Vol. 751 No. 2
6Deputy Barry Cowen asked the Minister for Transport; Tourism and Sport the progress made to date in finding a replacement for a person (details supplied) as chief executive of the Dublin Airport Authority; and if he will make a statement on the matter. [1556/12]
Under Article 29 of the Air Navigation and Transport (Amendment) Act 1998, the recruitment of a CEO is a matter for the board of the Dublin Airport Authority and not one in which I have a legal function. I understand, however, that the authority has advertised the post in the national press. The contract of the current CEO runs until next April. The terms and conditions under which appointments such as that in question are made are subject to my approval and that of the Minister for Public Expenditure and Reform. I am expecting a formal request in due course when the board has selected a candidate.
The Minister will be aware that the outgoing CEO, Mr. Collier, announced on 15 November, almost two months ago, his retention to resign. I am concerned about the length of time it has taken to begin the process of recruiting a new CEO. The Minister is correct to state advertisements have been prepared. However, I am not sure whether these have yet appeared. If they have done so, it was only in recent days. While the Minister does not have a function in the appointment of the chief executive officer, he does have a function in the appointment of the chairman. Has a tardy approach been taken to appointing a new CEO because there has not been a chairman in place since last May? The previous chairman, Mr. Dilger, resigned in April. I understand his contract ended or that he terminated his employment on or about 31 May last. It took until November for the Minister to approach the chairman designate who came before the Joint Committee on the Environment, Transport, Culture and the Gaeltacht this week. While the individual in question is an excellent candidate and would be very good for Dublin Airport, he has limited, if any, experience in the airline sector. That creates a problem for the DAA because in the coming months, following the departure of Mr. Collier, there will be a period during which a CEO will not be in place. The chairman designate has indicated that it will take approximately nine months to appoint a new CEO. During that period the authority will be run by a chairman who has little or no experience in the day-to-day running of an airport. The chairman designate is being placed in a difficult position and our airport infrastructure is being put in a perilous position. Why did it take so long to appoint a new chairman?
To clarify, the position of CEO was advertised in the press in recent weeks. In general, the search for a CEO to head up a company of this size and nature can take up to nine months. The chairman designate who was approached in November is soon to be appointed. As the Deputy stated, he appeared before the joint committee earlier in the week. I understand he gave an extremely good account of himself during the hearing. I am sure his appointment will be confirmed by the Government shortly. In addition, I will be appointing a new board for the DAA in the next fortnight.
It has taken time to put matters in order, as it is not easy to find very good people to chair State companies. It is easy enough to get someone to sit on a board, but it is quite difficult to encourage a person to take on the chairmanship of the board of a State company. This is owing to the demands involved, the thankless nature of the job and the very poor remuneration for those who chair such boards. After tax, those who chair State boards are paid €7,000 or €8,000 per year for work which could take between ten and 20 hours work a week to complete. It is difficult, therefore, to find people to serve. However, I must state those I have found to chair these boards to date are excellent individuals. Before anyone asks, none of them has Fine Gael connections. It takes time to find the right person. However, it is worth taking that time.
I have no issue with the calibre of the individual whom the Minister has appointed to the chair. He is a candidate of exceptional quality and skill but he does not have the experience he will need in the absence of a chief executive and for this I am disappointed it has taken the Minister so long. Six months is an undue period. The Minister should have been able to find a chairman more quickly.
During the course of the committee discussions, the chairman-designate made clear that he believes the fact that the new pay cap will be in place will be an inhibiting factor in respect of the appointment of a new chief executive. Has the Minister given any consideration to lifting the cap for the appointment of a chief executive for the Dublin Airport Authority, taking into account that no taxpayer's money is involved and the DAA is self-sufficient, especially in light of the points made by the chairman-designate? Does the Minister wish to be in a position whereby he will be obliged to take a second, third or fourth-rate candidate when he could enter negotiations with the chairman and find the best person to lead the airports of the country in future?
I met the chairman and we had a long discussion at the committee meeting. There was a concern in terms of the issue of the pay cap of €250,000 set by the Minister. It is too much one way or the other but in this time of austerity and given all that is happening in the economy, I have no wish to see us going beyond that amount. The chairman indicated he had no problem with this in general. I have no arguments with his credentials. He seems to be good as far as I am concerned. However, it is an immense job. There is a €500 million pension fund which has many problems. It is a profitable company and I do not believe the taxpayer should have to put much to it. It is an urgent matter.
I reassure Deputy Dooley that there will be an acting chief executive in place during the interregnum and the acting chief executive will have a great deal of experience of running airports. The chairman-designate stated that he believed the salary cap would inhibit the DAA in its search for a new chief executive but he made his position clear. He stated that the board and the chairman of the DAA would comply with Government policy, whatever the pay cap.
The Government has no plans to reconsider the pay cap although the point Deputy Dooley makes is valid. The chief executive is not paid by the Exchequer but by the DAA. The higher the salary, the higher the tax returned to the taxpayer, a point many people do not fathom.
The current chief executive is leaving. I am disappointed he is going because he has done a good job. He is leaving to run London City Airport, an airport with one ninth the number of passengers of the three State airports combined. He is leaving for a salary of £410,000 plus a bonus of between 55% and 95%. The chief executive of Manchester Airport, a similar sized airport to Dublin, receives a salary of £515,000 before a bonus. This is something we should bear in mind in this State. While many people in the State are paid more than their equivalents in other countries, this is not the case when it comes to the chief executive of the DAA.
7Deputy Marcella Corcoran Kennedy asked the Minister for Transport; Tourism and Sport his views on the tourism measures contained within the jobs initiative and their impact on helping tourism here regain cost competitiveness and support employment. [1397/12]
11Deputy Joe McHugh asked the Minister for Transport; Tourism and Sport the impact of the jobs initiative on tourism, with particular reference to the reduced lower VAT rate and the British-Irish tourism visa waiver scheme; and if he will make a statement on the matter. [1528/12]
29Deputy Bernard J. Durkan asked the Minister for Transport; Tourism and Sport if he is satisfied that the tourism sector is likely to develop and expand sufficiently in the course of 2012 to maximise its potential contribution to the generation of employment with consequent reduction in the live register and thereby creating a positive economic impact; and if he will make a statement on the matter. [1637/12]
53Deputy Jonathan O’Brien asked the Minister for Transport; Tourism and Sport if he has carried out any studies into the effect of the VAT and PRSI reduction introduced in mid 2011 on tourism numbers; and if he will make a statement on the matter. [1550/12]
259Deputy Bernard J. Durkan asked the Minister for Transport; Tourism and Sport the extent if any to which he has reviewed the employment potential in the tourism sector with a view to maximisation of the creation of increased employment opportunities while retaining existing jobs; the degree to which he has received submissions from the sector in this regard; and if he will make a statement on the matter. [1830/12]
I propose to take Questions Nos. 7, 11, 29, 53 and 259 together.
The jobs initiative introduced a reduced 9% VAT rate from 1 July on a range of services, including hotels and restaurants. The Government also halved employers' PRSI for those on modest wages and introduced a visa waiver scheme that makes Ireland more accessible for tourists from important new and emerging markets. These measures were aimed at supporting the creation and maintenance of employment within the tourism sector as well as helping tourism businesses lower their cost base and allowing them to offer a more competitive product to tourists. The reduced VAT rate for tourism and leisure related products and services was important to correct a perception of Ireland being an expensive place to visit. This latter point is particularly important in terms of the British market, which is our main source of visitors and the market from which we have lost most share in recent years.
At this stage it is too early to assess accurately the impact of these measures on either tourism numbers or on employment in the sector. With regard to tourism numbers, we will need to consider the figures over a longer period to assess properly the impact of the initiative. In respect of the impact of the measures on sustaining employment in the tourism sector, the most recent figures from the CSO only relate to the third quarter of 2011 and do not fully measure the impact of the jobs initiative. Therefore, it will be later this year before we can begin properly to form a view on the effect of these measures on competitiveness and employment.
I am, however, pleased to report that overseas tourism numbers have increased by 6.8% in the year to the end of November, and I am also encouraged that employment in the accommodation and food services sector increased by 6,000 over the six month period between the launch of the jobs initiative and September 2011. I have every confidence the tourism industry will have exceeded the targets set for 2011 when the full year statistics are available approximately one month from now.
Improving the perception among domestic and overseas visitors that holidaying in Ireland offers good value for money was an important part of the jobs initiative measures. In this regard, I draw the attention of Deputies to the most recent consumer price index which shows that in the year to November 2011, the price index for restaurant and hotels is down 0.9% and down 1% for recreation and culture related products and services it is down 1%. However, the overall consumer price index was up 2.9% during the same period. It should be noted that the restaurant and hotels index is at its lowest level since March 2007 in terms of prices while the culture and recreation index is at the lowest level since March 2006.
These price reductions were driven by a wide number of factors, including the VAT reduction, and demonstrate the increased competitiveness of the Irish tourism market. Delivering value for money is crucial to the recovery of the Irish tourism market and this improving cost competitiveness is an important part of that.
I thank the Minister. I realise tourism is a key priority for the Minister, the Minister of State, Deputy Ring, the Minister of State, Deputy Kelly, and the Government. Tourism is a competitive market and our keenest competitors invest heavily in their tourism infrastructure. The information available here so far has shown that tourism is now joining the agrifood industry as a good news story in our economy. I have no doubt that the measures the Government has put in place to date have contributed to this. In particular, the VAT reduction that the naysayers declared would not be passed on is, in fact, being passed on to the consumer. In addition, the visa waiver programme will continue to contribute because it removes the red tape and barriers that would have been in place previously. The benefits from this will be seen during the London Olympic Games with spin-off tourism here.
Interest in Ireland as a tourism destination remains strong and the key to this is our branding as a product. It is difficult for us to think of our country as a product but it is in terms of tourism. We are ranked 10th by the World Economic Forum for marketing and brand effectiveness. This says a good deal about the people who have been in charge of our tourism product. If we get our branding and marketing right then employment will follow. I welcome Tourism Ireland's new advertising campaign, Jump into Ireland. It is a global campaign to promote Ireland overseas in the coming three years. Tourism Ireland intends to have 9 million visitors by 2015, which is significant for a small island such as this one.
I apologise for interrupting but I remind Deputies that there is a limit during ordinary questions of one minute per supplementary question.
I thank Deputy Corcoran Kennedy for her comments and I concur with everything she said. Tourism is a product in terms of marketing Ireland abroad and it is the aim of Tourism Ireland to increase the number of visitors to Ireland back to 9 million by 2016. This would recover the position to where we were some time ago.
I thank the Minister for his answer. There was a modest increase in visitor numbers to the country last year and that should be welcomed. However, with the Olympic Games and the UEFA European Championships this summer, does the Minister believe there is scope to tap into this potential for increased visitor numbers? Will the Minister provide details of plans to bring the Olympic Games torch here? Does he have any detailed plans for a programme of events around the Olympic Games and the UEFA European Championships?
As Deputy McLellan will be aware, the UEFA European Championships will be in Poland, so I do not believe it will bring many tourists to Ireland. With regard to the Olympic Games, the visa waiver was designed to allow people who will visit the United Kingdom to come to Ireland afterwards. I hope that will work. Quite a large number of people will avoid the south east of England and London during the Olympic Games and some of them will hopefully come to Ireland instead.
The Minister of State, Deputy Ring has chaired the committee in charge of the Olympic torch in preparation for the games. I am not sure if it is permitted to give way to him on this point, but-----
I am sure he can pass on the information.
The committee is working very hard and we have a number of cultural events, both in Ireland and Britain. Naturally enough, Londoners will be fed up with all the people who will be there, even though they have an interest in sport themselves. We are targeting them and we are also targeting people who would usually go to London that year and encourage them to come to Ireland. We are organising a number of cultural events in Dublin, Kilkenny, Galway and places like that. We are working hard and we are trying to target the displaced people who might otherwise go to London. In spite of being criticised about not getting teams, we are doing well in the tourism and business part of it. We have got €200 million worth of contracts already and we are expecting that to rise to €500 million. It is all good news for the country.
I am delighted to hear about all the efforts being made by the Minister of State to bring visitors into the country. I hope that he drags some of them to the midlands and not just to the more established tourism areas.
He left out Mayo, which surprised me.
We have a fantastic product in the midlands and I feel that it has not been exploited to its full potential. We have a science centre in Birr and we have got fabulous bog lands and waterways. I really feel that the potential is there and I encourage the Minister of State to visit us and exploit that potential.
Does the Minister have any specific figures on the increase in visitors from countries in respect of which a visa waiver was granted to increase trade? Has there been an increase in trade from those countries? I ask the question because business people who are interested in trading in Ireland are having difficulty in obtaining visas. It is a hindrance to the development of trade in Ireland. It has been raised with me by Ennis Chamber of Commerce, among other trade bodies. Has the Government those specific figures and does it intend to address the problem more broadly than in respect of the emerging markets, which have already been granted a visa waiver?
The number of tourists coming in from Australia and the developing markets - mainly India, China and the Middle East - has seen double digit growth in 2011. Growth was at 18% up until the middle of the year, albeit coming from a very low base, and the overall figure was 10%, which is really good. Our biggest growth was from those new emerging markets, albeit a small part of the tourist numbers that come to Ireland.
It is a little bit hard to read it in some ways due to the UK waiver system, because if a person already has a UK visa, he or she does not need a visa to come into Ireland anymore. Therefore, when we see the number of visa applications for Ireland falling, it is hard to know whether we interpret that as fewer people coming in or as people just using their UK visa. However, the Government understands that we need to do a little bit more on visas. I had a bilateral meeting with the Minister for Justice and Equality about that. When I travelled to India and the Middle East, that message comes back strongly. It was an issue raised at the Global Irish Network. Notwithstanding security concerns, we can do more on the visa front and in giving visas to investors.
One factor we must take into account is the fact that we are part of the common travel area with Britain. Giving people access to Ireland must be co-ordinated with Britain, or we may lose the common travel area. I would love Ireland to be in Schengen, so that people would not need a visa to travel from other parts of Europe to Ireland. We cannot do that now because we would have to leave the common travel area, which would mean border controls with London. It is a price that is too high to pay. We will still do as much as we can on visas.
I do not want to rain on the parade in respect of the growth in passenger numbers, but while I accept there has been a modest increase in tourism activity, have the numbers presented factored in the ash cloud of 2010? Has the Minister seen a particular spike in tourism growth as a result of the reduction in VAT?
Growth has been quite bumpy. Growth was very high in the first half of the year, which probably reflected the fact that the ash cloud depressed the number of tourists coming to Ireland in the second half of the previous year. Growth was slightly negative in some of the later months of the year, but if the airport figures area anything to go by, December is very good. There was an 11% increase in people using Dublin Airport in December 2011, when compared with December 2010. That is very encouraging. Events in the world economy and in the eurozone could present problems for us this year. It will be hard for us to meet our 4.5% growth target if our major markets go into recession.
The VAT change helped to address the perception of Ireland as a high cost destination. A visitor attitude survey published today shows that there has been a considerable improvement in visitor attitudes to Ireland as a high cost destination, particularly among British tourists, which is really important.
We know that there has been a huge drop in the internal market at the airports. I hope that we can look at more initiatives for the internal market. There has been an increase internationally, which tapered towards the end of last year.
With the Olympic Games approaching, are we in contact with our counterparts in the North? Many events have been organised in the North which can feed into our events, and vice versa. There is a great scope to attract people from both sides of the Border and from other countries.
There has not been a big fall off in domestic tourism. There has been a big fall off in the number of people flying domestically, which is a different thing. That is because people can drive on motorways to almost anywhere in Ireland in two hours. Why would someone get on a aeroplane when he or she can travel quicker and cheaper by car?
There has been some contact with the North. Tourism Ireland is an all-island body. My meeting with the Minister for Enterprise, Trade and Investment, Arlene Foster MLA will be taking place in the next couple of weeks, so we will certainly be discussing things then. This is a very big year for Northern Ireland, due to the Titanic celebrations and there will be some events in Cobh as well to match that. The Irish Open is also going North for the first time, which some people have mixed feelings about, but that does not signal much more co-operation between the North and South when it comes to tourism.
It is open to all.
8Deputy Dara Calleary asked the Minister for Transport; Tourism and Sport if he has received the report of the taxi review group; when he expects to submit to Cabinet; when he expects to publish the taxi review group findings; and if he will make a statement on the matter. [1522/12]
I announced the taxi regulation review on 8 June 2011 in line with the commitment in the programme for Government. The review group under my chairmanship completed its report in December last and I have circulated the report to relevant Ministers and their Departments with a view to early consideration of the outcome of the review by the Government. Once the Government has had an opportunity to consider the review, I expect to be in a position to publish it on my Department's website and to outline the Government's response to it.
I would like to take the opportunity to thank all those who made submissions to the review group and who participated in the group. I was heartened by the constructive contributions of the many diverse groups with an interest in the taxi industry. The review considered a wide range of issues relating to the taxi sector, including current regulatory policy and practices, licensing systems, enforcement and future dialogue with the taxi sector. I am confident that the recommended measures in the review will enable necessary further reforms of the sector to allow consumers to have confidence in the taxi system while also ensuring that legitimate and competent operators and drivers can be rewarded fairly by operating under a regulatory framework that is adequately enforced.
I thank the Minister of State for his comprehensive reply. However, the question remains: when does he expect to be in a position to publish the report? When will he be in a position to bring forward any legislative changes that he desires or that the Cabinet so directs?
The report has been circulated among the relevant Departments. The committee had its last meeting. Once the Government has considered the report, it will be published. It will then be a priority to address the primary and secondary legislative needs.
The Minister of State is not in a position at this stage to give an indicative guideline or timeframe.
The indicative timeframe will be in the next month or so.
Prior to its publication I assume it will go back to the committee for consideration.
The committee has completed its work.
We have not seen the review.
It has. The final document was signed off by the committee. I chair it so I know it has seen it. The work has been completed and recommendations have been made.
I meant the Oireachtas committee.
Subsequent to it being published it can be considered. I have spoken to the committee Chairman, Deputy Ciarán Lynch, and I already indicated I am willing to go before the committee to discuss it.
That is fine.
Excellent.
9Deputy Mary Lou McDonald asked the Minister for Transport; Tourism and Sport the position regarding the developments at the sports campus at Abbotstown, Dublin; the further developments he intends to undertake there; and a timeframe for same. [1564/12]
The Deputy's question relates to developments at the Sports Campus at Abbotstown in Blanchardstown in Dublin.
At its meeting on 21 June, the Government approved my proposals for the development of the National Sports Campus at Abbotstown in Blanchardstown on an incremental basis. In particular I have asked the National Sports Campus Development Authority, NSCDA, to proceed with the development of a national indoor training arena, which would include an indoor track. I am acutely aware of the difficulty of securing capital funding from the Exchequer because of the financial difficulties facing the Government. I have, therefore, asked the campus authority to explore other avenues of funding such as philanthropy and or the sale of some of the land. I have also asked the campus authority to continue to pursue the policy of developing elements of the development control plan in partnership with the GAA, FAI, IRFU and Irish Hockey Association. As provided for in section 7(8) of the National Sports Campus Development Authority Act 2006, the Department of Agriculture, Food and the Marine is arranging for the transfer of the land to the NSCDA.
Abbotstown House is a protected structure under the Fingal County development plan. I believe that Abbotstown House would benefit from having an anchor tenant and that the Irish Sports Council would be an ideal tenant in this regard. This matter is being examined by the NSCDA in consultation with the Irish Sports Council and the OPW.
In parallel with the core National Sports Campus project, the campus authority is also continuing its strategy of redeveloping and refurbishing existing buildings on the Abbotstown site for use by the wider sporting community, in particular the national governing bodies of sport. The OPW is assessing tenders for the refurbishment of the former Marine Institute Building as the sports HQ and it is expected that work on the project will commence in February and will be completed prior to the end of the calendar year.
I take this opportunity to inform the House that 2011 was a record-breaking year for the National Aquatic Centre, which forms part of the campus, with visitor numbers totalling 825,051 which is an increase of 12.5% on the previous year.
Thank God the Bertie bowl did not go ahead. Is there a timeline with regard to the proposal that the Irish Sports Council might use it? In advance of the London Olympics have there been any discussion or confirmations of further teams which might use Abbotstown in preparation for the games?
The Irish Sports Council is working from rented offices in Blanchardstown and it is proposed that it will move to Abbotstown House. No decision on this has been made for certain because we need to examine the house and work out how much it would cost to refurbish it so it would be able to take the Irish Sports Council. We must also work out when the lease where it is ends to ensure any move is value for money. It is a decision that should be made this year.
With regard to the London Olympics I am not aware of any additional teams which have agreed to take up training facilities at the Sports Campus. Quite a number will use the National Aquatic Centre which is very welcome. We have learned two things, the first of which is if we want teams to train here we must have the facilities, which we do in the National Aquatic Centre and the pool in Limerick but not when it comes to track and field events and gymnastics. We hope to change this by developing the Sports Campus. We also learned that cities in the UK gave cash incentives to teams to train there and the Minister of State, Deputy Ring, and I took the view that rather than spending €20,000 or €30,000 to entice the Tajikistan basketball team to come to a town in Ireland the money would be better spent on facilities and sports people in Ireland.
I welcome the Minister's reply and compliment him and the Minister of State, Deputy Ring. It is important that we put on the record spending €20,000 or €30,000 would have been a futile exercise and the Minister was correct in the approach taken. It is imperative that we develop the indoor facilities at Abbotstown as we lack these. We saw on the recent "Prime Time" programme that a water polo tournament will be held in the National Aquatic Centre which is being utilised to its maximum. It is an example of something the previous Government did well and I accept this. The Minister and Minister of State used common sense with regard to trying to bring people here. Those who are complaining about the Government's approach should read the reply to this question. The Minister and Minister of State with responsibility for sport are prepared to invest in the development of facilities. We should look at the long-term future rather than the 2012 London Olympics. It is important that we have a strategic plan for all sports.
I thank the Deputy for his comments and I agree with him wholeheartedly in this regard. I must be fair to the previous Government. I also agree with Deputy McLellan as I am also glad the Bertie bowl was not built. I do not think it was necessary as the Aviva is a great stadium, as is Croke Park. One thing the previous Government did was to build the National Aquatic Centre and notwithstanding the initial problems that occurred with the roof and some of the management-----
It leaked.
-----it is an outstanding facility. In fairness to the previous Government it was a good decision and quite visionary to go ahead with the project when people were critical at the time.
10Deputy Richard Boyd Barrett asked the Minister for Transport; Tourism and Sport if he will clarify if a board member of the Dun Laoghaire Harbour Company (details supplied) has returned wrongly claimed travel and subsistence expenses as reported in the national media; and if he will make a statement on the matter. [1633/12]
34Deputy Joe Higgins asked the Minister for Transport; Tourism and Sport if he will clarify whether a board member (details supplied) of the Dun Laoghaire Harbour Company has returned wrongly claimed travel and subsistence expenses as reported in the national media; and if he will make a statement on the matter. [1634/12]
I propose to take Questions Nos. 10 and 34 together.
The question relates to the issue of expenses by a board member of Dún Laoghaire Harbour Company. I previously responded to Deputy Boyd Barrett's questions on this matter on 29 September and 14 December last. Dún Laoghaire Harbour Company confirms each year that it complies with the relevant travel and subsistence regulations. As I said previously, I understand that the matter of repayment of flight expenses has been resolved and that they will be repaid by mid-2012.
In his reply the Minister used the future tense which means the expenses have not been repaid. Will the Minister clarify this? When I brought this issue to the attention of the Minister in September, the report was that Mr. Nagle had committed to-----
We do not mention names.
I apologise. The director in question had committed to pay back the money, which we should remind ourselves were claims made for expenses for travelling from Dubai to board meetings for Dún Laoghaire Harbour Company. In that year he claimed €10,250 as against, for example, the CEO who claimed only €3,000 and a small amount claimed by another board director. In September it was stated he would pay it back but now the Minister is stating it would be close to a year before he does so. I find this extraordinary. While I am at it-----
We are over time. I will ask the Minister to reply and then call Deputy Boyd Barrett again.
I do not have day-to-day involvement in the running of the Dún Laoghaire Harbour Company. It is a semi-State body governed by its board and managed by its CEO. However, I am advised in writing by the chairman that the director in question has made a written commitment and that he will repay the cost of the flights and that such payment will be made in full by mid-2012.
The reason this is important is because these same directors and the chairman the Minister mentioned are trying to impose between pay cuts of between 20% and 30% on workers earning a fraction of what they do. They have also forcibly made redundant five harbour police, with whom they are also involved in a dispute because they made a mistake and overpaid them and are now seeking the money back. There is much anger and grievance because the same people making these decisions are overclaiming for expenses and not paying them back.
Will the Minister confirm what precisely is the salary of the CEO of the Dún Laoghaire Harbour Company? According to my figures, in 2010 he was paid €168,000 per year in total. There was one recent monthly payment detailing how he received €14,000 per month, which would add up to €168,000. Will the Minister confirm if, in addition, he gets pension contributions amounting to €42,000 and PRSI contributions amounting to €18,000 per year paid? That would put the total cost of the CEO at €228,000 per year. That is pretty awful when workers are being forced from their jobs in the harbour and others are being asked for pay cuts of between 20% and 30%.
The fees paid to the chairman and members of the board are modest and much less than what the staff are paid.
I am talking about the CEO.
I do not know his remuneration package off the top of my head but I can provide those details to the Deputy by correspondence. I imagine the figures are much lower in 2012 than they were in 2010, in line with reductions in CEO pay and remuneration. I am very sad that workers have lost their jobs at Dún Laoghaire Harbour Company but this has come about because of a loss of business. People cannot be kept employed in a job that is not there to be done any more.
They guys giving them the axe are being paid €168,000 per year.
There is a dispute which is being dealt with by the Labour Relations Commission.
12Deputy Mary Lou McDonald asked the Minister for Transport; Tourism and Sport the position regarding the progress of the LUAS extension [1579/12]
Under the new capital investment programme for transport to 2016 the priority for funding is to ensure that investment made to date is protected and safety standards are maintained. Beyond that I have provided funds to advance a small number of projects which will add value to the existing network and support economic recovery. In this regard I have provided funds to allow the commencement of construction of Luas Broombridge or BXD.
This project has been prioritised given that it will advance the proposed long term integration agenda for public transport in the greater Dublin area and create a Luas network through linking the existing lines, serve areas of the north city such as Grangegorman, Phibsborough and Cabra and integrate with rail services on the Maynooth and Dunboyne lines as well as quality bus corridor, cross-city and city centre bus services.
The railway order application for this project was submitted to An Bord Pleanála in June 2010 and a decision is awaited. The National Transport Authority and the Railway Procurement Agency have made some appropriate preparatory arrangements but key decisions and actions which will determine the construction start must await the outcome of the planning process.
We had debates on the different projects and Luas BXD is one that has been chosen to move ahead. The EU and IMF were critical of us cutting capital spending, which should be borne in mind. We argued that cutting the capital spend, including metro north, was not good because of all the work that was put in and potential job creation. The Minister has indicated that we are awaiting the conclusion of the planning process but new contracts will come in at lower rates than previously as prices in the past were much higher; we would see more realistic prices today.
I hope this is not dragged out for too long and the process can conclude promptly. I would love to know when construction will start but the Minister does not seem to be in a position to indicate the timeframe. I hope it will not be too long as this capital project must be pushed on.
I concur with the Deputy's comments. We must wait to see if we get a rail order, which will have conditions attached. Only then can this go to tender. With regard to the capital investment plan, we only have funds to start construction from 2015, and it is hoped the project will be running by 2017. If a funding mechanism can be provided to bring forward the commencement of works to next year, for example, I would be very enthusiastic about it. We all agree that it would be preferable to have the works on O'Connell Street completed by Easter 2016 rather than being ongoing at that time.
I would like to see more capital projects going ahead but they cannot, as people will know, because of the current financial position. The IMF and EU may have taken the view that we should not have cut capital as hard as we did but their view is that we should have hit current spending harder. That spending includes public sector pay and social welfare, so I am not sure if the view would be shared by the Deputy opposite.
It is interesting that Sinn Féin's stimulus plan, which was published before Christmas, had a proposed €7 billion investment in the economy, most of it borrowed from the European Investment Bank, but not a euro going to transport. I am not sure if Deputy Ellis lost the battle at the Sinn Féin front bench but it was interesting nonetheless.
We did not lose any battles on capital projects and we believe projects should proceed. We made such a point. The timescale for these projects is very long and the Minister has mentioned dates in 2015 and 2017. The 2016 commemorations are coming up and I would like to see at least one of these projects in place by then.
In Ballymun we collected many contributions along the routes so will the same process occur along the routes for this project? We cannot get the contributions back for people who paid towards the metro north and we do not know when it will come about; that is wrong. Have contributions been made with regard to this line?
It is important to bear in mind with regard to contributions made along the metro line, they are much less than the amount spent on the preparatory planning and enabling works.
The total was approximately €3.1 million.
Some €180 million has been spent. Currently there is no development contribution scheme along the BXD route. It is a matter for the city council and it would be appropriate to have discussions with the council on some form of contribution, particularly with regard to property along the route, including undeveloped sites that will increase in value because of the project.
13Deputy Jerry Buttimer asked the Minister for Transport; Tourism and Sport his plans for Cork Airport; and if he will make a statement on the matter. [1352/12]
16Deputy Joe Carey asked the Minister for Transport; Tourism and Sport when he will make a decision in relation to the future ownership and operation of Shannon Airport in the context of the report (details supplied); if he will publish the report; and if he will make a statement on the matter. [1357/12]
35Deputy Kieran O’Donnell asked the Minister for Transport; Tourism and Sport his plans for the future strategic development of Shannon Airport; and if he will make a statement on the matter. [1359/12]
40Deputy Pat Breen asked the Minister for Transport; Tourism and Sport his views regarding the future of Shannon Airport; and if he will make a statement on the matter. [1350/12]
41Deputy Kieran O’Donnell asked the Minister for Transport; Tourism and Sport his plans for the future of Shannon Airport; and if he will make a statement on the matter. [1358/12]
42Deputy Michael McNamara asked the Minister for Transport; Tourism and Sport the detailed terms of reference of consultants (details supplied); the company’s relevant experience with airports here and the United Kingdom; and if he will make a statement on the matter. [1349/12]
I propose to answer Questions Nos. 13, 16, 35, and 40 to 42, inclusive, together.
I have already outlined in the House today the current position on the future of Cork and Shannon airports and the background to the commissioning of consultants to carry out a study of the options for the future ownership and operation of both airports. The tender process used to select the consultants took into account, among other factors, the degree of each tenderer's expertise and experience of the aviation sector, nationally and internationally. The terms of reference for the study were essentially to identify and analyse all likely options with regard to the ownership and operation of the two airports and having regard to all relevant factors to make clear recommendations to me and the Government as to the optimal ownership and operational structure for the airports.
I thank the Minister for his reply and congratulate him on demonstrating a political leadership which was lacking in the previous regime with regard to the Cork airport. As part of the consultative process there was real engagement and I compliment the company involved. I hope the Minister takes on board the strategic importance of Cork Airport, particularly given the location and catchment area of approximately €1 million. If it is allowed, it can become a key player in our transport infrastructure. It will require a very strong commitment from the Government to be held in State ownership and a business plan. It must be allowed the ability to grow and be autonomous within the Dublin Airport Authority. It is a difficult time in the aviation industry and the Cork facility is suffering. It deserves to be kept in State ownership and should have autonomy within the DAA. There must be space to be able to grow and develop as it is a critical facility.
I will take the Deputies who asked the questions first.
I commend the Minister for dealing with the issue after years of inaction on the part of the previous Fianna Fáil-led Governments. The matter is finally being dealt with. Shannon Airport has paid a very heavy price, losing 52% of passengers over the past three to four years. I welcome the recent public announcements by the Minister, Deputy Varadkar, on a visit to County Clare, that it is his desire that Shannon Airport would again become the second busiest airport in the country after Dublin. I would like to establish when he intends to bring the memo to Government and when a decision will be made. We need clarity and certainty. Shannon and the mid-west region can begin an economic fightback. The decision will be a catalyst for that to happen. I would also like to hear the Minister's views on the conditions of workers in the airport. Could he offer any thoughts in that regard? It is critical that they are not made the scapegoats in the decision that is to be taken.
I thank the Minister for taking action on this issue. Shannon Airport is probably the most vital piece of infrastructure for Limerick, the mid-west, Shannon and County Clare. Everyone, across all party lines, is agreed that the situation cannot remain as it is. We must examine the issue. That is why I welcome the fact that the Booz & Co. report has been commissioned by the Minister. What is important now is that we get a timescale on when the Minister proposes to bring the matter to Cabinet and for the implementation of the plan. We must reach a point where Shannon Airport is able to operate independently of Dublin. It is difficult for any airport to compete with its employer, namely, the Dublin Airport Authority, DAA. The operation of the airport is underpinned and conditional upon Shannon Airport not being laden down with debt, which is the scourge of any business in terms of being able to function. I commend the Minister on bringing the report forward but we need to know the timescale he envisages for the implementation of the plan and the details thereon.
My specific question relates to the past experience of Booz & Co. While I am aware from media reports that it has past experience of the sale of airport, the key recommendation is that Shannon Airport would remain in State ownership. I am relieved to hear that as I would be most disturbed if there was any proposal to remove anything of the strategic importance of Shannon Airport from State ownership.
I join with Deputy Carey in expressing concern for the future of the workers. I wonder whether Booz & Co. has sufficient expertise in the area. There is a proposal to devolve the airport to a State-owned undertaking but it is essential that such an undertaking would have sufficient resources to make Shannon work and to ensure the future of Shannon Airport as a cargo airport, an avionics airport and an industry airport but primarily as a passenger airport which is essential for the tourism sector of the entire mid-west. The Minister does not need reminding of that as he is the Minister primarily responsible for tourism. I would welcome his comments on the expertise of Booz & Co. on how it is proposed to ensure the future undertaking which might run Shannon Airport - if it is devolved from the DAA - will have the resources and cash-flow necessary to invest in the airport, as the Dublin Airport Authority has been doing in the past to ensure that it remains a 24 hour international airport of the calibre required to drive the economy of the entire mid-west region of Limerick, Clare and north Tipperary.
I did not manage to respond to the Minister on the matter that arose on another question but he indicated that certainty would be brought to it over the course of the coming year. I hope that was a broad, general statement and that he intends to deal with it a lot more quickly than by the end of the year. I would welcome certainty on the timescale.
Comments by Government Members seem to indicate that independence is the solution for Shannon. From my point of view, that is absolutely not the case. Shannon Airport needs more autonomy within an overall structure. I saw media reports in which a few kites were flown either by the Minister or by-----
Unfortunately, more kites than flights.
-----some people within the Department who have access to the report.
The previous Minister, Mr. Dempsey, flew some kites.
Prior to Christmas we saw various proposals being put forward as the preferred option. One such proposal related to the development of a management structure similar to that of CIE with the three airports having an independent structure within an overall umbrella aviation company. I favour that approach as the way forward and would strongly support it. I welcome the Minister's comments in that regard.
Many questions were asked and I hope I do justice to Deputies in terms of replying to their questions. Booz & Co. has had extensive experience both in terms of infrastructure and airports. I can provide the Deputy with a more detailed document if he requires on the background to some work it did internationally. Many people would accept the company did a very good job, although I accept there was scepticism about it initially. One of the things I asked it to do was to spend time in the relevant regions and with the various sectoral interests, which it did. It did it well and I was pleased with the work carried out.
It is important to put on record the motivation of the Government on the issue, which is to make sure we have strong airports in both Cork and Shannon, Cork being a passenger airport and a business airport for the future. Cork is working very well as an airport but the difficulty there is the enormous debt that has arisen from the new terminal which it will not be able to pay off on its own. Inevitably, over time the debt will have to be paid off by passengers using Dublin Airport. Shannon Airport has a great future as a passenger airport but also as one which is concerned with avionics and aero-industry but the status quo there is not working and the airport is in decline, which is why we need to have a change of policy in that regard.
When it comes to public ownership I agree with the Deputies' comments. It is intended that the airports will stay in public ownership but that is not to say that there cannot be private sector investment and involvement in the airports in a way that is not the case currently.
When it comes to timescale, I need to spend a little more time in consultations and discussions. I have not yet had a proper chance to talk to the unions, for example, some of the stakeholders in the various regions and some of the businesses that are interested in investing. A memo for information will go to Government this month or next month and then a memo for decision will be prepared later on in the year. Given that any decision to proceed with separation could require legislation, getting it all done this year is ambitious but possible.
Regarding the workers, I fully understand that they want assurances about their pension, terms and conditions and security of tenure. I should point out that nobody in the DAA at the moment in any of the existing airports has security about their pension because of the huge pension deficit, so there is an opportunity there for the workers. Nobody has security about their jobs because further redundancies are planned, albeit voluntarily, and nobody in the entire country has security about their terms and conditions unless they are covered by the Croke Park agreement, which the staff in the DAA are not. Let us be realistic about the current position.
We have a lot of semi-State companies and State agencies and it is important that the workers in semi-State companies and in State agencies are respected. At the same time, we must remember that semi-State companies and State agencies should not be run in the interest of the workers. The HSE should be run in the interests of patients not the staff, schools should be run in the interests of children not the teachers and airports should be run in the interests of passengers and the broader economic interests of the region not just those who work there. I am sure everyone would agree with that. Written Answers follow Adjournment.
The Dáil adjourned at 5.50 p.m. until 10.30 a.m. on Tuesday, 17 January 2012.
