I welcome the opportunity to say a few words on this Bill. It is a Bill on which I have some knowledge as I was involved in it during my brief term as Minister of State at the then Department of Tourism, Transport and Communications. It is good legislation. As other speakers said, there has been much discussion during the past few days on aviation matters. The crisis in Aer Lingus is very real and demands serious action if the future of our national airline is to be viable and long term. These decisions are not easy. It is inevitable that there will be disappointment and dismay, but at the end of the day we must be concerned with the overall future of Aer Lingus. That is of paramount importance.
In terms of my contribution I would like to move beyond the issue of Aer Lingus. There has already been much debate on its future and this debate will no doubt continue for the forseeable future. Instead I would like to focus on the broader issue of aviation policy itself.
The nature of aviation around the world is changing rapidly. The old order no longer pertains — we have already seen the collapse of Pan Am in America, once one of the most powerful airlines in the world. Liberalisation is shaking major aviation companies to their very foundations. This problem has been noticeable for a number of years. This has also been exacerbated in recent times and for the first six months of this year airlines around the world were digging into their cost base as never before.
Another important factor must be taken into account. Increasingly there is a movement towards the EC taking over competence in the area of air agreements rather than individual member states. It is also the stated intention of the United States to negotiate with the EC on air agreements rather than deal with individual member states. However, if that is to happen then we would be foregoing the flexibility that is necessary to deal with amendments to existing bilateral agreements with the US.
I am glad the Minister has stated that we are not prepared to do this and proposed that we take a hands-on approach to manage the necessary change rather than have a unilateral and abrupt change thrust on us. It is better that we have control of our negotiating destiny than accept what comes out of EC negotiations over which we have significantly less control. I hope there will be a response from the airlines here to do that because at one time it was proposed that Aer Lingus might fly to the west coast of America, but that did not take place. Translift Airways stepped in and are now serving that route successfully. Time is of the essence here and I am glad to note the Department will be starting this process of negotiations with the US authorities as a matter of urgency.
In such a volatile position anything can happen and the old law of business, adapt or die, comes into play. In order to survive and, ultimately, prosper, it is important to examine national aviation policy overall. It is evident from the Minister's statement that the Government has every intention of doing so. The last thing we can do in these circumstances is turn the clock back. Times have changed and we must change with them.
The last thing an aviation policy can afford to do is not evolve with and adapt to changing circumstances. We now live in a post-liberalisation era in Europe and elsewhere. The post war era which assured route exclusivity to national airlines is over. Predictable stability no longer exists. We are now faced with the challenge of ongoing change, an unavoidable fact of life. To pretend otherwise or to hanker back to some cosy past is an act of political folly. Opposition parties cannot pretend that this is not the new reality.
Liberalisation is inevitable. It is also a double edged sword. The negative aspect is that liberalisation means greater competition in our domestic market. There is, however, a positive aspect. It also offers us the opportunity to explore and exploit new international markets. The ultimate aim of any national aviation policy should be to gain access for Irish operators to as many international markets as possible and ensure that they can compete on a level pitch with competitors in other markets.
This applies not alone to air services but covers the whole spectrum of aviation activities in which Irish operators are involved. Regarding this latter point, the Bill under discussion is particularly relevant. I will refer to that in great detail later.
It is clear the Government has already made strenuous efforts in this regard. Its plans and policies for Irish aviation have already been unreservedly endorsed by both the Culliton and Moriarty committees. I have no doubt that these endorsements are due to the fact that such policies will bring significant benefits for Ireland, in terms of wealth and employment creation.
The Bill has an important role to play in the development of a national aviation policy. It sets out to establish the Irish Aviation Authority to provide Irish air traffic control services and regulate Irish aviation safety standards, which will take over from the Air Navigation Service Office, ANSO. This involves the transfer of 600 civil servants from the Department of Transport, Energy and Communications. At present ANSO provides air traffic control at the State airports and is responsible for licensing pilots and certifying the airworthiness of Irish aircraft. There are at present more than 300,000 aircraft movements in Irish airspace annually all of which must pay for the use of Irish facilities. It is clear that there will be a considerable weight of responsibility on the new authority.
However, the Irish Aviation Authority differs from its predecessor in significant respects. One of its prime objectives is to greatly improve the business prospects of the Irish aviation business. The new authority will have a vigorous commercial profile in order to win valuable overseas business in aviation training and consultancy services. This new body will have a £40 million turnover with highly trained staff and will be of significant benefit to the Exchequer in future years. The commercial benefit of the new authority is evident. Some Opposition Deputies may not realise that tremendous commercial benefits exists downstream.
The authority will operate to the highest safety standards. This confirms the Government's commitment to a strong, competitive and commercially vibrant aviation industry. In taking over the business of ANSO, the new Irish Aviation Authority will be taking over a business with more than 80 per cent of its revenues — approximately £36 million — coming from foreign airlines. For example, Aer Lingus and Ryanair account for less than 10 per cent of the authority's business.
A number of speakers yesterday were concerned about civil servants moving from a Civil Service status to the new authority. I welcome that move because it is important that there is continuity of staff in this field. This is a specialised area and the staff running the authority should have the expertise to do so. At present a civil servant can be transferred from one Department to another, but we do not want that in this case because modern technological advances and growth in air traffic need a staff trained in that area. From the air traffic controller down to the person filing up-to-date regulations and technical data, there must be continuity of staff and I am delighted that is to be the case.
In introducing this Bill, we are preparing the ground not only for a better air navigation service but also for one that is more efficient and responsive to the ever-changing demands of user airlines. All of this will be achieved without any undermining of the high standard of safety currently implemented by the Air Navigation Services Office.
Today Irish aviation is a large, diverse industrial sector, making a major contribution to the Irish economy, in terms of GNP activity and employment. Indeed, the industry is one which stretches from world class companies to small niche aircraft and airfield operators.
Fundamental to the success and continued development of Irish aviation are high safety and operating standards. Confidence in our safety and operating systems is the cornerstone on which the success of the aviation industry depends. As the industry expands, so too must our capacity to safely and efficiently manage and exploit our airspace. The purpose of this Bill is to set up an organisational structure which will continue to provide for safe management of our airspace and exploit opportunities to improve efficiency.
I know that the Air Navigation Services Office is well prepared to assume the responsibilities of a semi-State body, providing essential services for the Irish aviation sector. In recent years it has been developing its managerial and technical skills to a point at which its operation is as good as any of our European neighbours. In fact, on the technical side, following a five year national £30 million re-equipment programme, ANSO has state-of-the-art equipment and systems.
However, this does not mean that investment can cease. Most of the deficiencies in the air traffic system in the mid-eighties were direct consequences of low investment policies over previous years. This must not be let happen again. Removing ANSO from the restrictions of Exchequer funding will ensure that investment, to maintain and expand the capacity of our air traffic control system, can and will be made at the most appropriate time.
On this point I would like to mention the fact that, despite the congestion problems being experienced in Europe, delay resulting from deficiencies in Irish airspace is now a thing of the past. Ireland has set a high standard for other states to follow.
I would like to stress again the emphasis which we are placing on safety. It is extremely important that, with improved efficiency in air navigation services, the safety aspect is not undermined in any way.
Section 32 obliges the new company to report to the Minister on the technical and safety standards that it applies, and also provides for a technical and safety audit of the company every three years. This will ensure the safety priority in the new organisation.
Deputy Deasy referred to regional airports. I agree with him that Waterford is forgotten when funding for regional airports is being handed out. Deputy Deasy also mentioned jet aircraft. Due to improvements at Waterford Regional Airport a jet aircraft landed at the airport bringing in a party of golfers. That was the first movement of any jet in any regional airport in the country. However, there is a need for further funding.
The Bill has implications for regional airports. If my reading of it is correct section 43 proposes to charge regional airports for terminal services which were free or at a reduced charge up to now. Most of these airports are barely surviving and I wonder if these charges will be prohibitive in the future. These costs will ultimately be passed on to the consumer and damage the regional airports. Perhaps the Minister could use the power under section 45 to exempt regional airports from this charge.
I wonder also where air training schools fit in. An air training school in Cork closed down last year. At the moment there is an air training school operating in Waterford and I wonder if that will be affected in some way.
One key commercial objective that should be to the forefront of the new authority's activities is exploring and exploiting new markets for training and markets for specialised aviation consultancy projects. There is a depth of expertise and dedication in the Irish aviation sector that is second to none. This expertise can be put to effective use in seeking out these new markets and establishing the Irish Aviation Authority as a world leader in this important commercial area. Already important new markets have opened up in Asia and in Eastern Europe. The new authority should mount a marketing campaign in these areas as soon as possible with a view to promoting its skills and securing these valuable contracts.
There has been much pessimism in recent times concerning the future of Irish aviation. That is understandable given the nature of the crisis facing Aer Lingus and the job losses that this entails. However, I am concerned that amidst all this doom and gloom the good news regarding the establishment of this new authority will slip through the net. I hope that this will not be the case. The setting up of this authority marks an important strand of the Government's aviation policy. It offers the prospect of generating economic growth and, most importantly, of creating employment. It is one more step towards establishing a vibrant and commercial aviation policy and should be welcomed as such.
