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Aer Rianta Break-up.

Dáil Éireann Debate, Wednesday - 7 July 2004

Wednesday, 7 July 2004

Ceisteanna (39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52)

Joan Burton

Ceist:

43 Ms Burton asked the Minister for Transport his views on the future of the Great Southern Hotel group in the context of proposed new arrangements for Aer Rianta; if he has had consultation with tourism interests on this matter; and if he will make a statement on the matter. [20406/04]

Amharc ar fhreagra

Róisín Shortall

Ceist:

53 Ms Shortall asked the Minister for Transport the property or land owned and details of its ownership in the Shannon free zone it is proposed to transfer to the new Shannon Airport Authority; the estimate of the value of the property or land to be transferred; and if he will make a statement on the matter. [20401/04]

Amharc ar fhreagra

Dan Boyle

Ceist:

74 Mr. Boyle asked the Minister for Transport the reason he believes the proposed break-up of Aer Rianta carries with it significant financial costs. [18711/04]

Amharc ar fhreagra

Pat Breen

Ceist:

95 Mr. P. Breen asked the Minister for Transport if he intends putting any board member from Shannon or Cork on the new Dublin Airport Authority. [20276/04]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

104 Mr. Broughan asked the Minister for Transport if he has received a new business plan from the board of Aer Rianta for the development of the company and its three airports; his views on the plan; and if he will make a statement on the matter. [20404/04]

Amharc ar fhreagra

Caoimhghín Ó Caoláin

Ceist:

106 Caoimhghín Ó Caoláin asked the Minister for Transport the stage of development that has been reached with respect to the various business plans relating to the Aer Rianta break-up. [20519/04]

Amharc ar fhreagra

Aengus Ó Snodaigh

Ceist:

128 Aengus Ó Snodaigh asked the Minister for Transport the range and approximate value of Aer Rianta assets. [20521/04]

Amharc ar fhreagra

Aengus Ó Snodaigh

Ceist:

129 Aengus Ó Snodaigh asked the Minister for Transport his views on whether it is inappropriate that Aer Rianta be renamed in an Anglicised form; and if the Irish version of the re-named company will be prioritised over the Anglicised version. [20520/04]

Amharc ar fhreagra

Joan Burton

Ceist:

132 Ms Burton asked the Minister for Transport his views on whether passenger charges are likely to increase at Dublin Airport if plans for the splitting up of Aer Rianta proceed; the extent to which they are likely to increase; and if he will make a statement on the matter. [20405/04]

Amharc ar fhreagra

Liam Twomey

Ceist:

264 Dr. Twomey asked the Minister for Transport if he will make a statement on the future of the Great Southern Hotel group post the break-up of Aer Rianta; and the assurances that can be given to the staff at Great Southern Hotel Rosslare harbour regarding their future. [20711/04]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

269 Mr. Durkan asked the Minister for Transport the business plan, if it exists, for the running of the country’s main airports with a view to illustrating the continued viability and operation of each; and if he will make a statement on the matter. [20836/04]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

270 Mr. Durkan asked the Minister for Transport the way in which he sees Dublin, Shannon, Cork and the other regional airports operating on a profit making basis independently in the future; and if he will make a statement on the matter. [20837/04]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

271 Mr. Durkan asked the Minister for Transport his preferred options in respect of the running of national and regional airports in the future after the break-up of Aer Rianta; and if he will make a statement on the matter. [20838/04]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

272 Mr. Durkan asked the Minister for Transport the extent to which he has examined the potential profitability of each of the airports in the aftermath of the break-up of Aer Rianta; and if he will make a statement on the matter. [20839/04]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 43, 53, 74, 95, 104, 106, 128, 129, 132, 264, 269, 270, 271 and 272 together.

The work which has been done by my Department's advisers in co-operation with Aer Rianta management and their advisers has underscored the fact that there are some major challenges facing the State airports and these challenges need to be addressed.

In the context of the proposed amending legislation to give effect to the restructuring of Aer Rianta currently before the Dáil, I have had numerous Government discussions informing my Cabinet colleagues on the background issues relating to the restructuring as well as the broad financial projections for each of the airports which were compiled by PricewaterhouseCoopers. I have in the last week received a ten year business plan prepared by Aer Rianta. While there are some differences between the plan and the PricewaterhouseCoopers projections the broad thrust is consistent and it confirms that there are significant pre-existing financial challenges facing the State airports.

My view is that the restructuring offers the best means of addressing these challenges. Under the State Airports Bill, it will be a matter for the new authorities, when established, to prepare and submit for approval detailed business plans for approval by myself and the Minister for Finance. These plans will be a basis for assessing the operational and financial readiness of each airport before any transfer of assets. Issues relating to Aer Rianta's main subsidiaries such as Great Southern Hotels group will be carefully considered in the course of the restructuring process.

The restructuring is designed to strengthen and expand each of three airports and to give both Shannon and Cork a fresh start. Through more focused commercial operation, all three airports can perform better and each can play a greater role in stimulating and supporting regional and national economic activity to the benefit of their customers, both airlines and passengers, and of Irish tourism, trade and industry. It is general policy that the three State airports should be in a position to provide cost competitive and appropriate infrastructure and to operate on a sustainable commercial basis in meeting the current and future needs of users.

I have already announced the board-designate for the Dublin Airport Authority which brings together people of the highest calibre who, in combination, possess considerable international and national aviation expertise and proven financial and business acumen. The Dublin Airport Authority will include worker directors and as such will represent all employees, including those at Cork and Shannon airports in advance of asset and staff transfers.

In the case of Dublin Airport, passenger traffic is forecast to grow to 30 million passengers per annum by around 2020. The Dublin Airport Authority must ensure the provision of adequate and cost effective infrastructure capacity to cater for this growth and make the appropriate case to the independent aviation regulator for the financing of this investment in the context of the next determination of airport charges.

Shannon Development is the State agency charged with regional and economic development in the mid-west region. My colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, has been in discussions with the chairman and board members of Shannon Development to explore how best Shannon Development and the proposed Shannon Airport Authority can contribute to furthering the interests of the mid-west region. One of the options under consideration is the transfer of the assets of the Shannon Free Zone to the new airport authority. I understand that other options have emerged in the course of the Tánaiste's discussions with the board and that these are also being considered. Accordingly, a final decision on the most appropriate option has not been made as yet. In reaching a decision on this issue, it is the intention to put in place the most sensible and efficient structures and to manage the region's most valuable and strategic assets so as to optimise their benefits to the entire region.

As regards the naming of the new airport authorities, the State Airports Bill names the airport authorities in Irish and English and there is no intention to give the English titles undue priority over the Irish. In practical terms, it is reasonable to expect that the new airport authorities will market themselves internationally using the English title. As I indicated in the Dáil yesterday evening on Report Stage of the State Airports Bill 2004, I will ask the new boards to adopt a bilingual policy when using their respective titles particularly in the vicinity of each airport.

The assets of Aer Rianta comprise the three State airports and its subsidiaries such as Great Southern Hotels and Aer Rianta International. At end 2003, the Aer Rianta annual accounts indicate that the net book value of Aer Rianta's tangible fixed assets amounted to €706.9 million and the value of financial fixed assets was €175.9 million.

As regards the future operation of the State and regional airports, it is the policy of the Government to encourage as wide a range as possible of reliable, regular and competitive air services to and from Ireland. The central tenet of this policy is the belief that a strong, competitive and efficient network of air links are vitally important for developing our trade and tourism sectors, particularly having regard to our island status and peripheral location.

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