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Dáil Éireann díospóireacht -
Wednesday, 4 Oct 2000

Vol. 523 No. 2

Aviation Regulation Bill, 2000 [ Seanad ] : Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

The importance of the air transport industry to an island nation could not be overestimated. It is of strategic importance to Ireland that there is a well developed infrastructure and access to this island nation. The importance of safety within that industry is of vital importance. With the increased number of people using our airports and the increased number of companies flying into our airports arising from competition, there is a real danger that corner cutting in the safety regimes will become the norm to make more profits.

There is a need to strengthen the safety regime to protect the millions of people who now pass through our airport systems. It must be established that self-regulation on safety is not acceptable. Such self-regulation, whether it is on the ground or in the air, should no longer be part of our safety regime. Standards on the ground dictate what will happen later in the air.

It is important in the public interest to provide for and control our airports. There is a strategic national interest to be protected by the Government and the State on behalf of the people. We should not trust the foreign multinationals or the Irish profit motivated operators to do the best job for the people in regard to guarding this important strategic infrastructure.

The State and its agents will do the best job in this regard for Ireland. There is no case, there fore, for privatisation. If investment is required, the State should invest in the companies that it owns regardless of whether they are airports or airlines. We have a duty to do so. In the interest of the wider economy, it is important to do so and carry out that duty. However, the Government appears to have adopted the attitude of black balling any possibility of investment by the State in any of the companies it owns. It is strange for the owner of a company, which has an abundance of money, to decide not to invest in its own company and that if investment is required, the company should be hived off to what, from the company's point of view, should be considered the enemy.

The policy adopted by the Minister and the Government has been to let the enemy in the door. This means that not a penny of the billions of extra money available to the Government has been invested in the critically required infrastructure at Dublin Airport. As we read in the newspapers recently and heard this morning on the Order of Business from the leader of the Opposition, there is chaos at Dublin Airport arising from the fact that the Minister, Deputy O'Rourke, said that she will not even ask the Minister for Finance for money to invest in the airport to make it safe and suitable for the huge number of people who now use it.

Just as there is no case for the privatisation of Aer Rianta or the airports, there is no case for the privatisation of a national carrier. There is a strategic need for this island nation to have its own airline, controlled by the State on behalf of the people. It would be next to criminal to hand over that national carrier to the loving tender care of the international carpet-baggers who are now at the door because of the indications the Minister gave to them that this sale of the century would be available to them shortly. I warn the Minister and the House that these carpet-baggers will pull out of places such as Ireland on the first downturn of business and leave us without a service. That is the likely consequence of the actions the Minister is proposing.

The Minister referred in her speech to the privatisation of Aer Lingus. This Bill will enable an independent regulator to make some decisions for which the Minister has responsibility but she does not have the political bottle to carry them out. If there is a difficult or unpopular task to do, the Minister will kick to touch, hive it off or not do it at all. An example is the ESB where it was necessary to rejig the tariffs and to make decisions about power stations, but the Minister appointed a regulator and said he would look after it.

Who appointed the telecommunications regulator?

I have listened to enough blather from the Minister for the last three years and I will not listen to any more. All we get from the Minister is blather. We get no substance because it is all blather.

The Deputy did it himself and he did it badly.

We get rubbish from the Minister on a constant basis.

Order, please. I ask the Minister to refrain from making disorderly remarks.

I will not put up with any more rubbish from the Minister. The Minister is directly culpable for the situation now arising because she did not have the courage or the ability to do her job.

Who appointed the telecommunications regulator? The Deputy did.

What did the Minister do with the telecommunications regulator?

We cannot have a discussion on that issue.

You flogged the rest of the shares to an unsuspecting public and you claimed that was also a good job.

The Deputy should ask Deputy Spring.

I ask Deputy Stagg to address the Chair. I ask the Minister to refrain from making provocative remarks.

She appointed him as well.

I did and I am proud of it, but the Deputy does not seem to be.

Why is the Minister raising it if she is proud of it? The Minister is directly responsible for this situation because she did not have the courage to do her job. We will have power cuts because we will not have the capacity to generate electricity. She accepted a half baked legal opinion that she could not allow the ESB or anyone else to build power stations in time to prevent power cuts. We now have the spectacle of the ESB importing generators from abroad which are normally used to power circuses. The ESB is bringing generators around the country on lorries like a circus because the Minister has not done her job. The tariffs for the ESB were nicely kicked to touch because they are a hot potato for the Minister to regulate.

I said I would not increase them. I made a decision.

She said she would not agree the amount until she had appointed a regulator.

I said I would not increase them and I will not do so.

She did not have the courage to deal with the issue, although that is what she is paid to do.

Why does the Deputy want increased prices for ESB consumers?

A similar situation has arisen in transport. The Minister examined Luas to death. As a result, not a shovelful or a spoonful of work has been done. Luas has been abandoned by the Minister.

The Deputy is annoyed it is going ahead.

All that is left of Luas is a line going from one place to another and nowhere else.

The Deputy is wrong.

All that is included in Luas after the Minister's examination to death of this issue is a line from Tallaght halfway into the centre of Dublin city because she was afraid.

The Deputy is annoyed it is going ahead.

Can I make my speech without the Minister constantly interrupting me?

I appeal to the Deputy to confine his remarks to the content of the Bill before the House.

What I am saying is relevant.

I also appeal to the Minister to refrain from interruptions.

I will find it difficult but I will try.

All we have got from the Minister are plans but no action. We could wallpaper the House with the plans the Minister has produced.

The Deputy is sorry it is going ahead.

In fact, she did not produce any of them. She used taxpayers' money to pay high prices to consultants to get plans which will not be used for anything because as soon as she has a plan she appoints more consultants for the next phase of that plan. That is what happened with Luas and the power stations.

Is the Deputy sorry Luas is going ahead?

I ask Members to confine their remarks to the Bill before the House.

I want to answer the Minister's question, given that we seem to be having question time in the wrong direction across the floor. Luas will not go ahead. It has been abandoned by the Government. To satisfy the Minister and to save her face it has allowed one piece of it to go ahead from Tallaght as far as just past the Red Cow.

I cannot allow a discussion on Luas.

On the Order of Business—

We have moved on from the Order of Business.

On a point of order, the three Luas lines are going ahead, the money has been provided and an announcement has been made.

That is not a point of order.

It is a point of truth.

That is not provided for.

This Bill deals with airport charges, which is another hot potato. The Minister did not have the courage to deal with them.

I raised airport charges. The Deputy should ask Michael O'Leary.

She fudged, dived and dodged but we did not get any action. She appointed a regulator without legislation. The taxpayer is paying the regulator but he has no authority or power. The Minister should be surcharged out of her salary for making a decision to pay a public official who cannot do his job. She had no authority to appoint a regulator until this Bill passed both Houses of the Oireachtas but, strangely, she appointed a person to a position in which he cannot operate. None of the aspects of his office can come into operation until this Bill is passed and it is a long way from being passed because there are major flaws in it.

I ask the Committee of Public Accounts to examine the fact that a highly paid person who has been appointed by the Minister without authority cannot do a job to which she suggested he should be appointed. Perhaps she might tell us in her reply why this person was appointed in advance of the legislation. Since he cannot carry out his duties I presume he is sitting somewhere drawing down approximately £90,000 a year, the same amount as paid to the Taoiseach, for doing nothing. Taxpayers' money is being thrown down the drain.

I had Cabinet approval.

The Minister will have an opportunity to reply to the points made.

I do not know if the Minister has the authority to waste taxpayers' money on appointing people who cannot do their job because the legislation is not in place. I ask the Minister to address that point. I do not care if she had Cabinet approval because the Cabinet could also be wrong. There has been a waste of public money since that person was appointed.

The Minister is effectively refusing to do the job she was appointed to do. Sometimes I think she is afraid to do the job.

Afraid of you?

Sometimes I think she does not know how to do the job, while at other times I think she is incapable of doing it. She has sold off large tranches of public assets to get the problems off her desk. She has transferred authority to non-accountable regulators to get problems off her desk—

As the Deputy did.

—because she did not have the courage to deal with them.

Why did the Deputy do it?

The Minister and the Government have no policy position to justify either the sales or the appointments she has made.

Why did the Deputy appoint a telecommunications regulator?

The Minister should show good example and cease interrupting.

Can the Minister justify this? Can she tell the House if she had an agreement with the Government about where the money from the sale of State assets would go or did it just go into the black hole? Did she attempt to ring-fence that money for a purpose, and what did she do with the money the Government got from the Telecom sales? Is it true that, arising from her activity in this area – selling State assets without a policy, a position or anything else to justify it – the money that the Minister effectively took out of people's pockets has been invested in foreign economies and is not invested in Ireland?

I do not invest Irish money.

The Minister has a responsibility for everything the Cabinet does, not just for her own narrow brief. There is Cabinet responsibility for every action taken by the Cabinet. In the preparation of my speech I put a note in which reads, "Don't expect an answer from the Minister". I do not expect an answer from the Minister. I expect a lot of old blather, which we have been listening to for a long time.

I would be delighted to—

The Minister will get her opportunity to reply to the debate in accordance with Standing Orders, but not otherwise.

Thank you, but I would like to put on the record that I wish to answer Deputy Stagg.

The Minister can do that when the time comes.

Apart from the cowardice I have been describing, the Minister will not make a decision, especially any decision that might be unpopular. This is essentially dishonest legislation, and that is apart from the cowardice.

In bringing this legislation forward to the House, the Minister is deceiving the House and the public. The Bill is, in reality, a precursor to the proposed privatisation of Aer Rianta and Aer Lingus. It is the Minister's first step but it is only one part of her plan. She does not have the courage or the political honesty to say so and to justify her plan.

Yes I have.

We have not heard her saying so. She said this is simple legislation.

I read her contribution again last night to remind myself, and she did not refer to the fact that this is a first step in her plan—

It is not.

—to privatise Aer Rianta.

It is not.

If you could get rid of the Progressive Democrats, you would have it privatised in the morning.

Order, please. I appeal to Deputy Stagg first to address his remarks through the Chair and I once again appeal to the Minister to refrain from disorderly—

I simply must answer when he is—

As I pointed out, the Minister will have the opportunity to answer all the matters that any Deputies raise when the time—

Deputy Stagg is peddling lies.

I ask that that remark be withdrawn.

He is peddling untruths.

I assume that is a withdrawal of the word "lies".

Whatever way you like to take it.

I take it that is the Minster's interpretation. Deputy Stagg, without interruption.

This Minister does not have the ability, the courage or the political honesty to do what I have suggested, and that is—

Deputy Stagg has some courage.

—telling this House her real plans – the privatisation of Aer Lingus and Aer Rianta if she gets the opportunity.

Deputy Stagg has some courage.

The Minister must refrain from interrupting.

It is a very strange situation where the Progressive Democrats are actually preventing a Fianna Fáil Minister from privatising Aer Rianta. There are parochial interests in that and that is why the Progressive Democrats are—

Does Deputy Stagg ever look at his own courage?

The Minister should cease interrupting.

Labour is opposed to privatisation of either of these strategic national assets. If the Labour Party is in Government after the next election, which is a possibility—

Distinctly not.

I am sure the Minister probably will not be in Government anyway. She might be on the back benches—

Deputy Stagg will not be in Government and he will never be at Cabinet.

—but I am sure any sensible Taoi seach will get rid of her. They will have seen through her at this stage.

He will never be at Cabinet.

Order, please. If these interruptions continue I will have no option but to suspend the sitting.

Yes. I agree.

The interruptions are coming only from you.

No, they are not.

I am trying to make a speech.

Deputy Stagg, address your remarks through the Chair. I again appeal to the Minister to act in an orderly fashion.

Just so that the Minister is fully aware of the rules of the House—

Deputy Stagg need not fret. He will never be at Cabinet.

I am making a Second Stage speech and the only interruptions are from the Minister. There are no interruptions being made by anybody else. I am not interrupting you. All the interruptions are coming from the opposite side of the House.

Deputy Stagg will never be in Cabinet.

Please direct your remarks through the Chair.

We are dealing in this Bill with regulations and the broad issue of regulation therefore arises. The Minister pretended to debate this issue in a paper she produced recently in which she said, or the officials who wrote the paper for her said, that ownership excluded regulation. The State were the owners, therefore the regulators had to be independent. Lip service was paid by the Minister about accountability and democratic deficits arising from taking the authority out of this House and out of the Minister's office and giving it to people that are unaccountable.

Which Deputy Stagg did.

Yes. I have talked about that since. So the only regulation that was required was State utilities. Strangely, private monopoly groups or major interests did not need regulation. The political dishonesty is that the Minister, knowing full well that she intends to privatise the companies, first put in an independent, non-State regulator.

Is that why Deputy Stagg put in the telecoms one?

Having done that, she then knowingly hives off the ownership.

Is that why Deputy Stagg put in the telecoms one?

No. I did not do that. I do not want to respond to interruptions, a Cheann Comhairle.

The Deputy should not respond. The Deputy should cease—

Could you do something to stop the interruptions? Could you ask the Minister to leave the House if she will not behave herself? More blather and rubbish.

I am laughing at the Deputy.

We appointed a regulator because we were retaining a company in State ownership but this Minister is dishonest in so far as she is actually appointing a regulator before she privatises. The State and the people then lose through the Minister's office—

Why did Deputy Stagg do it?

—the right to either ownership or regulation.

Why did Deputy Stagg do it?

All of the benefit of either ownership or regulation and the controls they give both the State and the people on whose behalf the State operates are lost.

Why did the Deputy appoint one?

We believe there is a need for independent regulation and for competition in the provision of services.

There can be a case for partnership and alliances but there is no case for the mindless sale of people's strategic assets. There is a requirement on the Minister and on the Government for transparency and political honesty in the way they are handling the State utilities. I am afraid the Minister is rather short on that commodity.

On a point of order, I cannot be called dishonest. If Deputy Stagg is implying that I dishonestly had anything to do with—

That is not a point of order.

—the money in State sell-offs, that is an untruth and I will not stand for it.

I am not saying that, and the Minister knows it. I am saying she is being politically dishonest in so far as she is only telling half or less than half of the story to the public.

That is a different matter. Why did Deputy Stagg appoint the telecoms regulator?

We then have the myth of the inefficient State companies. They do not work. That is a myth but Fianna Fáil packed the boards of State companies with political hacks who were opposed to the very concept of State enterprise.

What about the appointments made by the Deputy's party when in office?

Any appointments the Labour Party made were of persons favourably disposed to State enterprise, whereas the Minister appointed people to the boards and to the position of chairman of State companies who were diametrically opposed to the concept of State companies. Then she wondered why they were not working properly.

What about the people the Deputy's party appointed when in office?

Traditionally the enemies of State companies were appointed by this Minister and Fianna Fáil to the boards of State companies and to the position of chairman of those companies.

Will the Minister cease being disorderly?

The Minister appointed leading Irish capitalists to the position of chairman or chief executive of State companies and what did she think they would do? Imagine putting—

What did the Deputy think the people appointed by his party in office would do?

I appeal to the Minister to cease being disorderly.

What did the Deputy's party think the people it appointed would do?

It is unprecedented for a Minister to continue to be disorderly when appealed to by the Chair not to do so.

It is not unprecedented for this Minister to do so. We have to put up with this blather and rubbish from this Minister every time we come into the House to make a speech on her area of responsibility.

We have to listen to dishonest auld gab from you.

Having packed the boards with her hacks—

Which you did.

—and having put chairpersons in who were diametrically opposed to State enterprise—

Which you did.

—she wondered why the State companies did not work properly. She starved the companies of capital—

Which you did.

A Ceann Comhairle, I plead with you to ask the Minister to allow me make my speech.

The Chair is doing its utmost to—

Restrain me.

Behave with a little decorum for a change.

It is important to stand up to a bully.

Will the Minister please desist?

This is the national Parliament and the Minister is doing the bullying.

You are the bully almighty.

I am trying to make my speech.

I did not recognise it as such.

The Minister starves these companies of capital and then she criticises them. A good example was CIE for which she is responsible. She reduced the money available to it despite all—

So did you, massively.

—her promises that she would do otherwise. There were expensive plans but not action or money.

The Deputy has two minutes left.

Good, I had better get ready to shout again.

There is much more I would like to say, but I will deal with it on Committee Stage.

I want to refer to duty free sales. The Minister referred to this in her speech and I be grateful if she would let me speak without interruption. She was responsible, as a member of the Government in 1992, for making a decision at European level to abolish duty free sales all over Europe.

That is a complete untruth. I was not in Cabinet then.

It is true. The Minister and the Government made a decision to abolish duty free sales.

On a point of order, I was not in Cabinet in 1992.

She refused to use the Irish veto to stop it. Fianna Fáil in Government accepted a decision to abolish duty free.

I was not in Cabinet in 1992.

The Minister will have her opportunity to reply to these points.

The Minister was a member of Government at the time.

But not of Cabinet.

—and she had collective responsibility for the decision.

I did not.

Then we had the charade of the Minister—

I was not in Cabinet then.

—who had the neck, the cheek and the nerve, having taken part in the original decision to abolish duty free sales—

I was not in Cabinet then.

—to go around from one capital in Europe to another embarking on a mock crusade.

I was not in Cabinet then.

Her conduct in the House is scandalous. She is preventing a member of the Opposition from making a speech. It is nothing new for Fianna Fáil to do that. A Ceann Comhairle, I should be protected from the Minister who is preventing me from making my contribution.

The Deputy should now conclude.

This Minister embarked on a mock crusade around Europe—

I was not in Cabinet then.

—to try to reverse her decision. Those in the European capitals must have been laughing at her.

They were laughing at you.

They were puzzled why she made the decision in the first place and then went around the capitals trying to ensure it was undone. She failed to reverse the decision—

The Deputy should conclude.

—and now she is trying to take credit for it. Due to the interruptions I did not get to say most of what I wanted to say.

That is powerful.

There is a view that airport regulation arises only in the context of privatisation. That is obvious from some of the contributions. The issues of privatisation and regulation are inextricably linked, particularly in the current debate, but they are separate issues. The debate would be more constructive if they could be kept as far apart as possible, although I must confess that occasionally I stray into mixing them as it is almost impossible not to do so. Regulation is just as valid—

The interest of the Labour Party in the debate is huge – empty benches, empty minds.

—for State-owned airports as it is for privatised airports.

The processes of deregulation in the US and Europe are interesting and, in many respects, the results are different. That is something we need to learn because we tend to learn from the experience of our neighbours in the area of regulation and similar areas. We look in particular at the experience of the UK—

Empty Labour Party minds, empty Labour Party benches.

—which is the forerunner in the area of regulation, but the results in the US and Europe are quite different. Some of the results in the UK are quite different from what had been anticipated at the time of the White Paper. Dramatic changes occurred in structure and organisation from deregulation in the US in 1977 and 1978. The results in Europe were far reaching, but were a good deal short of being as dramatic.

Airport infrastructural constraints are crucial in determining the long-term development of the air transport sector. To date liberalisation has tended to be focused on airlines and routes rather than on airport capacity. In many countries capacity is still controlled directly or indirectly by the State or Government.

Airport pricing is the issue that tends to be raised in this context all the time, but there are many other issues that are by no means ancillary. They are central to the area of regulation. Over time pricing policy influences the average size of aircraft using airports, the balance between short, medium and long haul services as well as the distribution of all traffic across an airport system, whether within a nation or across the EU. This legislation has the potential to be very far reaching in its impact and import. It has the potential to be a major tool for developing Irish aviation policy for the next ten, 15 or 20 years. It deserves much care and attention. It is an excellent document as drafted, but some parts might need amending, and the Minister has indicated she is open to that.

While liberalisation has encouraged traffic growth, lack of capacity at larger airports has acted as a barrier. That may be close to happening at Dublin Airport, although I do not accept that Dublin Airport could not be organised to take much more traffic than it does at present. I would like the regulator to be empowered effectively to transfer business to the less congested airports. I am speaking from a regional viewpoint in that Shannon is the obvious candidate for any business that might be diverted. Quite an amount of business comes into Dublin Airport that does not benefit Dublin or its hinterland and effectively has very little business there in the first place.

I mentioned the UK airports legislation of 1986, which followed the introduction of a White Paper in 1985. It would be of interest to anyone with an interest in aviation. I read it before the summer, but it is now in a large box in transit between where I used to reside and where I am about to reside in the building. I have not had a chance to update myself on it, but I remember parts of it and memory is not always entirely reliable. It was a thorough document and could usefully be visited by anyone who chooses to have an input here. I know the Minister has examined it in considerable detail. That document and the UK experience arising from it, some of which was negative, has had a positive impact on this legislation. One of the considerations in the UK at the time – perhaps the driving force – was that airports had a large funding requirement, particularly around London. Some mistakes were made in addressing that which we do not necessarily have to follow. Anyone looking at the situation in Dublin would say that the current infrastructural problems were predictable seven to ten years ago. They were predicted accurately by Aer Rianta in 1995 and 1996 when it made proposals to the then Minister for massive infrastructural improvement. There are questions as to why the Government of the day did not allow Aer Rianta to go ahead with its proposals, as it would have been a lot cheaper and it would have avoided the current difficulties. In general terms we need to look at why that mistake was made here if we look at the mistakes made in the UK.

It is worth bearing in mind that on a recent Saturday 140 charters used Dublin Airport. There is no doubt as to the need to control and co-ordinate the slots there. One of the worst examples was that of almost 400 pilgrims – certainly travelling in a full wide-bodied aircraft – being transported to Lourdes in the middle of the busiest time for the airport, when the transatlantic flights were being dealt with along with a huge number of European flights. That was dictated by the fact that Aer Lingus's scheduling meant there was a free wide-bodied aircraft available at that time, but it was most disruptive for the airport.

United Airlines, which flies from the United States, has a coach-sharing agreement with British Midland and many of its passengers backtrack into Ireland. British Midland only serves Dublin Airport, so of necessity those passengers must come to Dublin. It does not benefit Dublin or the country to have large numbers of American tourists landing in Dublin Airport and hiring a car to drive to Killarney or Connemara; it is counter-productive. Northwest and other airlines are likely to follow that precedent, but it is foolish for this or any other country to dictate where passengers arrive. One of the areas we are failing to address regarding the huge urban conglomeration of Dublin is that business is being foisted upon it that does not benefit the city and never will. It contributes to further congestion to have people arrive in Dublin who do not want to be there in the first place but who did not have anyone to explain that there were other possibilities open to them.

I am not referring only to Shannon in regard to such business, particularly European and British flights. These flights could come through Knock, Cork or other regional airports in many instances. That would have the effect of better distribution of income in the country and would also reduce congestion in Dublin. However, I would not envy the Minister her job in persuading greedy Dublin business interests that that was desirable. I do not think she or anyone else would succeed in doing so if that were tried, but in the interests of the country it needs to be done.

Safety issues have been mentioned and the regulator will have a role in this regard. I do not accept that any airport authority would deliberately place safety issues at the bottom of its agenda, but it is good legislation to ensure that safety issues are dealt with up front in a fitting manner.

Particular sections of the Bill struck me before the recess as needing amendment, but I have mislaid my notes and must rely on what I can recollect. Section 23(2) would benefit from the insertion of a sentence along the following lines:

In order to render the cost of regulation transparent to all users, such part of the levy as is imposed on an airport authority shall be an incremental and identified sum which shall be charged in addition to the airport charges and shall be deemed to be approved by the Commission.

This is a good idea in the interests of transparency and is also fairer to the airport operating authority. Transparency regarding charges is a useful principle for any legislation and I will deal with this further on Committee Stage and in talking privately with the Minister. This would be a useful amendment. The cost associated with economic regulation is a legitimate externally imposed expense over which the airport authority clearly has no control; all this does is to make the process visible.

Section 33(4) uses the term "may", stating that any determination in relation to any one of these airports may be made by reference to the aggregate of amounts, but the word "shall" would be more appropriate. The term "may" clearly grants a discretionary power to the commission to treat the airports operating under the management of a single airport authority as an entity or as separate individual airports for the purpose of regulation of airport charges. This is a very important issue for the development of Cork and Shannon airports and for regional development generally. In this context, the discretionary power of "may" would be better in the definitive form of "shall". It is important that the three Irish airports are regulated as an entity. Anyone who has looked at the UK experience will see the enormous benefits that flowed from this system there and that could well be transposed into Irish law. This is required in terms of market stability and regional development policy. Cork and Shannon airports have, of necessity, smaller traffic volumes than Dublin. Regulating the three airports as a single unit will ensure that airport charges at Cork and Shannon are competitive compared to Dublin Airport.

A particularly significant issue for smaller airports is that the relative scale of an expansion programme can be quite large in comparison to a larger airport, though in fairness and common sense, it is clear to everyone that by far the largest expense in infrastructural development in the short term will arise in Dublin. Clearly what I am suggesting would not be likely to have an impact in the short term, as I presume all of Dublin's profits will be taken up with the cost of dealing with infrastructure there. However, there will be a time in the future when it will be possible for a larger and more profitable Dublin Airport to subvent the other airports without undermining itself, ensuring a spread of traffic in the interests of the nation. Undoubtedly there will be people with other things to say about that here and in other fora. There were difficulties with this in the US and UK which were overcome by having the legislation more specific and by surviving court challenges. I am confident the same situation will obtain here if and when the time comes.

Section 33(d) refers to “the level of income of an airport authority from airport charges at the airport and other revenue earned by the authority”, but I would include “airport” between “other” and “revenue”. I am concerned that revenue earned by Aer Rianta from Great Southern Hotels, Aer Rianta International or other sources we have not yet even thought of ought to be disbursed at the discretion of the authority as an incentive to innovation. I can see some merit in including it in the central fund under the regulator, but the effect of the UK legislation was twofold, effectively discouraging investment in infrastructure because of the pricing formula used. That formula militated strongly against the authority putting in the type of infrastructure it might have chosen had a different system been in place. Aer Rianta has displayed great competence and capacity for innovation and I would not like the regulatory regime to curb that in any way. This change would be beneficial in section 33, though I can see there would be a counter-argument that this profit, if it arose, should be included in this sense. However, the innovation inherent in Aer Rianta would be better encouraged by taking the route I suggest.

I have mentioned the interesting UK airport policy White Paper of 1985. They had huge difficulties devising a system of regulation because at the time there were effectively no precedents and they were in uncharted territory. The US experience which preceded it by ten years was quite different and not really in the area of regulation. They set out clear objectives, the first of which was to fulfil the Government's obligations under the Chicago convention and various bilateral agreements in operation at the time and to ensure that airport charges would be fair and reasonable.

When I mentioned airport charges originally I said that we attach perhaps too much significance to them. They get a lot more media coverage than they warrant and maybe that is inevitable because one or two of the players like to highlight them now and again—

They like to hear their voices.

—to their own benefit, I suppose. Maybe private sector companies believe that is the way to operate and the way that profits them best but it would be very foolish of us to fall into the trap of going along entirely with that because there are other considerations that are just as central and as far-reaching in their effects.

The Government also wanted to prevent airports abusing the monopoly power which they effectively enjoy. The BAA position was very similar to the current Aer Rianta one in that regard because it effectively controlled the large airports, including the London airports of any consequence and the four Scottish airports. It was very important that that be done and it is important that the same is done here.

The regulator was put in place to support the Government's policies for aviation. That may well turn out to be the most important role arising from this legislation. The UK considered leaving airport charges to the competition authority, for example, but it decided that it was such a specialised area that it was far more sensible to have somebody with the particular skills dealing with it. It is interesting that the appointee in Ireland has American experience. It will be very beneficial and he will have an experience which he will bring to bear while obviously operating within the constraints of the legislation which will benefit Irish aviation.

It is interesting to note as well that a country like New Zealand, which is in a different hemisphere and has had quite similar experiences to our own, has decided against using regulation. It would be useful to keep an eye on how things go there. It is also in a similar position in the sense that Melbourne and Sydney are relatively close and have the kind of unbalancing effect that, in many respects, the Manchester and London airports have on aviation in this country.

One of the features of the UK policy was the price cap fixing with sub-formula for some of the other airports. Distortions arose from that which were unhelpful and which I will mention in a moment. Only traffic charges were regulated but commercial revenues at airports were taken into account in the single till system, and that seems reasonable. It provided for a review every five years with the Civil Aviation Authority as the regulator. It is certainly worthwhile having a review mechanism and that will be important here.

When the EU went into the area of deregulation, the expectation was that the outcome would be almost entirely similar to the US experience. The outcome was dramatically different in that some of the effects of deregulation in the US were not transferred to Europe, particularly in terms of the quick provision of low cost services from the existing carriers. The experience in Europe was that the low cost airlines entered the market around that time basing their formula on the US experience or those already in existence like Ryanair grew very dramatically and had, of course, a very large impact. However, the control of slots in airports such as Heathrow – Heathrow is not the only example and it is unfair to single out the UK because the same applies almost universally across mainland Europe – turned out to be much stronger, more far-reaching and more powerful than perhaps those in the business of liberalising the European market had anticipated. I think there have been three tranches of European liberalisation which have had a very substantial effect. The Irish Government was one of the first to enter into the spirit and the actuality of pursing that route along with the Dutch and the UK Governments.

The result after 13 years of price regulation in the UK has been that landing charges at Heathrow and Gatwick have been reduced by 50% in real terms.

They are still more than ours.

Yes, the Dublin charges stand at about 70% of that which is an extraordinary phenomenon in the context of the changes that have taken place. It points to Aer Rianta's com mitment in the area of pricing. Of course, it found it much more difficult to use the system of regulation to further Government policy objectives. It certainly found it difficult to use it to promote maximum competition between airlines mainly because, as I said, the airlines already had those slots and they were big European players – national airlines in most instances. I welcome this legislation and look forward to further discussion on Committee Stage.

(Mayo): Like the majority of people who have contributed, I also welcome the Aviation Regulation Bill, 2000, as an important milestone in a hugely important Irish aviation industry. The Bill is important in that the regulator, when this Bill is given legislative effect, and the commission will regulate five key areas of airport business – airport and traffic control charges, ground handling service providers, the granting of operating licences to air carriers set up in this country, the administration of rules governing the allocation and take off of landing slots at airports and the licensing and bonding of travel agents and tour operators.

The Bill deals with airports the passenger throughput of which is in excess of one million passengers per annum – in other words, Dublin, Shannon and Cork Airports. Will the Minister clarify whether a regional airport, for example, which achieves a passenger throughput of one million will come within the jurisdiction of the regulator? Is one million passengers the benchmark?

By the end of this year more than 14 million passengers will have passed through Dublin Airport. We have already spoken about conditions at Dublin Airport on the Order of Business. For many people passing through Dublin Airport, it is a harrowing experience. Many who pass through Dublin Airport would never do so again if they could help it because too many people have had to endure slow baggage delivery onto carousels and missing luggage has been the lot of too many passengers arriving here.

What other airport would allow a situation where arriving passengers make their way to the pavement outside the arrivals door only to find there are no taxis and they are left languishing in long queues waiting for their turn to eventually come? It is simply intolerable – it is not fair that somebody having travelled half way around the world is left to queue, literally at a snail's pace, for the trickle of taxis that will eventually arrive. It gives a terrible first impression of this country and there is no excuse for it. As has been asked in the past, why has airport management not dealt with this long-standing problem? It knows, for example, the number of scheduled flights and the approximate number of anticipated passengers, yet a passenger, having travelled around the globe, arrives at the front door only to find that at the end of their journey, there is no taxi at Dublin Airport.

For arriving passengers, it is the queues at the carousel and for taxis and for departing passengers, it is the hazardous queues at the check-in. There are 16 newly located computerised Aer Lingus check-in desks at Dublin Airport. I was at the airport at 2 p.m. on Wednesday last and in spite of the long queues, many with elderly passengers, only five of the check-in desks were staffed. By 2.15 p.m. things had improved somewhat but the queue was now two and three deep and stretched from the check-in area almost to the front door of the airport.

Were they Aer Lingus desks?

(Mayo): Yes. As the Minister knows, the new desks have not been opened because of the dispute but I am talking about the existing set up where there are 16 computer terminals. Why should passengers be left queuing for so long? Why has a speedier, more efficient system not been put in place? What is the point in having 16 check-in desks if you do not provide 16 staff to man or staff them? It is bad enough to have to queue for a long period but because of the way the queues are organised or disorganised, there is a constant criss-cross flow of traffic, with passengers with trolleys laden with luggage trying to get from one location to another.

An aspect of Dublin Airport which is of particular concern is the marked absence of adequate exits in the event of a fire or bomb scare and at a time when the most modest of community halls with their weekly bingo sessions are rightly being asked to comply with stringent fire regulation. One is struck by the fact that the only visible exit at Dublin Airport with thousands of people crowded in at any time and catering for, as has already been said, 14 million passengers per annum, apart from those waiting to greet or see off passengers, is one set of arrival doors. I accept that Dublin Airport is the victim of a failure of foresight and forward planning and is now playing the difficult game of catch-up. However, management and the airlines will have to get their act together. Customers and consumers – the travelling public – are entitled to the same level and quality of service they would get in any other capital city air terminal.

I listened to the Minister on RTE's "Five Seven Live" two weeks ago when she faced questions on the chaos at Dublin Airport. There is much talk of the designation of the airport as co-ordinated. However, no definite improvement is visible or guaranteed, nor is a time scale forthcoming. Last week's Sunday Tribune reported that the chairman of the Dublin Airport scheduling committee wrote to the Minister stating that a move to full co-ordinated status was unnecessary and would lead to a reduction in traffic using the airport. In her reply to Second Stage the Minister might comment on the content of the chairman's letter and whether he sought a meeting with her and/or her Department to discuss the matter.

This is a national political issue given that such a large segment of the population passes through Dublin Airport every year. Millions of Irish people travel through Dublin Airport every year as a result of the Celtic tiger, deregulation, competition and the welcome resultant cheap air fares. These passengers see at first hand how chaotic the airport is compared to other international airports and they will not accept such chaos any longer. Action and not talk is what is required.

I will restate Fine Gael's policy on the privatisation of Aer Rianta. The two consultants' reports on the future of Aer Rianta made their conclusions on the narrow basis of the best interests of the company's balance sheet. Fine Gael believes that our three international State-owned airports at Dublin, Shannon and Cork are as vital a part of our national infrastructure as the ports of Dublin, Dun Laoghaire, Cork or Rosslare, or the N5 or N11, yet there are no proposals to sell off our ports or roads. Why should we contemplate selling off such a vital component of our transport infrastructure? The key question has to be whether it is in the national interest or in the interest of consumers to sell off such an asset.

In Britain and across Europe privatisation of state enterprises has worked well but the experience has been mixed in Ireland. The Eircom debacle speaks for itself, an issue to which I will return during the forthcoming Question Time. However, privatisation became badly unstuck in Britain when it extended to public utilities such as water and rail track. Dublin Airport is not only a public utility; it also has an undisputed monopoly. Aer Rianta's latest annual accounts indicated that the airport made a profit of £48 million making it one of the most profitable airports in the world, despite all the chaos. This figure was achieved before most of the Ryanair discounts were abolished on 1 January, thereby increasing landing charges from £4 to £8 per passenger. Dublin Airport services at least one third of the population every year. A public monopoly is bad enough but a private monopoly in such a vital sector is totally unacceptable.

Cork and Shannon Airports have been rightly referred to as very important entities in their own right and there is no logical argument for selling them jointly or separately. Both are three hours' drive from Dublin and service very different and viable catchment areas. Taking everything into consideration I am firmly of the belief that our three Aer Rianta airports should be retained as a single public entity. A £48 million profit is clear evidence that Dublin Airport is literally a licence to print money. Why should that profit and resource and all that public money be handed over to a private individual or consortium? Surely the facility and its great potential should be retained, properly developed and managed for the benefit of the tax paying public.

The public policy context has been forgotten in the debate on the best future and strategic options and direction for Aer Rianta. There are two key policy issues. First, national air access for an island economy such as ours and, second, regional policy. The success and continued growth of tourism depends on competition and high quality, frequent, air services. If the Government owns the airport it can decide to retain a policy of low landing charges and aggressively market new routes to promote and sustain overall national economic benefits for tourism and commerce. However, this is not possible where such a vital asset is handed over and owned by private shareholders.

Deputy Killeen spoke about the possibility of Dublin Airport assisting the enterprises, welfare and development of Cork and Shannon Airports. I hold a similar view. I wish to see the profits from Dublin Airport being used to benefit Cork and Shannon. Shannon Airport has been the linchpin on which the regional development of the south west has been built. Such regional considerations would not figure in the thinking of private shareholders if the airport was handed over to a private individual.

Those who argue for the IPO to meet the capital needs of Aer Rianta continue to advance the argument that the State cannot invest in our airports. No one has shown me where the EU stipulates that a state cannot invest in airport development. We have a conventional public capital programme which invests in different forms of infrastructure without difficulty or stricture. I am concerned that Cork and Shannon Airports would be left on the hind tit as regards investment by a restructured Aer Rianta in a post-privatisation environment.

One must question one of the basic assumptions in the consultants' report which states "It is our understanding that direct Exchequer financial support to Aer Rianta is not a funding option". I do not believe it is contrary to EU or other rules to make such state investment in airports. The availability of State capital for the core development needs of Shannon, Cork and Dublin is not a problem for the Exchequer in the prevailing, positive economic climate. However, Fine Gael believes the arguments of the national interest in respect of Aer Rianta's role in Dublin, Shannon and Cork do not apply to Aer Rianta International. We have a definite view on the retention and State-ownership of Aer Rianta nationally but we have no objection to Aer Rianta International being wholly or partly privatised and the proceeds being used to fund domestic core business.

The emphasis in the Bill is on the State-owned airports but it does not address the crucial issue of regional airports in the regional and national economic contexts. Regional airports have a dimension in terms of the regional and national economies. Despite much initial scepticism about the future or success of regional airports they have defied the critics. They work on very tight budgets and many have shown commendable resourcefulness. I am particularly concerned about the welfare and future of Knock airport. The airport was built to international standards, has a 7,000 ft. runway and an excellent terminal building. It could not be better located on the intersection of two national primary routes – the N5 and N17.

Knock Airport is 20 years old. The view was that it would provide the economic fulcrum for the development of the region but, unfortunately, it has failed to realise its potential. From the point of view of the development of tourism, the airport is not getting the tourists in. From the point of view of providing a cheap service for the thousands of emigrants from the west there is something wrong when it costs £300 to fly from Knock Airport to Britain and one can fly to San Francisco for £25 less. I do not want to be critical of the management because they are doing their best. However, there is a limit to what this management can achieve. There is an urgent need for an injection of further management and management skills into the airport. I commend the management for taking the airport through its embryonic and developing stages to its current stage of development. However, an airport of this size and potential with six or seven flights a week cannot survive in a modern competitive environment.

That is why I urge the Minister, when there is currently huge expectation in relation to the airport which is not being met, where a substantial amount of taxpayers' money has been invested in this resource, where ongoing marketing grants are being given to the airport, to look objectively at Knock Airport to see what can be done to improve the quality of service. The Minister has given approval to the public service dimension, but something will have to be done as there is huge public concern. Monsignor Horan's dream was that this would be the people's airport. It is not, because it is not delivering a quality service.

Deputy Yates indicated that he would bring forward various amendments on Committee Stage. I will mention two because I will bring them forward now in my own name.

The first relates to air safety standards. The Irish Airline Pilots Association has on more than one occasion expressed concern about the smoking regulations on airliners. Currently, under Statutory Instrument 62 of 1986, carriers must take all reasonable steps to prohibit smoking. However, smoking is not an offence. It should be. The strongest possible penalties, financial or custodial, should be handed down. Imperilling the safety of 300 people on an airbus or 50 on a commuter plane is much too serious an issue. We have been given graphic details of what has happened on occasion. People have gone into the toilet, removed the anti-smoking device, thrown the cigarette into waste paper, and at times cabin crews have had to fight fires in mid air. The consequences of this are quite obvious. We will be tabling an amendment to make it an offence to smoke when signs are illuminated. In addition we are proposing a financial and/or prison penalty.

The other amendment relates to the question of disruptive behaviour, which has arisen on many occasions and is unfortunately becoming increasingly frequent, with obvious consequences for passengers and also from the point of view of the huge costs incurred by having to divert because somebody has taken too much drink or just decides to be disruptive on a plane. Staff have been assaulted, even sexually assaulted, on planes. We have to get tough in relation to these two aspects. I will bring forward Committee Stage amendments in this respect.

As a point of courtesy, I congratulate Deputy Higgins as this is the first occasion on which we have been together in the House since he obtained his new position. I am sure we will have many a barney.

(Mayo): It will be like old times revisited.

I propose to share my time with Deputy Daly. I would like also to welcome Deputy Higgins to his new responsibility on the Front Bench.

I welcome this legislation and congratulate the Minister on bringing forward this Bill to provide for a commission for aviation regulation. I thank the people in the Irish Aviation Authority who have served us well, and I wish them the best of luck in the future.

The primary purpose of this Bill is to provide for the independent regulation of airport charges, including charges for terminal services provided by the Irish Aviation Authority. The legislation also provides that the commission will assume responsibility for a number of other aviation functions which are currently the responsibility of the Minister.

There are five policy areas with which the new commission will be dealing: the granting of operating licences to air carriers established in the European Union; the designation, where necessary, of Irish airports as co-ordinated airports under the relevant EU regulations; approval of ground handling services provided at airports; and the licensing and bonding of tour operators and travel agents.

The issue of airport charges has attracted much publicity, very much driven by the airlines. While a reduction in airport charges would be very welcome, one of the main reasons Air Rianta could offer discounted rates was the steady stream of revenue from duty free sales. This is no longer available, although Air Rianta announced that it would roll on until the end of 1999 and give a further six months of discounted rates for the airlines. Obviously airport charges are necessary. The increase in business, particularly at Dublin Airport, has ensured that airlines generally are doing very well here. The Minister's proposal in this area will put this on a stronger and surer footing, now that the independent commission is being set up.

I support the view that smaller airports should be allowed to benefit from the success of Dublin Airport. The tourism industry has gone from strength to strength. However, given that airports can be nervous places and the terms in which I have heard Dublin Airport spoken about, we should be careful to get our facts right lest we put people off flying.

Other State airports would like to see more development, which might improve the regional balance of tourism and transport throughout the country. The points made about infrastructure should be looked at in relation to all airports. I fully support the developments at Shannon. However, the charter business, both at Shannon and Dublin, is often developed at the expense of other parts of the country. I note that charter flights that come to Shannon use a traditional route – people visit the mid-west and come to Galway City, and that is as far north as they go. My constituency, East Galway, does not benefit, nor do counties Mayo and Sligo and the north-west. This should be looked at. The same is true in regard to charter flights to Dublin. Most charter operators say it is difficult to get to parts of the west where people want to go because the infrastructure does not exist. In considering this matter, we should remember that development is needed on a regional basis.

The issue of car parking also needs to be considered. We are pushing people further and further away from the terminal at Dublin Airport through the opening of long-term car parks. This does not happen at other airports. Shannon Airport, for example, has much better car parking facilities. People must bring their cars to airports because there are not enough taxis or buses.

I am happy to see new business at Shannon Airport. Recently when I visited Shannon Airport I noticed there were flights from Shannon to Amman, Jordan. Royal Jordanian Airlines were using that as a base also. That is welcome because new business at Shannon is needed. There is more potential for development at Shannon than there is at Dublin Airport. I have heard Dublin Deputies talking about the need for a second airport in Dublin. I will not get into that debate but obviously we must look to the future and see how that issue will be dealt with. Certainly there are some important issues there regarding car parking and the points Deputy Higgins made about queuing up for tickets at the new desks.

Airlines pride themselves on being the system which gets people from A to B in the shortest time and I have been disappointed, particularly during the holiday period, with my experience in this regard. I have received many complaints from my constituents who when they check into an airport two hours before departure as they are told, find that they are then left sitting on a stationary aeroplane for up to two hours. It is bad enough that sometimes people must wait around for delayed aeroplanes in airports perhaps overnight, but it is very difficult, particularly for families with young children, to have to sit waiting on aeroplanes for long periods. There should be an explanation for such delays. Perhaps the pro vision of slots for takeoff and landing, to which the Minister referred and of which I have heard her speak previously, would go some way towards solving this difficult problem. I suppose it is worse to have to sit on an aeroplane on a runway on Gran Canaria, where it is very warm, rather than on one in Dublin but it is not a pleasant experience in either case. Many people have told me about such incidents. I wonder are airlines just chancing their arm when they state they have a slot, when they know well that the aeroplane in question will be delayed at a resort such as Gran Canaria. These kinds of situations should be addressed and I hope they will be.

Deputy Higgins mentioned the cost of flights from the western region. It is difficult to understand how flights can be so expensive from places like Knock and Galway to European destinations compared to the price of flights from Shannon to the United States, for example. Obviously in some cases in flying from Shannon to Europe one may need to take two flights but the difference in the prices of flights from, for example, Knock to Great Britain and from Shannon Airport to the United States is amazing.

There was a great deal of talk about the location of Knock Airport, but the people got one thing right when they built the airport. They certainly provided a fine runway. Christy Moore even wrote a song about it. In Galway, we may not quite have done things properly because I understand the airport board is still trying to obtain a compulsory purchase order to acquire the remaining lands needed for the runway. The board is very pleased the Minister gave it a marketing grant of £125,000 for this year and it is keen to get increased funding for marketing. However, there is an issue which Galway must sort out for itself, that is, whether it will develop the airport or move to a new location at Oranmore. My colleague, the Minister of State at the Department of Arts, Heritage, Gaeltacht and the Islands, Deputy Ó Cuív, has come out strongly in favour of a new development. If the bigger aeroplanes cannot land in Galway, we will not develop the county's tourism and industry. We need to get that support. I welcome the marketing support grant but the board and the chamber of commerce must ensure that they make the right decision in the future regarding where Galway Airport will develop.

I hope the Minister's new commission will be successful in the future.

I compliment the Minister on bringing forward this imaginative Bill which will play an important role in the development of our airports. I take this opportunity to welcome the new general manager at Shannon, Mr. Bob Goldfield, who will take up his duties in a few weeks and to express my appreciation for the work that was done by Mr. Barry O'Shea and the people involved in managing development of Shannon over the years. The transformation which has taken place at Shannon in recent years has been miraculous. A few years ago nobody could have anticipated the huge expansion in business and travel which was to take place at the airport. There is a great debt of gratitude due to people such as Mr. O'Shea who have been to the forefront in planning and managing the airport. I certainly wish Mr. Goldfield success in his new venture. He has broad experience, not only in the European aviation business but in the international business. I think he will be welcomed to Shannon and I am sure his influence there will continue the expansion and development of the business at Shannon which is thriving as never before.

To some extent this expansion and development is due to the economic upturn which has taken place, but it is also due to our sound aviation policy in recent years and that the Minister has paid special attention to Shannon, although I will not go into the detail of the huge investment which has taken place in the airport.

There has also been huge investment in the Irish Aviation Authority. That authority, which goes relatively unnoticed, has done major work already. It has expanded its operation, it is earning large revenues for the State and it is providing useful employment. It has almost completed its new office accommodation at Shannon and it is certainly providing opportunities in the aviation business which were undreamt of years ago. It is now in competition for other aviation business throughout Europe. This is a welcome development which must be supported.

The establishment of the new commission is timely. The Minister said she will not step back from the operation of that. One of our fears is that the commission would not be as sensitive as the Minister to the needs in the regions and that for this reason there may be a type of Civil Service approach to dealing with the issues rather than one which takes account of the political dimension of issues like the importance of regional airports. For that reason, while we welcome the new commission and wish it well with its work, we hope the Minister will continue to have an influence and if there are some matters not totally in keeping with what was set out as the Minister's intention, there may be ways in which this could be remedied.

The loss of revenue from duty free sales can be remedied. I am somewhat disappointed that, even though it was anticipated that there would be losses arising from the curtailment of duty free sales, it has not been possible to rearrange the sales operations in airports to make up those shortfalls. It is time there was a review of the sales and shopping businesses at airports generally and perhaps a new agency would be put in place which would develop that kind of business because there is an amount of shopping done at every regional and international airport. There are areas outside the European zone where duty free arrangements are still in place. It should be possible for Aer Rianta to make up the short comings arising from the initial fall off. I do not know why it has stopped selling cigarettes and liquor. It baffles me that there are people who will buy cigarettes and liquor whether duty free or non-duty free. When it was clear to Aer Rianta that there would be difficulties in this area it should have had the imagination to take some initiatives in the shopping area. Every business, including the smallest business, has had to readjust its operations to meet competition from the big supermarkets and so on. We now have thriving small businesses running side by side with huge supermarkets. I see no reason Aer Rianta should lose revenue in its shops, sales and catering and in business generally. It should accelerate and develop those areas.

There has been some anxiety about the catering operations but perhaps this can be dealt with on Committee Stage. I am not sure whether the regulator will have any influence on such matters. Nevertheless these are important issues as jobs are at stake. It would be detrimental to the overall economic development if the business opportunities associated with the airline business in flights, sales and catering and all the extra business were to go abroad because we failed to tackle these areas and deal with them effectively.

I shall have an opportunity at the Select Committee on Public Enterprise and Transport to deal with this matter in more detail. I avail of this opportunity to welcome the new commission and wish it well in its endeavours. I encourage it to press ahead with the development we have seen during recent years and to be optimistic about the future. The development of international, local and regional airports is vital given that business and international travel will expand. I see no signs of a recession or a downturn that would affect them to any great extent. We want to open up new opportunities, develop new businesses, establish new jobs and, above all, give the direction to an authority which will ensure that those passing through our airports get to their destinations as quickly and safely as possible. This Bill will be a major step in that direction and I wish the Minister well in getting it though the Houses.

I wish to share my time with Deputy Deasy.

Is that agreed? Agreed.

I welcome the opportunity to speak to the Bill and to broadly welcome its provisions. The Bill is timely. That an independent regulatory commission is being provided for can have many advantages. Given that the question of privatisation of Aer Rianta and Aer Lingus are very much on the agenda it will be difficult for the Minister to tackle the problem of privatisation of these companies. In the interests of the development of air transport to this country it is important that the companies know exactly where the Minister with responsibility stands. If Aer Lingus, Aer Rianta and every other regional management team know where we are going and are aware of the Minister's intentions it is a worthwhile exercise. I hope the Minister will indicate, once and for all, clearly and unequivocally her position and that of the Government in regard to privatisation of Aer Rianta and Aer Lingus.

The Aer Lingus Bill is before the House.

I welcome also the fact that the commission will have responsibility for other areas heretofore within the Minister's brief. A question which occupies my mind coming from the west is that if we hand over those responsibilities, will the commission have the power of decision to make or to create investment in airports? I am thinking particularly of a situation with which the Minister is familiar in County Galway. It has been said that Galway city is the fastest growing city in Europe. It has had phenomenal industrial growth over the years. Most of the companies are American, some indigenous and some others are foreign companies. That industrial growth came about because of the input of successive Governments, the IDA and all other agencies with responsibility for development of industry. Tourism also has grown enormously and has been the lifeline for sustained livelihoods in the west. This may not have happened were it not for the growth in industry. We want this to continue but it necessitates a clear indication from the Minister in respect of the development of air transport in Galway.

Irrespective of what money is put in, Galway Regional Airport at Carnmore simply cannot develop successfully as a quality airport with sustained growth, sustained development and in a way adequate to provide services to a fast-growing city. We now have an alternative in that State lands in the possession of the Department of Defence are available and also approximately 90 acres of adjoining land are available from Galway Corporation. Galway Corporation has positively indicated that those lands would be made available for the development of proper airport facilities for Galway city, County Galway, east Galway and the west.

Other people want to see the development of other regional airports. None of the airports is similar to that in Galway. Access is second to none. All the primary routes converge beside the site. It is in the unique position where it can be served by a rail line to the perimeter of the site. That is a unique opportunity that could be developed. If growth is to be sustained in industry and in tourism in Galway, along the Atlantic seaboard, in the west and in east Galway, it is necessary that a decision be made quickly.

It is privately owned. I cannot make a decision. They have to make the decision.

The Minister must accept she is pushing an open door in regard to the privately-owned land. A decision must be taken at the highest level. I hate to say, but Deputy Kitt said it earlier, we have one Minister of State who says we must have it and have it quickly, and I agree with him. Another Minister in west Galway says we have to support Carnmore at all costs. Obviously there are divisions and different interests in this. That must be rectified and nobody can do that but the Minister. She must take responsibility for it.

What does the board of the airport want to do?

The board naturally wants to continue where it is. It established that airport and the Government provided approximately £4 million support for it last year. That was welcome but the ultimate reality is that the airport can never develop to its proper potential because of the physical restrictions on it. Before any further moneys are invested, a decision must be made on whether to move. The opportunity is now available and the Minister must take responsibility for making that decision.

In property terms I cannot. The board owns it and I cannot interfere with that. If the board comes to me with a decision, I will certainly support it.

That is what I hoped to hear. I welcome the Minister's statement. When clearance is given for the availability of the site, and every indication in that regard has been given—

From the board, I mean.

Well, that is another day's work. I believe the board needs guidance.

I take the Deputy's point and I wish the board would come to me with its ideas.

Hopefully, we can, as public representatives, encourage it to do that and to avoid a situation where, as it now appears, there is division at the highest political level. I hope the Minister can impress upon her colleagues that where we are going should be clarified once and for all. I believe it is important not only for the west but for every part of the county that the airport at Galway city be developed.

The primary purpose of this legislation is charges. The issue of airport charges and costs is hugely important. The commission will have new powers delegated to it regarding the operation of licences and co-ordinating the approval of ground handling service providers at airports. Look at some of the industrial problems there have been at our airports over recent years and at the major controversial disasters related to air traffic, travel operators and the bonding of travel operators. It is welcome that there will be an independent view of these as a result of this Bill.

There were disasters in the recent past with regard to travel agents. It is now possible for airlines to sell tickets on the Internet. Is there any way of regulating that? This country is lucky in that it generally has responsible travel agencies which operate well on behalf of both passengers and commercial interests in negotiating fares with the airlines. Where will this modern technology fit in with regard to regulation? Many people will be aware that one can go on the Internet and book a ticket without the hassle of going through agencies and in the case of certain airlines it can be much cheaper. That is an advantage for many. However, will there be some degree of regulation of privately booking tickets for travel through that medium under the Bill? Huge numbers are employed in the travel agency business in this country, many of them in vibrant travel agencies in small towns. This new facility will encroach on them and will obviously result in a decrease in their volume of work.

Handling agents in airports is another important issue. At present, if a handling agent is unhappy with the conditions in the airport, health or safety issues or general working conditions, the agent can withdraw from the airport and bring it to a halt. There should be some mechanism or back up service to prevent this occurring in future. As we have seen in the past, a lightning strike can stop all movement of passengers through the airport.

I look forward to the Minister clearly indicating her support for the development of a new airport in Galway at the earliest opportunity.

I wish the Minister the best of luck with the new commission for the regulation of aviation. It will be achieved by amalgamating Aer Rianta with the Irish Aviation Authority. The Minister's approach to transport problems in general is forward looking and constructive and I wish her the best of luck in her endeavours.

I thank the Deputy.

I wish the Bill were more comprehensive and covered aviation throughout the country and not just at the three main airports of Dublin, Cork and Shannon. I wish it were all embracing. We need a national aviation policy and it is about time we had co-ordination. We do not have it at present.

I find Dublin Airport disorganised and somewhat itsy bitsy. If one is leaving the country for one or two weeks, one is obliged to leave one's car in the long-term car park. If one is unlucky, it can take a long time to get back to the main terminal. That is not a satisfactory arrangement. People have talked about running the Luas to Dublin Airport. That is an excellent idea and the sooner it is done, the better. However, there should also be an internal railway system within the airport, as is the case in London, Paris and other continental airports. That would be useful for bringing people from the car parking areas to the various terminals which have now spread out in all directions. There is a necessity for a grandiose plan but I see none at present.

The Minister said that £350 million will have been spent by the end of 2000 but we need to think bigger and in a more organised way. The present system of slapping on a wing here and there and putting a car park further out on the M50 is not the way to do it. I would like to see a plan which would lead to something co-ordinated, organised and workable and get rid of the massive queues at the various departure points in Dublin Airport.

It is wonderful that liberalisation, to use the Minister's term, was introduced in the aviation industry about ten years ago. It led to a growth of air traffic which resulted in the tourism boom this country is enjoying. It was an important element in the development of the Celtic tiger. That is not recognised and the people who were responsible for it were never given proper credit. Long may it continue. There has been a huge annual growth rate since 1994 at the rate of 12.5%. The fact that people have cheap access in and out of the country is worth billions of pounds to the economy each year. I do not know if this has been quantified but the monopolistic situation of Aer Lingus up to that period was a positive drawback to the tourism industry and I am pleased this has been recognised by all sectors.

I recall when Opposition spokesman on transport in 1980 having several meetings with the chief executive of Aer Lingus. He was adamant that the lowest possible return fare between London and Dublin and vice versa was £208. Now such a return fare is only £60 or £70. In real terms, £208 in 1980 would now convert to closer to £1,000 if Aer Lingus still had a monopoly. The advent of liberalisation or deregulation has worked wonders for this country. I would like the Minister to extend this further and let the privatisation of Aer Lingus go ahead.

Fair dues to the Deputy.

The Minister should not let those who are screaming about recent difficulties shout her down. The same applies to Aer Rianta. I do not understand why this should not be privatised. I am aware the Minister is setting up a new body but she should privatise the company and give people value for money. That is what politicians are elected to do. By introducing regulations to govern these bodies if privatised the Minister is doing her job properly. She is doing a fine job as things stand.

We should not be hamstrung by procedures introduced in the 1920s and 1930s when these services were needed, whether in CIE, the ESB, Aer Lingus or whatever. That day has passed and we are now in a period of open competition and giving people value for money. The stark statistic I cited about Aer Lingus in 1980 proves how the Irish public were ripped off for years because of incompetence and empire-builders within the public service. These people should not have been allowed to get away with it. I was reprimanded within my party and criticised by the other parties in the Dáil for saying so at the time. I am pleased this idea has come to pass and I would like to see it extended.

I would like an end to the cosy cartels which operate within monopoly companies such as Aer Rianta and Aer Lingus because these companies should be made to compete. The Aer Lingus pilots who are currently threatening industrial action would be much better off if they were working in a private capacity because they would probably earn twice as much. However, while they are employed by a straitjacket monopoly they will never attain that level of pay.

I will now move to the south side of the city and a point I have raised repeatedly on Question Time. Why have positive measures not been taken to open up Baldonnel as a civil airport? This has been spoken about for years and I have been raising the question for at least ten years. It is a very logical measure to take because the infrastructure is in place and the land is available if needed for longer runways. This would be ideal and help to eliminate much of the traffic chaos in the greater Dublin area. All the traffic heading for Dublin Airport on the Naas dual carriageway could go to Baldonnel. People living in the general area of west Dublin could use Baldonnel. All major cities in the western world have at least two commercial airports. Dublin, with its traffic chaos, needs two airports more than any other city.

Will the Minister indicate in her reply if she has any positive proposals to open up Baldonnel as a commercial airport? I am aware she must consult the Ministers for Finance and Defence and the Cabinet. Why is something not being done to alleviate the chronic traffic problems in Dublin which could be solved to some degree by providing a second airport on the western side of the city? This would facilitate people living in the south of the country and in the west of Dublin and would alleviate much of the traffic chaos on the M50 and on the roads in that general area. Why can this decision not be made? I presume it is because the Air Corps and the Department of Defence are objecting, that the mandarins in these areas wish to hold on to what they have. That is the usual occurrence within the Civil Service. However, this problem should be overcome and I ask the Minister to make a decision on the issue.

As I said at the outset, the Minister should have a national plan not just for the three major airports referred to in the Bill but incorporating the regional airports. This is an island nation and we need easy access. We need to be able to get in and out of the island easily. Some fine airports have been built throughout the country but they are not being properly supported. We have gone so far but we have not gone the full way.

A terrible tragedy occurred last year in Tramore, County Waterford. If Waterford Airport had had the type of equipment which any airport should have, that tragedy would not have occurred. That is pinpointed in the report of the inquiry into the tragedy. If the navigational aids had been in place and qualified air traffic controllers had been on duty 24 hours a day, there would not have been a tragedy.

All these airports, Waterford, Farranfore, Galway, Knock, Sligo and Castlefin, need to be upgraded. Given that the market exists, we are three quarters of the way towards doing the job properly. Why not provide the money for longer runways and better navigational aids to allow these airports to cater for regular passenger planes which could carry 200 to 300 people? Will the Minister not go the extra few miles in relation to airport runways in these regional airports? This needs to be done. Aer Lingus has pulled out of most of these airports because it cannot land planes which are big enough. The flying public exists and Aer Lingus would use these airports if they had sufficient capacity. Ryanair would use the airports if the equipment was in place and the runways were sufficiently long for planes to land. The charter business is becoming huge, not to mention the executive jets. All of them need a proper infrastructure but it is not being provided. I plead with the Minister to finance regional airports and to introduce a Bill which incorporates not just three airports but also the other five or six airports which I have mentioned to make them viable entities. Management at regional airports scrimp and scrape and send delegations to the Minister begging for a few hundred thousand or a few million pounds more. Let us have a comprehensive aviation policy.

The abolition of the compulsory stopover at Shannon has done wonders for the tourism industry. Some colleagues from Limerick and Clare may not agree but it has worked a treat. I meet Americans today who visited Ireland years ago and they are delighted they can fly in and out of Dublin. They did not visit Ireland half as much previously.

One would have met them in Killarney ten years ago but the town is missing them now.

Tourist traffic has increased enormously as a result of direct flights in and out of Dublin. It was a progressive move and the Minister should not allow vested interests and lobby groups to dictate to her and prevent her from doing what she knows is correct.

I get very annoyed when I read vitriolic comments about Ryanair. The company has done more than any other group to boost the tourism industry through its competitive price structure and the manner in which it brings people in and out of Ireland. It is vilified almost daily instead of being given the praise and credit it is due. If Ryanair has a technical difficulty with an aircraft or a difficulty with staff it becomes an issue on national radio and television. It is as if the pro-monopoly lobby would like to see Ryanair destroyed or ruined or at least bad-mouthed. Ryanair has done wonders for the tourism industry and long may it continue. I wish we went the whole hog and privatised Aer Lingus as well as Aer Rianta.

Ryanair has a difficulty with Aer Rianta's airport charges and is constantly complaining. The company feels it is being victimised and it has threatened on occasion to stop using Ireland as its base. Those who watch Sky News will know that Ryanair sponsors the weather forecast. Its network is spread throughout Europe and it probably could do without Ireland. The Minister should bear in mind that it would not be the first time a great industry or operation was moved out of Ireland because of petty jealousy, red tape or bad people in State bodies squeezing them out and she should not allow that to happen. The Minister is doing a fine job. She should stand up to the begrudgers and assist the people who are helping this country.

I welcome the Bill and wish to refer to the issue of regional airports. I regret that the regional airports with the most potential could not have been accommodated within this legislation, which deals with airports with a throughput of more than one million passengers annually. Nevertheless, regional airports such as Kerry and Galway Airports have a great deal of untapped potential. The Minister referred to her policy on such airports. The appointment of a regulator and a commission is welcome.

I travel frequently and when one examines the standards of airports in Europe and America in comparison to Ireland, one sees a difference. Heathrow and Charles De Gaulle Airports have been improved considerably over the past ten years and the number of American airports which have been improved to a high standard brings home how far Irish airports must go despite recent improvements.

Dublin Airport has experienced considerable growth in the past five years and it is a profitable enterprise. Restaurant and catering facilities were needed there but those which were provided recently leave a great deal to be desired. They remind me more of what one would find in eastern Europe rather than in America or western Europe. The new restaurants are badly designed and do nothing for a modern airport. I passed through the airport recently and made that comment to a number of people. A great deal of space was used but it was not used positively or to its maximum potential. Internal and external space is as important at airports as it is anywhere else.

The transfer of baggage is critical with people flying into Dublin Airport from many other airports. They have deadlines to meet or appointments to make and I have seen many people in a frenzy because their baggage has not arrived. This could even happen in the case of a flight from a regional airport such as Kerry Airport. I have witnessed many international commuters in a frenzy because they have missed appointments, their schedule has been affected or their return trips have been delayed. Improvements have been made but the importance of the transfer of baggage cannot be emphasised enough.

I agree with Deputy Deasy in regard to the increase in tourist numbers. The advent of the new philosophy of deregulation and liberalisation has made Ireland more competitive in terms of attracting other airlines. However, I disagree with the Deputy in regard to Shannon Airport. I could be accused of being parochial but the tourism industry has been affected in Kerry and the west. Tourist numbers may have increased, which is good for the economy, but Clare and Kerry's market share has been affected.

It did not affect the performance of the Minister's party at the last election in Clare, where it won three seats, despite two Members resigning during the Shannon stopover dispute.The Minister's party played it very well in Clare but when the compulsory Shannon stop-over was abandoned it must have affected the economy of the area, including tourism in the mid-west and to some extent the location of industry there. The end of the stop-over is a reality now and will not be reversed but it should be taken into consideration when we are developing regional policy. Perhaps we can compensate that region for the loss of market share in tourist numbers.

If we are to have a credible regional policy we must strengthen our regional airports. I wish to refer to Kerry Airport in particular. Yesterday I tabled a question on the Adjournment about the concern in Kerry because of rumours and statements emanating from Aer Lingus during the summer period that the company may not tender for the PSO to operate the Dublin-Kerry route after next January. The Minister graciously received a deputation from Kerry led by the chairman of Kerry County Council and the members of the deputation were impressed by her honesty on that occasion. Because of that deputation more pressure was put on Aer Lingus by the people in charge of Kerry Airport. I was delighted that yesterday, at noon, the Minister for Justice, Equality and Law Reform, who was probably under some pressure, announced that Aer Lingus was going to tender for the route.

But a tender is only one part of it. It is an open competitive process.

I know that but the first thing was to get Aer Lingus to tender. That was the important thing we were concerned about. After that, of course, it is an open process. We believe that, according to the specification on the European Commission's statement, Aer Lingus would be the only operator that will meet that require ment. As far as I can see, it will be difficult for our other indigenous operators to reach the standards set out in the specification. For that reason I am hopeful that Aer Lingus will continue to operate that route. Aer Lingus has a high standard. Whenever one travels abroad one can feel that standard and experience it. When one compares Aer Lingus to other carriers it certainly has very high standards of comfort and passenger care that other airlines just do not have. That must be recognised.

It would affect the schedule of services on the Kerry-Dublin route if Aer Lingus was not operating it and that feeling is shared by the general population in Kerry. When rumours and statements were emanating from Aer Lingus that the company was reviewing its entire internal operation, there was a major campaign within the county. It was one of the most unified campaigns I have ever seen within Kerry. Unfortunately, if we had led a similar campaign when we were seeking Objective One designation it might have been more effective.

(Mayo): And the All-Ireland final.

That is the only other time Kerry people come together – behind the team for an All Ireland final. Otherwise we are a fairly divided county.

Is Kerry going to win on Saturday?

We have a very good chance.

I would say so.

It is a pity we have not got a service from Kerry Airport at Farranfore because we could get more supporters up.

There were plenty the last day.

That will come in the future, no doubt. Tralee, Killarney and Listowel Urban District Councils, Kerry County Council, the chambers of commerce in Tralee and Killarney and the Kerry branch of the hotels federation all came together with a concerted campaign. We have certainly convinced the Minister, not that she needed to be convinced. Now that we have gone some of the way towards that objective, Aer Lingus will also fully appreciate the importance of its service to Kerry and how much we appreciate it.

Over the summer Aer Lingus carried out a review of its internal operations. As a result of that review the Kerry-Dublin route has been identified as one with a commercial basis – in other words, it can be profitable. I understand that last year Aer Lingus lost money on that particular service. If one looks at the company's overheads, however, that is understandable given that its overnight accommodation costs are in excess of £250,000. The crews remain in Kerry for such a short time overnight that I am sure the accommodation bill could be substantially reduced. If that matter and the other overheads were examined I think the company could make the route profitable.

The Minister has specified that standards must be improved and she has obtained approval from the European Commission. At times people do not understand how these things are done.

I thank the Deputy for saying so. It is 50% extra.

The Minister is now specifying that there will be three daily flights, seven days a week. The minimum seating capacity is being increased by 50% to 300 seats. Those are major improvements. As a result of this, Aer Lingus can use its initiative and connections to ensure that the service will be successful. The company will market the route and use its connections abroad to market Kerry Airport internationally. The business must be there. This year some two million tourists visited Kerry. Approximately 78,000 came via Aer Lingus flights and many of those are local commuters. There must be major potential for the Kerry-Dublin route if it was properly marketed. I am sure Aer Lingus will take the route seriously and will be able to make it profitable.

Kerry is representative of all the counties along the western seaboard and it suffers from peripherality. In general, the county's access roads are very poor and we have no port facilities. In addition, our train facilities leave much to be desired because the Mallow-Tralee line is inferior. There has been some investment in it recently but, generally, time is lost on that stretch of track. It takes five hours to get from Kerry to Dublin by car.

If one is lucky.

It is a similar journey by train, but it is a long drive. We are suffering because of our peripherality in terms of attracting foreign industrialists and a bigger share of the tourism market. We want to push the county from an industrial viewpoint. People are very mobile now and they do not want to waste time on roads here or elsewhere. Their time is short and they require good travel facilities. Unless regional airports, such as the one in Kerry, have that type of daily access we will have more disparity concerning mobile investment. I know from my efforts in America that it is difficult to get industrialists into Tralee, Listowel or Killarney. While industrialists may not be that concerned about cargo movements, travel times for personnel are critical factors. Such people will not waste valuable time travelling by road or on a very uncertain rail service; therefore, one must have air access.

Aer Rianta owns the main airports and thus has a major advantage. Farranfore in Kerry finds it hard to compete with Cork and Limerick because they are better financed by Aer Rianta and can provide better facilities. The only way that can be compensated is through Government investment in regional airports given the regional disparity that exists. This is why regional airports must become an instrument of regional policy. The only way they can compete is through investment and there is a commitment in the national plan regarding regional airports. In the case of Kerry Airport, the Minister has started positively, given her recent announcement, and the facilities there must be improved. The airport has one of the finest runways in the country but there is a need for better handling, lounge and reception facilities.

I welcome the debate which gives us an opportunity to discuss air travel in this country. The Bill must be welcomed because it is important to establish a regulator and a commission. It provides an opportunity to address the regional issue and the Minister will hear much more from now on about the importance of regional airports. People have suddenly woken up to the fact that time is important to people who matter, such as investors and managers. They will not spend time travelling on roads, irrespective of the sentiment or cajoling involved in trying to get them to locate in a county. This is why the Minister will hear much more about the importance of regional airports.

Tá áthas orm seans a fháil labhairt ar an mBille. I note from reading the transcript of the Seanad debate and from watching this debate on the monitor earlier that the purpose of the Bill is to establish a commission to deal with aviation regulation. However, it is a useful opportunity to consider wider aspects of aviation policy which are continually changing. It is important to debate these matters. I make this point as a Deputy for Dublin North but they are also important in terms of the country's overall welfare. These issues need to be constantly debated.

The commission will regulate charges for Aer Rianta and the Irish Aviation Authority. Over the years, these bodies have managed to keep themselves separate. They have developed very well, but they created a considerable amount of frustration for me and others when we tried to clarify areas of responsibility in relation to ground handling. The unions and workers are concerned about reduced levels of safety in this area. This is a serious matter which needs to be clarified in terms of ensuring the highest safety standards are maintained in the context of deregulation and all the other pressures that will arise from our membership of the European Union and general free trade conditions.

Another point which needs to be clarified is what is the best body to monitor noise. The greatest awareness of many of my constituents of Dublin Airport, including those who work there, is the constant issue of noise. When they ask who monitors the noise from Dublin Airport – I am sure this also relates to other airports – they are told that Aer Rianta generally monitors it on the ground and the Irish Aviation Authority monitors it in the air. This creates a huge amount of doubt about whether the job is being done properly because one body tends to pass the buck to the other.

These matters need to be clarified before any other changes are introduced. Competition is fine and consumers and the Minister will be aware of its effects in all areas. However, we must take a step back in terms of corners that are being cut with regard to safety. We must consider whether the bottom line is cost or if safety should be factored in to compensate in areas where competition will not address safety issues.

I hope the debate will give rise to a wider discussion on the Government's spatial planning policy and aviation policy. At present, there is the prospect of huge decentralisation to areas around Dublin, despite all the policy documents. There is congestion on land and also in the air. There is the strange situation that noise pollution is not even monitored by the Environmental Protection Agency. Aircraft noise is excluded from its remit. This is bizarre and we tried to change it when the Environmental Protection Agency Bill was going through the House. However, for some reason, the move was resisted.

The local council carries out some monitoring but it is an ad hoc arrangement and it has no legal obligation to do so. The knock-on effect of growth in air traffic must be taken into account. In my area of Dublin North, the demand for runways is the major issue and it will cause a headache for the Minister in the future. Many people who live in St. Margaret's community and Portmarnock work in Dublin Airport but they say there must come a time when the growth in airport traffic is capped in a region of a certain size. A policy of continued increase in traffic is not sustainable.

Dublin Airport has earned an excellent reputation over many years, but I detect a change. Deputy Higgins spoke about the difficulties of overcrowding and the pressure on the infrastructure there. The Government may say this problem has been caused by success – the Taoiseach is wont to say that whenever these problems are mentioned. However, end of year profits are not the only measure of success. In some ways they can cloud the bigger picture.

Deputy Yates earlier made alarming comments about the possible effects of smoking on aeroplanes and the need for more regulation in that area. These issues must be taken on board in addition to the end of year balance sheets. Representatives of all parties at a recent meeting in Portmarnock said that Baldonnel should be developed. This is a change, it used to be a case of no place other than Dublin Airport.

It has changed. I am waiting for the outcry from people in Tallaght when the message gets home that—

The Deputy should open my post any day.

—the problem has been shifted a couple of miles south. The lack of adequate rapid transit has been repeatedly mentioned to the Minister. The results of that are to be seen around Dublin Airport. There is now a semi-permanent traffic jam. I travel via the airport regularly and, as the Minister knows, I cycle as often as possible. However, the road surface around there is so bad that I had to buy a mountain bike to enable me withstand the difficulties it presents. The infrastructure around the airport is crumbling. When I try to avoid causing a traffic jam by cycling, I am penalised by the bad road conditions.

Passenger numbers point towards the need for some type of radical aviation policy which foresees a cap in the future. At present we are talking about 14 million passenger movements at Dublin Airport. The recent aeronautic convention in Enterprise Ireland in Glasnevin projected that there would be 40 million passenger movements in 2020. I do not know how the current infrastructure will deal with that. We need 20:20 vision. Rising fuel costs will also have an effect. We need realistic planning to avoid a boom and bust scenario where business goes on as usual until something interrupts it.

It is frighteningly irresponsible to expect never-ending and accelerating passenger levels when many factors will impinge on that projection, such as space around the airport, fuel availability and cost, air traffic safety, the effects on residents in the area of expansion, for instance in Portmarnock which is within the 35 noise nuisance index zone and is looking at another runway proposal near the town, and environmental stress, which is an international issue and must be taken into account. Unless the Government takes responsibility for this issue we will be on a collision course – I hope it will not be the same type of collision course as the St. Phelim– in terms of the economic problems which will arise if we do not plan for the future.

Dublin Airport currently has three operating runways. Some 78% of the traffic uses runway 1028, which runs from St. Margaret's to south Portmarnock. That is the main cause of noise for people living in that area. Runway 1129 is smaller and it runs parallel to runway 1028, while runway 1634, which is also small and runs towards Santry, has been closed down. I understand Gatwick Airport operates on one runway for 20 million passengers. There are five airports in London and only one in Dublin, yet that is the busiest route. The five airports from London are feeding into one little funnel. Aviation policy must take that into account.

The plans for a new runway over central Portmarnock give considerable cause for concern not just about noise but about safety, separation zones, the possible doubling of the noise nuisance index and the added problems of aeroplanes circulating in the area and burning off fuel or, in the case of airbuses, jettisoning fuel over the Irish Sea. We must look beyond the end of year returns which look rosy, airport curtilage and the welfare of the current population to see what will be left for future generations. It is time to factor in the costs as well as the benefits in terms of health, ozone depletion, greenhouse gases and noise.

We must try to strike a balance in this debate. Notwithstanding what Deputy Deenihan said about the need to get football fans to Dublin in double quick time, there is a big question mark over when it is as competitive to fly as it is to take a train. Fuel consumption for rail travel is less than that for air travel, yet people weigh up which they will choose. There is something wrong economically when people do that. We must look beyond the scenario of business as usual, whether it is private or public. I suggest that if it is public and it is not broken, there is no need to fix it. We must bring the wider issues into this debate. The development of lighter air travel in the 1930s, such as the airship, was abandoned because of the Hindenburg fire. However, developments in technology and in airship travel means that if this country is serious about its future and factors over which it has no control, whether it is the Gulf War or matters relating to OPEC countries, it needs to have contingency plans for air travel and to work at making them a reality. It must be our priority to make those plans into the future. If we spearhead developments in airship travel in the same way as the Danes have become world leaders in wind energy, a considerable amount of our needs would be met. We, as an island nation, are being handed something on a plate which other countries have abandoned. The time has come to look again at this issue.

The Minister of State at the Department of the Marine and Natural Resources, Deputy Byrne, mentioned an issue in which the Minister knows I am interested, namely, the crash of the St. Phelim in 1968. We should look more closely at this issue, particularly if we are talking about regulation and safety. I know an investigation was carried out and I thank the Minister for instigating that. However, the more I hear about dives and exploration of the Titanic at many thousand feet, the more I realise we should not have a problem exploring the remains of that aeroplane to see if conclusions can be reached so that such a tragedy is not repeated. History tends to repeat itself if the causes are not closely examined. I hope we will take the initiative and look more closely at the St. Phelim because that type of disaster hangs like a cloud over everyone involved in the aviation business, particularly the pilots, many of whom I know. I hope the Minister responds to the Minister of State, Deputy Byrne, and looks more closely at this issue.

There is an ongoing investigation.

I know that but we must determine conclusively the cause of the crash by looking at the body of the aeroplane which is in reasonably shallow water compared to the type of depths people now explore.

That may not happen.

This Bill is important as it will control five important areas of airport business. It will control air traffic and traffic control charges and the ground handling service providers. It will also deal with the granting of operating licences to air carriers, the allocation of take-off and landing slots at airports and the licensing and bonding of travel agents and tour operators. I understand the Bill will affect airports with more than one million passengers. Dublin, Shannon and Cork airports will fall into that category. Perhaps the Minister will clarify if it will also apply to regional airports.

It will not.

Deputy Jim Higgins, who is spokesperson on public enterprise and tourism, set out graphically the major problems in Dublin Airport. I agree with what he said because I have received many complaints from the users of the airport about its inefficiency and how they have faced chaos on a regular basis. I cannot understand how check-in desks can be left unused at peak times while passengers have to queue almost outside the doors of the airport. I know that may be a matter for the airlines but it adds to the airport's inefficiency. That type of attitude shows contempt for the public and a high level of complacency among the people operating the airport.

There has been an ongoing public debate about whether our main airport should be sold off to private enterprise. Although Dublin Airport enjoys a monopoly, it is still a vital national asset. It would be unacceptable to sell it off to a private company. Cork and Shannon airports are also vital national assets and must be retained in public ownership. It would be unthinkable for anybody to suggest that we sell off our ports and harbours and it would be equally unthinkable to sell off our main airports.

Debate adjourned.

Carlow-Kilkenny): I wish to inform the House that the bells reconvening the House for Question Time at 2.30 p.m. will be rung longer than usual, that is, for seven to eight minutes to allow for testing to ensure that the bells can be heard in all areas of the Leinster House precinct.

Question Time still starts at 2.30 p.m.

Quasimodo would be proud of us.

Sitting suspended at 1.30 p.m. and resumed at 2.30 p.m.
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