I thank the Chairman and the committee for facilitating consideration of this Dáil motion to approve the terms of four important aviation agreements between the European Union and Canada, Georgia, Moldova and Jordan. The European Union’s external aviation policy has developed gradually, particularly over the past decade since the European Court’s so-called open skies ruling in 2002. This ruling clarified that the European Union had legal competency in some matters relating to the Union’s external aviation relations. In particular, the ruling has allowed the Union to negotiate a range of EU aviation agreements with third countries since 2002.
The provisions of such agreements prevail over the relevant provisions of any existing bilateral air services agreements between individual member states and these countries. Ireland has always been supportive of the European policy of negotiating such agreements with neighbouring countries. The Dáil has approved the terms of a number of very similar agreements in the past, such as the EU aviation agreements with the United States, Israel and the Balkan countries.
The agreements with Canada, Georgia, Moldova and Jordan were negotiated over a number of years and were signed between 2010 and 2012. The agreements have been applied provisionally since signature pending full ratification by all 28 member states of the EU, which can take several years to complete. The European Commission led the negotiations leading to the four agreements and consulted with stakeholders throughout the process, including the member states, airlines, airports, and labour organisations.
Ireland is among a number of member states that still have to complete domestic procedures to allow the agreements to be fully ratified. The purpose of the Dáil motion is to allow the Government proceed with such ratification as soon as possible. The agreements are largely based on existing European aviation law that is already in force in Ireland. For this reason no additional Irish legislation is required to allow Ireland ratify the agreements. For administrative efficiency and to minimise the Dáil time required, Dáil approval is being sought for all four agreements in one motion.
International aviation agreements generally follow a prescribed format and these EU agreements are no different in that regard. The four agreements are quite similar in content. The main issues that the agreements provide for are as follows: market opening in terms of access to routes and capacity, on a reciprocal basis; promoting regulatory co-operation in the field of aviation; promoting air services based on competition among air carriers with minimum government interference and regulation; and promoting non-discrimination and a level playing field for air operators.
The agreement with Canada is by far the most significant for Ireland. The development of the market for air services between Ireland and Canada since the agreement was signed is a good example of how such agreements stimulate growth and facilitate competition in the market. In 2014 Aer Lingus launched direct services to Canada for the first time since the 1970s. In addition, three Canadian airlines now operate direct scheduled services between the two countries – Air Canada Rouge, Air Transat and Westjet. Westjet, is a successful low-cost Canadian airline and the seasonal service it launched to Ireland in 2014 is the airline’s first transatlantic route. This new choice of routes and airlines is obviously of huge benefit for tourism and trade, and also the many Irish emigrants in Canada.
In the case of the other three countries, there are only very limited direct services to and from Ireland. Air Moldova operates a seasonal service between Moldova and Ireland, but there are currently no direct routes between Ireland and Jordan or Georgia. However, even without direct services to or from Ireland, the agreements with these countries can still be beneficial to Irish airlines, as they allow Irish airlines to freely operate services to these countries from any EU member state.
All four agreements are mixed competency agreements. This means that as well as the EU being a party to the agreements, Ireland and the other EU member states are also parties in their own right. Hence the need for all member states to ratify the agreements individually.
There is a standard clause in EU aviation agreements dealing with dispute resolution procedures. This stipulates that the expenses of any arbitration under the clause will be shared between all the parties, including Ireland. Such arbitration expenses arise very rarely under such agreements and in any case such expenses would not be high. Nonetheless, this clause of the agreements is deemed to create a potential charge on public funds and this is one of the reasons the approval of the Dáil is required under Article 29.5.2° of the Constitution.
I avail of the opportunity to give the committee a short update on national aviation policy. As an island nation, aviation plays a crucial role in Ireland’s economy. It is essential for our tourism industry, for our trading relationships and fundamental for connecting Ireland with the rest of the world. We are far more dependent on aviation than many of our continental neighbours and trading partners. This is why I believe it is so important to provide an appropriate policy framework within which the sector can continue to develop and grow to underpin Ireland’s economic recovery. With this in mind, a new national aviation policy has been under preparation and is close to finalisation. I intend to publish the new policy document in the near future. This will address all aspects of aviation policy from safety, security and economic regulation, to competition and connectivity issues. It will reiterate Ireland’s support for the EU external aviation policy and for EU aviation agreements such as the ones before the committee today.
I thank the Chairman for his time.
