Skip to main content
Normal View

State Airports.

Dáil Éireann Debate, Tuesday - 7 December 2004

Tuesday, 7 December 2004

Questions (47, 48, 49)

Willie Penrose

Question:

66 Mr. Penrose asked the Minister for Transport the proposals which have been made for the future of the Great Southern Hotel Group in the context of the break-up of Aer Rianta; and if he will make a statement on the matter. [32357/04]

View answer

Willie Penrose

Question:

78 Mr. Penrose asked the Minister for Transport the position with regard to the break up of Aer Rianta and the operation of the three new airport authorities; and if he will make a statement on the matter. [32355/04]

View answer

Simon Coveney

Question:

93 Mr. Coveney asked the Minister for Transport the estimated cost of the redevelopment of Cork Airport; if his attention has been drawn to the current cost estimate of the project; and if he will make a statement on the matter. [32037/04]

View answer

Written answers

I propose to take Questions Nos. 66, 78 and 93 together.

In keeping with the provisions of the State Airports Act 2004, the newly appointed board of the Dublin Airport Authority has a statutory mandate to do everything necessary to give effect to the restructuring of the State airports. The new Shannon and Cork airport authorities have also been incorporated and, in line with the framework provided by the State Airports Act 2004, these two new authorities will, in due course, own and operate their respective airports once sufficient distributable reserves are available to transfer the relevant assets.

Prior to the assets of Shannon and Cork airports being vested in their respective authorities, their boards are charged with preparing to assume full responsibility for the management and development of their airports. They are also empowered to undertake functions delegated to them, on an agreed basis, by the Dublin Airport Authority and the three airport authorities are currently discussing the scope and scale of such delegated functions. Each of the airport authorities is also required to prepare a comprehensive business plan for their airport for consideration by myself and the Minister for Finance.

In accordance with the 2004 Act, the transfer of assets to Shannon and Cork airport authorities cannot take place earlier than 30 April 2005 and, thereafter, a phased approach will allow one of the new airport authorities to be vested first, that is, Shannon Airport, while Cork Airport will be vested once sufficient distributable reserves have been built up within the Dublin Airport Authority. Both I and the Minister for Finance must be satisfied as to the state of operational and financial readiness of the Shannon and Cork airport authorities before the assets of the airports are vested in those authorities. The formulation over the next few months of comprehensive business plans by the new boards will be a key aspect of achieving operational and financial readiness.

In furtherance of Dublin Airport Authority's new role, the position of its principal subsidiaries, including the Great Southern Hotels Group, must be considered by the authority itself in the first instance and then by me. I expect, therefore, that the business plan of the Dublin Airport Authority will indicate the board's proposals for the future of the hotels group.

I am confident that the new boards of the three airport authorities will successfully meet the challenges ahead. Through more focused commercial operation, all three airports 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. In this regard, I again pay tribute to the board of the new Shannon Airport Authority and the staff at the airport for their recent success in securing Ryanair's 12th European base at Shannon Airport. This is a major economic boost for the region and a vote of confidence for the future.

As regards Cork Airport, work is proceeding on the major new terminal development and associated infrastructure which will position the airport to cater for continued growth in air services and passengers. I am informed by the airport authorities that the contract price for this major development amounts to approximately €153 million with provision for variations. The Dublin Airport Authority, the Cork Airport Authority, the project managers and the contractor have a framework in place for monitoring the project and the Dublin and Cork airport authorities are reviewing the estimated costs to completion.

Finally, in all these matters the boards and management of the three State airports will continue to engage constructively with the staff of the airports and their trade unions.

Top
Share