Thomas P. Broughan
Ceist:439 Mr. Broughan asked the Minister for Transport the stage of his plans for Aer Rianta and on discussions with the SIPTU trade union regarding the future of the company. [21880/03]
Written Answers. - Future of Aer Rianta.
Richard Bruton
Ceist:454 Mr. R. Bruton asked the Minister for Transport the basis on which he proposes to transfer debt from Cork and Shannon to the new company which he proposes will operate Dublin Airport; his estimate on the scale of debt that will be transferred in this way; and the basis on which he has decided the capacity of each operating airport to carry debt. [22302/03]
Seán Haughey
Ceist:456 Mr. Haughey asked the Minister for Transport the reason he is proposing to break up Aer Rianta; the reason the burden of debt is being given to the new Dublin board; and if he will make a statement on the matter. [22352/03]
I wish to answer Question Nos. 439, 454, and 456 together.
An Agreed Programme for Government included a commitment to continue to transform Aer Rianta and, as part of that process, to ensure that Shannon and Cork airports have greater autonomy and independence.
In July last, the Government decided to establish the three State airports at Dublin, Shannon and Cork as fully independent and autonomous authorities under State ownership.
Work in relation to the implementation of this decision is proceeding apace in my Department. I will shortly be seeking Government approval for the drafting of the necessary amending legislation to give effect to the decision and I would hope that this legislation could be enacted by the end of the year. I have appointed the chairmen of the new boards-designate for the three airport companies and I expect to be in a position shortly to announce the other members of these boards.
My Department is also at an advanced stage of a public procurement process to engage expert advisers to assist with the implementation of the Government decision. It would be my hope that the three new State airport companies could be up and running on a statutory basis in the first half of next year.
It is envisaged that the two new independent airport authorities for Shannon and Cork will both commence business free of debt and that the debts associated with these airports, including the debt associated with the major new investment programme at Cork Airport, will remain with Dublin Airport. The desirability of these arrangements emerged from the analysis of the financial position of the three State airports within the current Aer Rianta structure which was conducted for my Department by Aer Rianta. These arrangements will ensure that both Shannon and Cork airports will have sound balance sheets, giving both a fresh start to develop and grow their business at a pace which I believe can be even greater than in the past.
While the precise levels of debt involved in each case have yet to be determined, Shannon and Cork had estimated net debts at the end of 2002 of approximately €70 million and €40 million respectively. When these are added to the estimated net debt of €120 million associated with the new development programme at Cork Airport, the total debt of those two airports which will remain with Dublin is €230 million.
Dublin Airport accounts for almost 80% of the total annual passenger throughput at the three State airports and, in effect, Dublin has been carrying the bulk of the debt associated with all three airports. Under the new arrangements, therefore, a burden which already exists on Dublin Airport will, as currently envisaged, be crystallised through a once-off transfer of the debts associated with Shannon and Cork on a more transparent basis.
As the implementation process in relation to the restructuring continues over the coming months, I will give detailed consideration to the implications for Dublin Airport of absorbing the debts of Shannon and Cork in the context of other significant assets of the Aer Rianta Group, such as the Great Southern Hotels and Aer Rianta International.
Both I and senior officials of my Department have had a number of meetings with ICTU and the group of unions in Aer Rianta, including SIPTU, with the aim of addressing any concerns on their part arising from the Government decision. I wrote to David Begg, general secretary, ICTU, following these meetings outlining my position on a number of points which had been raised by the unions in Aer Rianta. I also pointed out that I regard the unions as key stakeholders in the context of the various consultations already under way in my Department with other relevant parties on the implementation of the Government decision.
I have indicated to the unions that I remain available to meet them again as required.