I wish to share time with Deputy Clune.
Adjournment Debate. - Cork Airport Development.
Mr. Coveney
Is that agreed? Agreed.
Mr. Coveney
I am confused and worried as are many people in Cork as to what is happening in regard to the promised £61 million expansion package for Cork Airport that should have started. On the one hand I have a positive response from the Minister to a parliamentary question today which states:
I am aware that Aer Rianta has proposed expenditure of up to £60 million at Cork Airport over the next five years, on a variety of airfield, terminal and ancillary projects. I understand that the company has every intention of completing that expenditure programme.
On the other hand, I have a cutting from Monday's Irish Independent which has a headline “Anger as £61 million plan for Cork is axed by Aer Rianta”. The article states, “The bid has now collapsed and Aer Rianta is shelving the £61 million development plan on the basis that it cannot afford it”. I am informed that the chairperson of Aer Rianta, Mr. Noel Hanlon, came to Cork recently and while speaking to staff at the airport indicated that without an IPO the capital expenditure programme planned for Cork could not be funded and, therefore, could not go ahead. Will the Minister explain how she, as the largest shareholder in the company, is saying one thing while the chairperson has clearly indicated something else to the staff in Cork?
Last September Aer Rianta announced a massive commitment to Cork Airport. At the time the commitment was not reliant on an IPO. I was present at the press statement. Am I correct in saying it is still the Government's position that if there is not Cabinet agreement on the IPO, the Minister will not provide capital funding to allow the essential development to take place in Cork?
Cork Airport has a throughput of 1.5 million passengers annually. We face the prospect of having to deal with an estimated 2.5 million passengers by 2004 in an airport designed for less than half that number. I am in favour of investing State funds in capital projects that will ensure positive infrastructural development in transport. In this regard I do not see funding capital projects in airports to allow growth in passenger numbers as any different from investing in rail or road networks to allow for increased traffic.
Cork Airport is close to turning away extra business because future investment is uncertain. I ask the Minister to make a clear and unambiguous statement on the promised development of Cork Airport. This is not about investing in a company but about investing in a central regional infrastructure in the south. I am pleased a Minister for Cork is present.
I thank my colleague, Deputy Coveney, for allowing me to share time. I will probably reiterate some of his comments regarding the future of Cork Airport. Future development in that airport is uncertain. Last September we were invited to a presentation by the chairman of Aer Rianta of his intentions for Cork Airport which involved investment of over £61 million. I have raised the issue on an Adjournment Debate previously. The Minister for Public Enterprise has said the funding will go ahead. She also said it was a matter for Aer Rianta and that the Government will not provide the funding. We in Cork are confused. The workers at the airport and the general public in Cork are concerned. Passenger numbers have increased in the first four months of this year and are 20% up on the same time last year. The airport has reached its capacity and is in need of development. The future development of the Cork region depends on the development of the airport. There have been numerous rumours about splits in Cabinet, the IPO, that Cork Airport will be sold separately, that Shannon Airport will be sold separately. That is not acceptable to the people of Cork who want Cork Airport retained under the umbrella of Aer Rianta. We seek answers and clarification with regard to the Government's commitment to the future of Cork Airport.
I thank Deputy Coveney and Deputy Clune for raising this important matter. I wish there was an airport in my constituency for which I could fight.
The Minister is aware that Aer Rianta has proposed expenditure of up to £60 million at Cork Airport over the next five years on a variety of airfield, terminal and ancillary projects. She understands that the company has every intention of completing that expenditure programme. There is ongoing investment at the airport with £6 million having been spent in 1999 on the overlay of the runway. Projects such as apron extensions and taxiway improvements, at a total cost of £8 million, are about to go to tender. They will commence as soon as possible and will take approximately 18 months to complete.
Plans are currently being finalised for an extensive upgrading of the roads and public car parks, including a multi-storey car park for which planning permission has already been obtained from Cork County Council, and other infrastructure such as upgrading of the water supply, drainage and sewerage facilities. The estimated cost of these infrastructural developments is £15 million and it is hoped that work on these projects will commence before year end.
Aer Rianta also has plans to double the capacity of the existing terminal building, which is estimated to cost £30 million, planning for which has already commenced. Work is expected to commence on this project in 2001. In addition to these airport development projects, work has also commenced on the construction of the new Great Southern Hotel at Cork Airport, costing £7 million. This is scheduled to open in March 2001.
The Minister will maintain an ongoing review of the capital programme at each of the State airports in the light of developments in traffic growth and Aer Rianta's future funding requirements and capacity.
Mr. Coveney
On a point of order, a Cheann Comhairle.
What is the point of order?
Mr. Coveney
The Minister of State has not answered my question. How can he on one hand say that the funding will go ahead while Aer Rianta says it will not?
That is not a point of order.