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State Airports.

Dáil Éireann Debate, Tuesday - 22 June 2004

Tuesday, 22 June 2004

Questions (220, 221)

Seán Haughey

Question:

220 Mr. Haughey asked the Minister for Transport the justification for the break up of Aer Rianta; and if he will make a statement on the matter. [18531/04]

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Seán Haughey

Question:

223 Mr. Haughey asked the Minister for Transport the position on the provision of a second terminal at Dublin Airport; the reason Aer Rianta’s own plans in this regard have been abandoned; and if he will make a statement on the matter. [18534/04]

View answer

Written answers

I propose to take Questions Nos. 220 and 223 together.

As I have made clear on numerous occasions, I believe that with a fresh start both Shannon and Cork airports will be a commercial success and each will maximise sustainable employment both within the airport companies themselves and in their catchment areas.

The work which has been done by my Department's advisers, PricewaterhouseCoopers, in co-operation with Aer Rianta management and its advisers has underscored the fact that there are some major challenges facing the State airports and these challenges need to be addressed.

There has been a broad level of support at both national and regional level for the Government's decision to establish the three airports as fully autonomous authorities under State ownership. Through more focused commercial operation, all three airports can perform better and each can play a greater role in stimulating and supporting regional and national economic activity to the benefit of their customers, both airlines and passengers, and of Irish tourism, trade and industry. I have also given repeated assurances to ICTU and the Aer Rianta unions that there will not be any diminution in the terms and conditions of employment of workers in the company on transfer to the new independent airport authorities.

The Government has approved the publication of the State Airports Bill 2004 to give effect to the restructuring of Aer Rianta and the Bill has been circulated to Deputies today. It remains my intention that this Bill can be enacted before the summer recess.

With regard to the provision of a second terminal at Dublin Airport, passenger traffic through Dublin Airport is expected to grow from last year's level of almost 16 million passengers to 30 million by around 2020. New infrastructure capacity and facilities, both airside and landside, will be needed to cater for this growth including further terminal capacity. With regard to the latter, the programme for Government includes a commitment to examine proposals for a new independent terminal at the airport and to progress such proposals if the evidence suggests that such a terminal will deliver significant benefits. The question currently at issue, therefore, is not whether new terminal capacity should be provided at Dublin Airport but rather who should provide the next tranche of capacity, the authority responsible for the airport as a whole or the private sector.

As the Deputy is aware, the report of last year by the panel of experts chaired by Mr. Paddy Mullarkey concluded that an independent terminal at Dublin Airport would be operationally and technically feasible and that such a terminal is a viable strategic option for the airport. I continue to give urgent attention to the independent terminal concept and I will bring proposals in the matter to the Government very shortly.

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