly because it is putting the necessary capital behind a project which is of urgent necessity to go ahead with the development programme for runway facilities at Dublin Airport. It follows on the very major development we have all seen in the airport facilities, both for arrivals and departures. Dublin Airport carries 70 per cent of all arrivals and departures in the State and has not seen a development of this kind since the forties. Therefore, I welcome this order and hope the House will see fit to pass it today.

Aer Rianta are a profitable company and we should commend them for that. Under this draft order the company are being enabled, through the borrowing mechanism, to fund half the costs of the proposed runway at Dublin Airport. It is understandable that, given the restricted balance sheet of the company — by which I mean they have no fixed assets of their own — the borrowings to finance half the expenditure of the runway would require some formal guarantee.

I am a member of the Joint Committee on Commercial State-Sponsored Bodies. Aer Rianta seem to me to be very unusually structured and in need of change. They have a share capital of £51,000. Their fixed assets are owned directly by the Minister and are not included in the balance sheet. Aer Rianta then administer the fixed assets on behalf of the State. Capital expenditure has been funded by the Minister and the book value of these assets at 31 December 1985 was £27.9 million. As the Minister has pointed out, in 1985 there was a surplus on trading activities of £11.5 million. From a commercial viewpoint Aer Rianta are, as I have already said, inappropriately structured. I note what the Minister said about a review group to study the future structure of the company. I will take this opportunity to ask him when he expects the review group to report.

With regard to State guaranteed borrowings I understand that, in this instance, as the company have no fixed assets of its own, they cannot therefore offer those assets as collateral for the borrowings. However, I want to make a general point about State borrowings. It is appropriate that I do so on this motion. I share the view that a reduction in the amount of borrowings guaranteed by the Exchequer would result in a greater commercial awareness on the part of State-sponsored bodies. Furthermore, if these guarantees were not available a more rigorous appraisal of the investment risk would be made by the lending institutions. I will again make the point I have made before under different headings that State guarantees on borrowings should be reviewed at regular intervals. There should be time limits on the borrowing permissions. That would introduce a rigour which is the order of the day in relation to borrowing for the private sector. It should introduce a greater degree of commercial orientation and awareness on the part of State-sponsored bodies.

I look forward to the reply to the point raised by Senator Honan in relation to the draft order, the actual procedure we use, which in this instance commits the State to guarantee the very large sum of £25 million. I wonder whether a review of this procedure is under way?

I do not share the view of Senator Honan who painted a very rosy picture of Aer Rianta in Shannon, nor that of Senator Hillery. Aer Rianta are the greatest scourge this country has known since Shanahan stamps. Aer Rianta in Shannon Airport charge self-drive companies the sum of £6,000 for a five foot desk in Shannon Airport. Larger companies get ten feet at Shannon Airport for £100,000. When a jumbo comes into Shannon a number of people who have their self-drive cars booked go to the desk but they cannot be catered for at a five foot desk. There would be plenty of space in Shannon if Aer Rianta took the trouble to extend these desks but they have refused to do so.

One of the self-drive operators in Shannon has a mobile coach which is converted into an office out on the airport. When the passengers arrive in Shannon they have to go out to the coach and queue up outside to complete their documents to take out their car. Tourists coming into the country and people who are providing a car service should not be treated in that way. Cars here are twice the price they are in the United Kingdom and Northern Ireland and the insurance on the cars is about four times what it is in the North of Ireland or the United Kingdom. In Jersey the manufacturers give the cars to the car hire operators free of charge. In addition to that, the manufacturers also give them £50 to tax and register the cars, the reason being that at the end of the season the cars are then sent to England as second hand cars where they are offered for sale in auctions. Two of the manufacturers, Fords and GM then sell their cars. The reason for all this generosity in Jersey is that these companies want to keep up their market penetration.

The production of motor cars in Europe is 14 million units. The demand in Europe is ten million units. There are four million cars to be dumped or used in other ways. The insurance on cars in Jersey, the United Kingdom and in Northern Ireland runs at about £150 to £200. It is £900 a car in this country. The self-drive operators who are providing a service without which our tourism and our airports would be useless, are paying very high charges for rental. They have no accommodation. Every disincentive is used to prevent these people giving a good service, making a profit, paying their way and keeping up valuable employment. I will move from Shannon to Dublin for the moment——

An Leas-Chathaoirleach

Will the Senator move a little from cars?

I will do that. The way Aer Rianta are treating these people is a disgrace. We look at television and we see, "no VAT in Dublin Airport; money is gone out of fashion; you spend your money going out of Dublin Airport". The custom laws in this country are that a person is entitled to bring in £200 worth of goods provided no article costs more than £55.

Recently a Cork man had occasion to go to London. He went into the duty free shop at Dublin Airport and bought a watch for £58. Nobody said to him in the Air Rianta shop that it was in excess of what the allowance is. He flew to London and on his way back the customs people stopped him and asked him: "Where did you get the watch?" He said: "I bought it in the duty free shop". The customs man asked him how much did he pay for it. He said he paid £58 which was £3 over the rate and the customs man seized the watch. He is now without his watch. That is the kind of treatment Aer Rianta are giving to people. The first thing we should do is to investigate Aer Rianta and their operations.

I have already made complaints to the Minister for Communications about this. The Minister told me he has nothing to do with the day to day operations of Aer Rianta. Aer Rianta are not only an autonomous body; they are dictators. We all know what has happened to dictators. We know what happened to Hitler, Mussolini and the other dictators. I can assure the House that it is only a matter of time before it comes to Aer Rianta.

The Minister said Dublin Airport was the busiest State airport in 1985, that it handled a throughput of 2.6 million passengers and this year there has been a satisfactory traffic growth in Dublin Airport in a difficult, economic environment for air transport traffic. He said that in August of this year traffic showed a spectacular increase of 17 per cent above August 1985 and it was the busiest month. It was because Aer Lingus brought in a cheap fare of £69 to go to London. You booked today you flew tomorrow. You paid your fare. You went to London but they did not bring you back tomorrow or the next day.

I have had a number of complaints about this. I went to London at my own expense to investigate this position. I found that Aer Lingus, first of all, would not take a booking by telephone. I had to go into the office which opens at 9 a.m. I arrived at 7.30 a.m. and found a queue of people before me. I went into the office and was told: "There are no seats on this flight today". A number of people who were at the head of the queue, who had to get back, paid £73 sterling, having got their tickets from Aer Lingus with a contract to take them back to Dublin within 14 days. Some of the people who were outside were actually weeping. They had paid their money; they had gone on their holiday; and on three successive days they failed to get back to Dublin. On three successive days I failed to get a return trip.

I decided then that I would come to Dublin and hold a press conference to give this the publicity to which it was entitled. I then paid my £73 by putting my credit card on the desk. They decided to get in touch with Dublin Airport and having done that they said: "There is no need for you to take that ticket; we now have 15 seats". Somebody waved the magic wand and there were 15 seats but there were still about 40 people in the queue. When I came back to Dublin the explanation they gave was that it was on humanitarian grounds that they provided these seats. If it was on humanitarian grounds, they should have given the seats to the people who were hardest hit, people who could not afford to pay to come back, or they could have asked was there any special reason why people had to get back. They did not. They just gave the seats to the first 15 people in the queue. Already two people had paid their £73 and they had gone away. I do not know what happened those people. I am sure Aer Lingus did not bother to give them back their money. It is very easy to have growth in the traffic, and they advertise this.

I was contacted by RTE. The newspapers reported my case and I also sent a submission to the Minister about it. Aer Lingus came on the radio and denied that they did this as a result of my raising the matter. They said they did it on humanitarian grounds. I can understand that any airport can have a special fare, but if they issue a return ticket they should honour that ticket. I know one person who holds six tickets because he could not get back on particular flights. The six tickets are out of date, and he could not get a flight. That was a con job. There is no question in the world about that, whether it was deliberate or not. As far as he was concerned he lost his money and he paid far more to come back.

The reality of the traffic Aer Lingus have generated is that, if air fares were reasonable, they would get the traffic and they would be busy all year instead of being busy for one or two months in a year. Those matters should be examined before Aer Lingus or Aer Rianta get any more of the taxpayers' money.

I want to support this proposed development at Dublin Airport. Unlike the previous speaker I have not had the experience of missing flights and being unable to get connections as he has had in London and elsewhere. However, we must all realise that as a result of Dublin Airport being in existence for many years now, it is only reasonable to expect deterioration in runways. Maintenance must take place over a period of years. In the Minister's speech it is pointed out that increased weight and size of aircraft demand greater length of runways. For that reason I can see the need for this runway to be built and to have the best facilities available for our larger aircraft to take off and touch down at our major airport with great ease and safety to all concerned.

I welcome this development. It is interesting to equate like with like geographically and otherwise in the provision of facilities for aircraft. In Munster, Shannon can take all international aircraft and Cork can link services with Shannon and Dublin. The whole region of Connacht and Donegal is without the services of a State airport as is pointed out here. We look forward to the day when that will be changed and when the support of the Government will be forthcoming for the airport in Knock.

All the necessary facilities have been provided in Knock for around £13 million. It has a runway of 8,200 ft. and if the company had got permission, the airport would have a runway far longer than that, indeed, the same length, if not longer than the one we are providing now of 8,650 ft. All that cost the Government was £9.8 million. We are asked here today to provide a runway at Dublin Airport that will cost £31.26 million, according to the 1985 figures but knowing how figures change from year to year I am not sure what that figure will be finally. I hazard a guess that it will be in the region of £45 million by its completion date. That is a very humble estimate. Everything required for the provision of safe landing facilities will be completed to Department standards at Knock. I welcome a decision by the Minister in connection with the licensing of that airport as soon as possible. I could not let the occasion pass without complimenting the people who carried out the development of Knock. It was a great achievement to have an airport the size of Knock Airport developed at a cost of £13 million. Everybody concerned with that development must be commended.

There is development taking place at Cork and Shannon which I also welcome. People in the east here may not have had the same welcome for us in the west when we tried to develop. As a west of Ireland man I want to welcome any development at Shannon, Cork and Dublin. It is imperative that we have the highest standard of equipment and airports for the reception of our aircraft and the reception of aircraft from all over the world. We must provide the highest measure of safety for everybody using this country. I welcome that development also. As regards Cork, Ryanair have applied for approval to operate services to Luton from Cork. As regards licences for other airports I hope that, when they arrive on the Minister's desk, they will get the same approval as has been given to Cork and Ryanair for the Luton — Cork flights. Traffic into and out of this country is something that must be welcomed by every section. We should be on the side of development and producing far better communications between this country, European countries and the world in general. I welcome this development at Dublin. I felt it was an opportunity for me — I hope the Minister does not mind me doing this — to equate the cost of the development of Knock Airport with what is requested here now. As I said at the outset, I believe that when the completion date arrives we will be talking in the region of at least £45 million for this development here in Dublin.

I note that the new runway will intersect the Ballymun-Naul road. The Minister said he can assure the House that all representations regarding the Ballymun-Naul road proposal are being carefully considered and that a final decision in that matter has not yet been taken. Am I to take it from that that the intersection of Ballymun-Naul road may not take place at all and there may have to be further designs for this new runway and that a tunnel under the runway may be a possibility? I would like the Minister to explain what is meant by "a final decision has not yet been taken".

I welcome the motion before us. I note that the amount of money being spent on a new runway at Dublin Airport is over £31 million. The Minister's report gives us the general impression that no money was spent on Dublin Airport. Over the past three years £750,000 was spent in Cork, £1 million is allocated for this year for navigational equipment and Aer Rianta are looking for approval for £250,000 for the terminal building. He then said that a proposal for the extension to the main runway in Cork is to be considered.

We have had many arguments in Cork over the years about our airport and Aer Rianta argued with public representatives in the Cork area about Aer Lingus not giving the service in Cork that they should be giving. Aer Lingus said the business was not there and the loads were not there. At that time we asked what would be the priority. Did they feel Aer Rianta were doing enough about getting Aer Lingus to stay in Cork or letting other people into Cork?

The Minister raised in the report the question of the size and the relevance of aircraft in recent years. I agree with that in comparison with the airbus 300, a fine aircraft which can land on very short runways as against the weight of the jumbo, the 737 and the 111. Aer Lingus spent a lot of money buying small aircraft, such as the 36 seater purchased in Belfast. I understand they bought four of them. They bought them because of commuter hauling between smaller airports. The people were not there and it was cheaper from a fuel point of view. At that time we made the argument that we should be giving priority to seeing that the runways were extended. Aer Lingus management at that time, in conjunction with Aer Rianta management, admitted to us that the priority would not be extra runways or the extension of runways. Because of the purchase of smaller aircraft for shorter usage shorter runways were needed. They also admitted that the type of plane they would be purchasing, in particular the airbus 300 which was being deeply considered at that time by Aer Lingus, would not need an extension of runways as they are built specially to come down on the same type of runway as the 737.

Since then we have had a complete change, again at enormous cost to the State because of the thinking by our State bodies, Aer Lingus and Aer Rianta. How could it happen that in a short period of time, between 1981 and now, there was a complete change of thinking by Aer Rianta and Aer Lingus. They are totally irresponsible. I certainly do not think they give the impression that they have to answer to anybody. That is the honest truth of it. I am glad that at last Aer Rianta are providing some of the money themselves for investment in this runway. At the same time let us not give the impression that they are coming up with the whole lot. The taxpayers must pay.

They now have four planes which are used only for commuter flying. They should be used for collecting people from smaller airports and bringing them to the major airports. That is what they do in bigger countries. Aer Lingus gave the impression that there was no need for any extension to the runways but they are now saying they must have over £40 million for Dublin alone. The report says that £1 million will be spent for navigational equipment in the Cork area. How much money was spent in Dublin? Dublin has changed massively over the years. I am not saying there is no need for change, but there is a priority. We should be talking about some percentage going to the other areas in comparison with the rest of the country. We have a very worrying argument going on in Cork about our airport — whether we can go in there any more. I understand it is very safe. There is an argument on whether we by-pass Cork, that we cannot get in because of weather conditions or because of something else and we might not have enough people coming into Cork.

For a long time they by passed Shannon. There always was a question about it and always an excuse made that "it is not worth dropping down because we do not have enough passengers for it". Let us not have the same impression now and have all the traffic going into the capital. I have to question it. I would be dishonourable and unfair to everybody else if I did not question it. Why is some consideration not given to looking for 1,000 feet extra in the Cork area. We cannot get it. The sum involved is only £3 million and I understand £2 million of that can be got back from the EC over a period of years. Yet no commitment and no consideration will be given to it.

We are trying to get people into all our regions. Our second biggest industry is tourism. Every facility must be given to it. Shannon is a fine airport but an impression is given that it is only second best. We must never do that. It is our first international airport. You could fly over to London and come back to Shannon. An impression may be given that we cannot get in there. That is not good for the country or for us in the region.

We are told now that because of a £1 million debt for the first time we cannot be given a commitment to extend the runway. Yet despite all the money that has been lost over the past ten years, massive changes have gone on at Dublin Airport. No figures are mentioned but figures are mentioned about Cork — £750,000 over the past three years. Do not forget to mention that. Do not forget the £1 million spent on Shannon. That is very important, because people up here will ask what is being done about Cork and Shannon. Mention the £1 million and the £750,000. Forget about the millions and millions that were spent in Dublin over many years. That is not mentioned. What are our priorities? I cannot approve of everything here, but the Minister must make this a priority in case something serious happens in the Cork area. We cannot tolerate this for the sake of a measly £1 million from the Government and another £2 million from the EC. I cannot allow taxpayers' money to be spent in this way and go back to the people in my region who have been told by the Government to get involved in local industries because the Government do not want to know about ferries or anything else. I do not deny that money has been provided for the ferry, which is very important for our region but the extension to the runway is every bit as important because it will encourage tourists to visit our region and we can sell what we have — our character and our charm. This is very important.

Let us not give the impression that one cannot come into Ireland unless one goes first to Dublin. This is unfair. When can we get the go-ahead to extend a runway at Cork Airport? We are not looking for a new runway of 8,000 or 9,000 feet. I always thought Dublin was well catered for. I did not think there was over-crowding in Dublin or that there was banking up because for a second runway to be provided, there must be banking up. I never knew there was any such problem at Dublin Airport and if there is, I would like to know about it. Is the Minister saying that a plane comes into Dublin Airport every five minutes, two minutes or ten minutes? What are our priorities? What are we interested in? Maybe we should tell Aer Lingus we do not need them. Maybe we should have regional bodies, or an airport authority.

Aer Rianta are giving a total commitment and priority to the Dublin area. I am not saying the capital should not get this help but maybe we should tell these people they are not fit to run Cork Airport or Shannon Airport and that we should have regional bodies, similar to the harbour authorities, and then we will fight for our own little corner. That way we will get the best out of everybody. I am not going to spend taxpayers' money on faceless people who do not accept any responsibility for their actions. They do what they think is best for their particular region. That is unfair. To ensure everybody's safety, the runway in Cork Airport must be extended.

I would like to ask the Minister for an explanation of the £750,000 spent on Cork Airport over the last three years because £750,000 would have done a lot of work. Since the lengthening of the runway in the Cork region is now being given top priority, why was that money not spent on the runway? An extra £1 million has been allocated for navigation equipment this year, but on what was the £750,000 spent? Why was it not spent on the runway?

I welcome the fact that money will be spent on the provision of the new runway at Dublin Airport. There is no doubt that it is a necessary and long overdue provision. From a safety point of view, it is necessary to have this runway built in view of the fact that over the past number of years aircraft have got bigger and the present runways are not suitable for the size, speed and weight of modern aircraft. The method of providing the money has been raised by Senator Hillery, and I go along with his assessment of the situation. The debate on the new runway has given an opportunity to discuss the running of Dublin Airport and the problems associated with the running of Dublin, Cork, Shannon and Knock Airports.

Over the years Aer Rianta have done a fantastic job in the management of airline traffic in and out of Ireland, ensuring that there is an order in the development of air traffic, the management of the airports, and putting people through the airports. For many years I have been of the opinion that Air Lingus have not been doing as good a job as Aer Rianta. I believe we have been suffering because of the cost of access traffic into Ireland since most of this access has been through Aer Lingus and they have been artificially keeping up the cost of access traffic.

I am delighted there is order coming into the traffic situation in the sense that we have another major Irish company competing. It seems that this competition has done nothing but good in the sense that traffic through Dublin has increased dramatically since Ryanair came on the scene. I have travelled on both Aer Lingus and Ryanair quite a lot over the past number of months. There is an excitement travelling with Ryanair because from the minute you get to the Ryanair desk in Dublin Airport until you land at Luton Airport you are looked after by people who care. You are not just another person travelling on an Apex ticket or a passenger travelling class Y or V; you are treated as a person of importance.

Most of my criticisms of Aer Lingus are not of the ground staff. The Aer Lingus ground staff at Dublin and London Airports, and at other airports are excellent. They do a fantastic job attempting to help the people get through the formalities of getting on the plane, but for some reason, in the past number of years the service in the air has deteriorated. It is good to see Ryanair, an Irish carrier, bringing back personal attention to customers in the air. I am not suggesting that every person on the Aer Lingus air staff is not doing their job properly, but there is a lack of contact with the ordinary passenger. Too often, particularly on busy flights one sees the regular flyers, many of whom are Aer Lingus staff, getting priority treatment. After half an hour in the air one begins to recognise Aer Lingus staff being treated much better than the ordinary passengers. I am not suggesting that Ryanair, if they become bigger, will not lose a lot of this personal contact. All I am saying is that the warning light should be seen by the people who are training Aer Lingus staff. Possibly one of the problems with the Aer Lingus air staff at present is that many of them have been on flying duties for a long time and may get a little tired and therefore are not giving passengers the attention they should.

I notice that Aer Rianta's profits have been building up at what would seem to be, for a semi-State company, a very good rate. There is no doubt that their duty free shops contribute to this to a large degree. However, one of the problems we find is that many goods in the duty free shops are not sold at duty free prices. These shops might be duty free, but the profit margins seem to be inordinate and there is no doubt that the Aer Rianta duty free shops are expensive in comparison to many other duty free shops. They are very high in the league of expensive duty free shops. It is a little incongruous to find that Irish whiskey is dearer in Dublin Airport than it is in British airports or other foreign airports. The Minister might say that we should not be buying duty free whiskey, but I am sure he brings in the odd bottle.

I can resist anything except temptation.

In his reply I would like the Minister to comment on the margins of profit in these duty free outlets. I am not suggesting that Aer Rianta are not entitled to make a profit and that this profit should not be put back into the provision of facilities in Dublin, Cork, Shannon and hopefully, Knock but what I am saying is that if they are making these inordinate profits at the expense of the travelling public, we should know about it.

Another matter I would like the Minister to comment on is the problem which has been mentioned on numerous occasions, and which has been highlighted in recent weeks — the bird problems, and what affect the new runway will have on this problem. Experts throughout the world suggest that there should not be a municipal dump within 15 kilometres of a major airport. This is agreed in Ireland, but apparently there are four major dumps within 15 kilometres of Dublin Airport and there is a further dump proposed. This could give rise to further problems in terms of seagulls and other birds which go to the dumps.

Mention has been made of Cork Airport. When the Taoiseach was in Cork he ran into a certain amount of flak because the runway extensions at Cork were not going to be provided. The Minister is suggesting that the project is being actively considered. "Active consideration" is a beautiful way of suggesting you are doing nothing but you are thinking about it. Active consideration is not what is needed in terms of the development of Cork Airport. Cork Airport needs an extension to the runway and extra facilities. When we see the extent to which traffic can be generated if we have proper fare structures, the only way Cork will get a share of this extra traffic is if there is an extension to the runway.

Competition in the air — the same as every place else — is good for business. It is good for everybody. I do not think Aer Lingus need worry too much about competition from the new carriers. They have to meet this competition head on. They have the expertise to increase their traffic flow and still allow the other companies to perform well. As far as Ryanair are concerned, I have one particular worry and that is the airport they are flying to — Luton Airport. Luton Airport is a major British Army and Air Force staging point for holidays and troops going abroad. I am worried about security at Luton Airport in the sense that I think there is absolutely no security there. If you walk into Luton Airport, your bags are not checked. I am not an alarmist as far as air travel is concerned, but I am concerned if my bags are not at least screened going into an airport. The last time I travelled through Luton Airport there was absolutely no check on baggage. I was carrying hand baggage and we went directly from the ticket desk to the plane with no security check. That should not happen at a major airport. It is not our problem and this is not relevant to the motion but I think the authorities in Luton Airport will have to look at their security arrangements. Unless they have changed them in the last couple of weeks, the position is as I have outlined.

In relation to Aer Lingus building on an extra runway which will generate extra traffic, I wonder how Dublin Airport can cope with extra traffic because at present, particularly on Saturday nights when there is a big volume of traffic to the seaside resorts in Spain, they are barely able to cope with the traffic that is generated. When traffic is being generated by people going to Lourdes and other places Dublin Airport gets clogged up very easily. If extra traffic is generated by the extra runway, there will be a major problem because Dublin Airport will have to be enlarged.

Many people made complaints, and anybody passing through the airport will have to acknowledge, that the standard of cleanliness in the restaurants in Dublin Airport, particularly the self-service, on occasion are not up to those one would expect in an area used by international travellers. The ground staff do a fantastic job, but the catering people do not do justice to that airport. I am speaking from a personal point of view. I pointed out to members of the airport staff that there was food on the floor and that frying pans had not been cleaned after use. When people are waiting for planes these are things they are very aware of. All services or facilities provided at airports should be up to international standards.

I sincerely hope Ryanair get the extension of services they are looking for. Also I hope the airport at Waterford is allowed to develop and that the full facilities will be provided as soon as possible. As I said, the generation of traffic is allied to fares. It has been proved — and Senator Daly has highlighted this — that even though there are anomalies in the fare structure, nevertheless the fact that fares have come down over the past 12 months has generated a lot of extra traffic.

I sincerely hope we can do away with the many differing airfare structures. It is crazy that a selective number of people can travel to London for £69. A Super Apex flight costs £74; a Ryanair fare is just under £100 but a person who cannot spend a weekend and has to travel from Dublin to London by Aer Lingus will be charged £181, plus £5 airport tax. In any aircraft at any one time there could be ten or 11 different air fare structures. On what basis are seats allocated to members of the staff of Aer Lingus? If they arrive at an aircraft with cut price tickets, are they allowed to travel when there might be a full fare or an Apex fare paying passenger looking for that seat?

I welcome the extension although it is a bit late in the day. The points I have made have not been made in a contentious manner. I am trying to ensure that the Aer Lingus of the past, and the standards of service provided by Aer Lingus in the past, are brought back and that Ryanair and the competition they are offering will be of benefit to Aer Lingus. What is the marketing policy within the Aer Rianta organisation as far as duty free is concerned, because it appears that excessive profits are being taken under the guise of duty free. A number of items in the airport are being sold as duty free which can be bought in downtown Dublin as cheaply or possibly cheaper than at the airport.

It is a tribute to the presentational skills of the Minister — and, indeed, the people of south-west Cork are lucky to have him as their representative — that he should come before Seanad Éireann today with a speech of this quality and be received seriously by this House. It is a tribute to the high regard in which we hold the Minister that, on foot of a speech like this, we are seriously considering a proposal to extend our approval to a State guarantee of the expenditure of a substantial sum of money. The Minister's speech is very long on problems and discussions about various airports throughout the country and very short on an analysis as to why we in Seanad Éireann should approve this proposed expenditure. It encourages the kind of twaddle we get in discussing whether there is food on the floor when, in fact, what we are discussing is whether we, in Seanad Éireann, should extend our approval to the State guaranteeing £25 million, because that is what we are discussing.

I have no objection to discussing the details of the operations of any individual airline and not very much was said today about these operations with which I disagree, but they are not what we are discussing. I recognise that if the Minister extends the scope of his speech in his introduction, it is very difficult to restrict Senators to discussing what should be discussed, that is, whether it is a good thing to extend a State guarantee for a sum of £25 million to Aer Rianta.

What is being discussed is a proposal, which apparently has already been decided by the Government, to approve an additional runway of over 8,000 feet for Dublin Airport. I do not know if that is a good idea or not. How could I, because there is absolutely no information here, or no information has been made available to me, on which I can base my decision. It may be the duty of the Government to decide these matters in principle. Aer Rianta as a State-sponsored body are entitled to make their own investment decisions. I have no duty in this regard except in so far as the State-sponsored body concerned come in here and seek my approval to the extension of a State guarantee. That is where my involvement is. If they want to invest £35 million, or £45 million, or £105 million from their own resources, in any investment they choose, subject to Government approval, the responsibility for that rests jointly on the Government of the day on the one hand and the board of Aer Rianta on the other. Good luck to them if they want to do it.

I am brought into the equation because, in the pursuance of my duty as a Member of this House, I am asked to approve a State guarantee. If I am asked to approve a State guarantee, it should be laid down in black and white why I should so approve that State guarantee. Why should I, as a Member of Seanad Éireann, agree to pledge taxpayers' money for a sum of £25 million? There may be very good reasons; the case may be unanswerable; the logic of the Minister's position may be overwhelming. I am not denying that these possibilities exist but what I am saying is that the information on which I can make the decision as to whether I agree or disagree with the Minister's decision is absent from the Minister's speech and therefore not available to me in this House.

We are not talking about Ryanair. We are not talking about Cork Airport. We are not talking about Shannon Airport or Knock Airport. We are talking about the justification or otherwise for spending £31.26 million on extending the facilities of Dublin Airport. Nowhere in this document is there any indication that there is any overcrowding whatsoever at Dublin Airport. For all I know, Dublin Airport is under-utilised at present. I am not saying these figures are not available. I am merely saying they are not available to me, and I have to make the decision. As long as I remain a Member of this House I will take my duties seriously, and I expect Ministers of whatever persuasion to come in here and give me a rational explanation of what they are proposing to do or what they are asking me to do. What they are asking me to do today is to stand four square behind a State guarantee of £25 million, that is, your money and my money, and they are asking me to do this on the basis of a presentation which is pathetic to say the least of it.

I am not blaming the Minister of State in that regard because I know he has his brief. I am blaming the whole apparatus of Government and the way in which these decisions were arrived at under this Administration and previous Administrations whereby State guarantees were extended to State companies on the flimsiest of explanations. We know what happened with regard to these matters in the past. We know the difficulties we got into with Irish Shipping. I will not go into the rights and wrongs or the political arguments about Irish Shipping. In the heel of the hunt State guarantees were put up and they had to be met. We had a similar situation with regard to Dublin Gas. I will not go into the arguments for or against the early or late nationalisation of Dublin Gas. As a Member of this House and over my objections, certain guarantees were given to Dublin Gas. The Government were not necessarily incorrect in giving those guarantees, but sufficient information was not given to me, as a Member of this House to make a reasoned and rational judgment on whether these State guarantees should be given.

I ask the members of the Government not here today, no doubt because they have many other important jobs to do, to listen to what I have to say on this question. When they were deciding whether to approve an extension for Dublin Airport, if the information with which they were presented in making that decision consisted only of the information which is in the Minister's speech, would they have approved that expenditure? There can be only one answer to that question. Of course they would not have approved it. They would not necessarily have said it was a bad idea. They would have asked for more information and more facts before making a decision.

There are a few points which could reasonably be made concerning this investment. There are three State airports in the country: Dublin, Cork and Shannon. There are a number of other private airports of which Knock Airport is the one with the biggest investment. I understand with regard to Cork Airport, Shannon Airport and Knock Airport — whether I agree with Knock Airport is not important at this point — that investment in those airports has a social as well as an economic dimension. There is a social reason why the airports are there and there is a social reason why Government money should be committed to them.

If there is any airport in this State which must stand or fall on its own economic base, that airport surely must be Dublin Airport. The reason I object is that this airport is being partly funded by taxpayers' money. The partial funding of this airport by the taxpayers is saying that the busiest and biggest airport in the State cannot be self-financing. I have no objection to funds being made available to Cork, to Shannon or to Knock: If you want to make funds available to Knock on the basis of social need that is your decision. But surely extensions to the biggest and busiest airport in the State should be capable of being financed without resort to taxpayers' money. Why is it necessary that 25 per cent of this should be provided by the Government, as mentioned by the Minister in his speech? He said the remaining 25 per cent will be provided by Seán Citizen. He calls it the Exchequer but it is really Seán Citizen. Seán Citizen will provide 25 per cent.

I see no good logical reason why an organisation which we are told has a trading surplus of £11.5 million cannot provide this out of its own resources. I recognise that in doing so it might still be necessary — if the project was reasonable and if the Government were satisfied that it was such a reasonable project — to give a State guarantee to the borrowing of the company. But there is no reason whatsoever why the company should not, out of its own resources, finance all this project. I await with interest the Minister's explanation as to why this uniquely very busy airport is unable to finance its own development.

If you look at the situation in Great Britain where all the British airport authorities are being privatised — I am not suggesting we should do the same in Ireland; that is not the thrust of my argument — it means somebody has decided that, taking the good with the bad, the busy with the slack, they can, in the future, finance all their own developments. Armed with that information, we are unwilling to impose an obligation on Aer Rianta to finance from their own resources the busiest airport, situated in the most populated area of the country. Leaving aside the fact that we do not know whether the investment is a good or bad thing, I do not see why public funds should be committed to it at all.

I would have quite a lot to say about the extension of the runway in Cork Airport and about the importance of Shannon, which has an immensely important part to play in Irish aviation. I would have much to say about the poor and bad decision to invest so much State money in Knock Airport if it were relevant to the motion. As it is not relevant to the motion I will not develop it. I ask the Minister not to lose sight of the fact that the Members of this House — whether they are supporters of the Government or members of the Opposition — are not possessors of a vast automatic insight into the mental processes of semi-State organisations. We cannot automatically say whether investments are a good idea.

If parliamentary democracy is to mean anything here it must mean that more information is given to more Members of Parliament who can express their view and their view can have a real part to play in the decision under discussion and in future decisions which are even more important. This kind of approach to public expenditure reminds me of a story told to me while I was a very young member of a local authority. An older and far wiser member of the authority spoke to me after a meeting one evening when we had approved a vast drainage scheme for the city of Cork, more or less on the nod. I expressed horror at this approach towards public expenditure. He said to me that, if the discussion was about buying an additional ten typewriters we would have discussed it for an hour, but we put through on the nod millions and millions of pounds of public money because, in some mysterious way, that is capital. Unfortunately, that is the way in which public affairs are run here. I am not satisfied that they should continue to be run in that way. There is a duty on this Minister and on all Ministers, in this Administration and in future Administrations, to be more forthcoming with the Legislature, to explain to them the rationale behind their decisions, to treat them as sensible human beings and sensible participators in the science of government.

If the Minister has made the right decision he has nothing to fear in presenting us with the facts, because we will start from a position where we will be prejudiced in favour of the Minister's decision in the first place. Inevitably we will be presented with the same facts and in the vast majority of cases, we will arrive at the same decision as arrived at by the Minister but it will be an informed decision, one that we can stand over and not based on a blind faith in the political and economic wisdom of Ministers of this Administration or any other Administration.

I look forward to the Minister's reply in this regard. Words fail me concerning why we should approve this order on the basis of the presentation before us today. I apologise to the Minister for the second time for appearing to have taken a position which is antagonistic to himself. I take it because he is the only person here today about whom I can make such comments. He is not the only person about whom I would like to make the comments, but he is the only person about whom I can make the comments because of the restrictions when commenting on other public servants, placed upon me by the rules of this House.

In concluding my remarks I look forward to the Minister's explanation as to why we in this House should approve a State guarantee in the sum of £25 million in respect of a project which will cost £31 million with 50 per cent of it borrowed. The borrowing is to be about £16 million but we are giving approval for a State guarantee of £25 million. That is an extraordinary way for a House of the Oireachtas to deal with taxpayers' funds.

This has been a very lively and interesting debate. It ranged over a wide variety of subjects, some perhaps a little remote from the proposal before the House which essentially relates to the financing of a new runway at Dublin Airport. I intend to cover most of the points raised.

Senator Honan raised the issue of whether we should be discussing a Bill before the House rather than a draft order. In case there might be any undue emphasis on the word "draft", the order remains in draft form until it has received the approval of both Houses. It would be incorrect to suggest that we are using a procedure which is breaking new ground. The contrary is the case. There are quite a number of precedents for this type of order and, indeed, there was one last year relating to a guarantee for the borrowings of the Dublin Port and Docks Board.

Sorry, Minister, it should be the other way around. Senator O'Leary's contribution confirms that I was right to think that we cannot just walk in for £25 million and walk out again.

Except, of course, that this issue was decided as far back as 1954 when both Houses of the Oireachtas passed the State Guarantees Act, 1954. That Act provided for the making of orders from time to time but it provided the precaution that such orders should not just be laid before the Houses but should be debated and approved by both Houses of the Oireachtas. The point raised by Senator Honan raises a far wider issue as to whether the 1954 Act is the basis on which we should be discussing this item but, from the legislative and administrative point of view, I can assure the House that we are following the proper procedures.

Let us consider also the issue raised by Senator Honan. The issue involves, as I see it, the entitlement of legislators to voice an opinion on the issue before the House. Because of the need for approval by the Houses, Members have an opportunity to voice their opinions. Would there be a tremendous deal of difference if I came in to the House with a Bill seeking approval for it? One could say there would be a number of stages in the Bill, but I wonder if that would make much difference. Members of both Houses have the opportunity to express their view on the issue in question and in this instance have the right and entitlement to express approval or a dissenting voice in relation to the order.

I am heartened by the general approval expressed by practically all Senators for the proposal before the House. Senator Honan raised the question of Shannon and referred in particular to the possibility of a runway extension at Shannon. I assure the House that Aer Rianta and the Department keep the adequacy of State airport facilities under continuous review. I confess I was unaware that there was a major priority in relation to a runway at Shannon but, the point having been made by Senator Honan, I will arrange to discuss it with my colleague, Deputy Mitchell.

A cross-runway.

The other point in relation to Shannon concerns the western fuel farm and I confirm that Aer Rianta are meeting the full cost which is over £1 million.

Regarding preinspection facilities at Shannon, this project involves the provision of US emigration and public health preinspection of passengers and aircraft crew at Shannon for entry to the US. The benefit to Shannon is that Aer Rianta are able to market the facility. This is another reason why airlines should operate through Shannon, thus generating additional traffic at the airport. The facility was introduced on 1 July on the basis of a four months trial period at the end of which the results will be assessed by both the Irish and US authorities. Following that evaluation a decision will be taken as to whether preinspection should be established as a permanent feature at Shannon. The initial reaction of all concerned with the operation of the facilities has been very favourable but, I cannot say anything further pending full evaluation not just by ourselves but also by the US authorities.

Senator FitzGerald is enthusiastic about the proposal. It is important that it be made clear to the House that down through the years the Dublin runway system has been fully maintained and overlayed as necessary, but the point has now been reached where further maintenance and overlaying would not be a good investment and, therefore, a new runway is now a necessity. I will take this point up later because there is some misconception about the need for a new runway. Comments have been made in relation to overcrowding, overcapacity and so on. It is important that the House should understand the background to the proposal and the necessity for the new runway.

Senator Hillery referred to the review group on the Aer Rianta structure. I do not want to be precise in relation to a date for a report of the review group. Senator Hillery is a member of the Joint Committee on Commercial State-Sponsored Bodies and he will be aware that this question was considered by the joint committee in 1979 who recommended, at that time, against change. Obviously there is now a new situation and there are complex issues involved. It is proper that these issues should receive more serious consideration before a recommendation is given. I hope the review group will complete its work comprehensively and within that parameter produce the recommendation at a reasonably early date.

Senator Daly raised a number of points which perhaps strayed a little from the runway development. I understand Senator Daly's attitude in relation to a number of aspects of air traffic. I am not sure if my colleague, Deputy Mitchell, has been informed fully of that attitude but I confirm that I will ensure that the Minister is made aware of his attitude.

Senator O'Toole raised an interesting point concerning the cost and as one would expect, considering his home base, raised some comparisons in relation to the Connacht Regional Airport. The figures indicate clearly that the proposal involves a substantial expense compared with what was involved in the Connacht Regional Airport. The reason for this is that the paved surface associated with the new runway at Dublin — the runway plus the parallel taxiway — is twice the area of the paved surface at the Connacht Regional Airport. Also the cost of the advanced navigational aids and associated lighting systems, the new control building and consequential roadworks exceed substantially the cost of the basic facilities provided at Connacht Regional Airport.

Regarding proposals for the operation of scheduled services from Knock airport the Minister, Deputy Mitchell, is prepared to consider any such proposals in the most sympathetic manner possible within the ambit of the particular bilateral air traffic agreement. The Minister has authorised a charter service from Luton and Coventry to Knock and is currently examing proposals from two operators for authorisations to operate scheduled services between Knock and certain UK destinations. I understand further that a lease to Manchester has been approved in principle.

Senator O'Toole raised also the question of licensing for Connacht Regional Airport. The House should be aware that the airport is licensed at present for operations in accordance with visual flight aids. When landing aids and runway lights are commissioned the visual flight rules restriction will be removed. Obviously it cannot be done pending the provision of such additional facilities. The Senator raised also the Ballymun-Naul road project. I dealt with this in my opening remarks and pointed out that an action group made very strong recommendations objecting to the proposed road closure and seeking instead the provision of a tunnel. These representations are being considered carefully but no final decision has yet been taken and obviously I cannot prejudge the full consideration of that situation.

Senator Cregan raised the question of the purpose of the new runway. I can assure the Senator that it is not to increase capacity but to replace the deteriorating main runway which is near the end of its life. I would like also to scotch the view — if it exists — that this is a proposal which has developed over the past few weeks or, indeed, months, but is rather a proposal that has been discussed for many years. It was first mooted in the late seventies and a formal detailed report was received as far back as 1982.

By the Minister for Communications. Since then there has been a further detailed examination. A group, representative of Aer Rianta, Aer Lingus and the Department examined the situation. Criticisms might have been made that the decisions were slow in being taken but, on the other hand, criticisms that hasty decisions were taken have no foundation at all.

Many Senators raised regional issues and I fully understand their views but, despite the claims for different parts of the country, virtually everybody agrees that there is a need for such a runway at an airport which carries 70 per cent of the traffic in and out of this country and this has to be catered for. Having said that, we have to consider the other airports and in particular the other two State airports. I fully understand the approach Senator Cregan has to Cork. I outlined in my opening remarks the fact that expenditure of £2 million was completed or was underway since 1982 at Cork Airport. Senator Cregan and other Members of the House will know where my heart lies in relation to the Cork proposal for a runway extension. I can fully understand the impassioned pleas from Senator Cregan. On behalf of Cork, I will be continuing my discussions with my colleague, Minister Mitchell, on this issue which is presently being actively considered.

Senator Lanigan raised a point in regard to bird feathers at all Irish airports. It is a valid point and because of its validity the Department of Communications liaise with the local authorities on the location and management of refuse dumps in cases where birds that might be attracted to such dumps could constitute a hazard to aviation. Certainly it is a point which is fully taken on board by the Department of Communications and the local authorities.

He also raised a point in relation to duty-free shops. There should be an understanding that duty-free shops in general must make a profit. That profit contributes to the surplus of Aer Rianta and that surplus goes to the Exchequer. Let us not lose sight of that point.

But surely not huge profits?

The figure for profits in 1985 for Aer Rianta was £11.5 million, not an insignificant sum.

Did they ever pay a dividend to the Exchequer?

Of that sum of £11.5 million, £10.2 million went to the Exchequer.

How much had the Exchequer given in return? What was their investment?

That was their total. I think it is important that all Senators — and I will come to Senator O'Leary in a moment — should know that the Exchequer received of their surplus in 1985 a sum of £10.2 million from Aer Rianta. That is a point that has to be borne in mind, particularly by those who ask why does Aer Rianta not fund this from their own resources. Their surplus comes to the Exchequer.

Surely you cannot justify excessive profits and false advertising?

On Senator Daly's point, I will have to point out that he is talking about Aer Lingus which is a separate semi-State body from Aer Rianta. The duty-free shops are under the control of Aer Rianta. I would not countenance excessive profits but I would expect Aer Rianta to run duty-free shops on a profitable basis. Considering that the return is favourable to the State, the Exchequer and ultimately to Seán Citizen——

Is it a fair one?

How much did he give originally?

My understanding is that the profit margins in the duty-free shops are reasonable but in relation to any particular commodity, since that is a matter under the operation and control of Aer Rianta, I would not have the exact profit ratio.

Senator Lanigan also raised the point about concessionary fares for Aer Lingus staff. He wanted to know the basis on which seats were allocated to Aer Lingus staff on cut price terms and the priority which they could receive over fare-paying customers. I have checked this point and I am assured that the staff of Aer Lingus using concession fares do not get priority over full fare-paying passengers, whether they be business fares, Superapex fare or Apex fare. It has been confirmed to me that seats are allocated to staff on a standby basis only. They have the same entitlement as anybody else to pay the full fare if they so wish.

Senator O'Leary made, as I would expect, a lively contribution. The basic premise on which he delivered his speech is incorrect and is answered by the point I made earlier that the surplus of Aer Rianta is virtually totally transferred to the Exchequer for the benefit of Seán Citizen. In that situation how can we suggest that Aer Rianta should, from their own resources, fund a capital project totally? In fact, the tradition in the past, because of the requirement to transfer the surplus to the Exchequer, was that capital projects were funded totally by the Exchequer. We now have a new approach in relation to this new development at Dublin Airport. We have a situation where the Exchequer is not directly funding the major part of the cost of the project. What will happen is that the company will provide a quarter of the cost from its future surpluses and own resources. It will borrow a further 50 per cent and what is left for the Exchequer to provide is one-quarter. That is a very considerable change in the situation in the past where total funding was provided by the Exchequer.

I share Senator O'Leary's concern for the taxpayer but we are in this instance not talking about a lame duck, and certainly in relation to Dublin Airport we are not talking about a lame duck. Of the Aer Rianta profit in 1985, Dublin Airport contributed £7.8 million which has now found its way into the coffers of the Exchequer. I appreciate Senator O'Leary's compliment in the opening remarks but I cannot agree with the basic thrust of his argument on the basis of the situation which I have just outlined.

There was an investment of £54 million by the Minister in Aer Rianta in capital at the end of 1984 and we are getting a return on that. Most years there is nothing at all.

As I mentioned earlier, the traditional arrangement was that capital expenditure was totally funded by the Exchequer; surpluses were year-by-year handed in to the Exchequer. That situation has now changed, with 75 per cent of the responsibility remaining with Aer Rianta and the remaining 25 per cent to be provided by the Exchequer. I have tried to cover as best I could the majority of the points raised. I am pleased that there has been such support for this proposal and on that basis I am asking the House to approve the motion.

Question put and agreed to.
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