Dáil Éireann díospóireacht -
Tuesday, 28 Nov 2000

Vol. 526 No. 6

Written Answers. - Catering Franchise.

Noel O'Flynn

Ceist:

176 Mr. O'Flynn asked the Minister for Public Enterprise if her attention has been drawn to the fact that a seven year contract has recently been signed for the catering franchise at an Aer Rianta operated airport; if her attention has further been drawn to the fact that EU competition law forbids exclusive licensing for more than a five year period in certain cases; if her attention has further been drawn to public concern with regard to private franchise service standards at airports; if she has satisfied herself with the degree of day to day public control of private franchise services at public facilities; and her views with regard to the introduction of a genuine competition by means of competing outlets at our major airports. [27250/00]

Minister for Public Enterprise (Mrs. O'Rourke)

The provision of catering facilities at Dublin, Cork and Shannon airports is a matter for day to day administration by Aer Rianta subject, of course, to compliance with all relevant legislation.

Aer Rianta has confirmed to me that, following a public tender process, seven year contracts were awarded for the catering and bar services at Dub lin Airport. The contracts were not granted on an exclusive basis as there are now a total of three competing outlets providing catering facilities at that airport.

I understand that the EU competition law the Deputy has referred to applies to exclusive procurement contracts only. That law does not apply in this case as a catering franchise in Dublin Airport is not a procurement contract, nor is it exclusive. However, such contracts are subject to Irish competition law, and in a previous notification to the Competition Authority concerning a franchise agreement at Dublin Airport, the authority certified that a ten year agreement did not contravene section 4(1) of the Competition Act, 1991, which sets out the basic rules of competition.

It is open to the parties to any agreement to notify same to the Competition Authority in order to determine whether the agreement accords with the rules of competition.