David Stanton
Ceist:34 Mr. Stanton asked the Minister for Public Enterprise her plans for the future of Aer Rianta and the development of the airports under the control of Aer Rianta; and if she will make a statement on the matter. [30006/01]
Priority Questions. - Aer Rianta.
I outlined my views on the future of Aer Rianta in my reply to Question No. 34 of 17 October 2001, tabled by Deputy Stagg. I repeated that my main concern in relation to the corporate strategy to be decided upon for Aer Rianta is that it must be the correct strategy not just for the company itself and its employees but also for the users of the State airports.
The sad events of 11 September have had a dramatic impact, as we know, on the global aviation industry and particularly on air travel to and from the USA. There is now a range of difficulties facing the aviation sector which are being urgently addressed by the Government and by Governments throughout the world. As the Deputy will appreciate, I am at present obliged to focus on these priorities, which include the critical issue of the survival of Aer Lingus, the levels of security at our airports and Exchequer support for Irish aviation companies in the field of war risk insurance. I will return at the appropriate time to considering, in consultation with my Government colleagues, the strategic options for the future of Aer Rianta in the long term.
The three State airports at Dublin, Shannon and Cork are a vital part of the national transportation infrastructure and perform a vital function as major access points for business and tourism. They have seen a dramatic growth in passenger traffic in recent years, but that will not be the outcome of the last three months. Dublin Airport accounts for the bulk of traffic through State airports. The major extension of the terminal building at the airport is now in place and the integration of this with the older part is scheduled for completion in February, allowing for up to 20 million passengers annually as against the 14 million passengers using the facility last year. Shannon Airport has a new terminal building which was completed last year with the aim of doubling the annual capacity of the airport to 4.5 million passengers.
Aer Rianta has recently announced plans for an extensive capital investment programme at Cork Airport at a cost of £86 million, or 109 million, to provide major new infrastructure and facilities. I understand that the county council has now approved that proposal. I do not know if the appeal month has passed – I thought not – but providing there is no appeal to An Bord Pleanála, work will commence in early spring.
Additional informationAer Rianta continues to plan for the ongoing provision of adequate infrastructure at our air ports to cater for traffic, particularly in the second half of the decade. This type of advance planning and preparatory work is vital because of the long lead times involved with major projects and the need to plan sufficiently well in advance to have additional infrastructure available when required. Work will commence on that in early spring.
I thank the Minister for her reply. Does she agree that low cost access to the country is very important for the future of the tourism industry? Has she been approached by agencies, companies or others seeking the development of low cost terminals in airports, and what are her views on such approaches and ideas?
Yes, there is interest in a low cost terminal and the 11 September committee set up by the Government looked at that and other matters. I agree that low cost air access would have an effect on the number of tourists coming here. However, in tandem with that Aer Rianta has a commercial mandate which must be fulfilled. This relates to the 1998 Act which empowered Aer Rianta to operate within commercial parameters and clearly it must fulfil that mandate. My position remains the same. Whatever inducements can be provided by Aer Rianta for air passengers would be for all passengers and not for some. The same principle would apply to a low cost terminal. However, in the case of an airport with a capacity for 20 million people which is being used by 14 million, Aer Rianta would look twice at such a provision. Be that as it may, whatever is provided would have to be provided by law for all the airlines using the airport. One cannot differentiate. I would not allow a situation where State-provided land or buildings would be given to one airline. That would be the subject of a tribunal at some further date.
The Minister mentioned Cork. Is the £86 million in place? Is it coming from Aer Rianta's resources or does the State have an input into it?
No, because Aer Rianta must be commercially viable. I drew down a eurobond at very favourable rates and there was a parliamentary question on it last year. The Deputy can get the details or I can get them for him. I understand that eurobond borrowing is what will enable the infrastructural work to take place in Cork. Dublin and Shannon have thankfully had their major capital infrastructure provided while Cork has not. I hope the planning process proceeds and if there is no hindrance to that it should commence in the spring. I asked my office to telephone the chairman about this and he said the £86 million infrastructure work in Cork will go ahead.