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State Airports

Dáil Éireann Debate, Wednesday - 28 March 2012

Wednesday, 28 March 2012

Ceisteanna (1)

Timmy Dooley

Ceist:

1Deputy Timmy Dooley asked the Minister for Transport; Tourism and Sport when he expects to make a decision on the future of Cork and Shannon Airport; and if he will make a statement on the matter. [17163/12]

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Freagraí ó Béal (5 píosaí cainte)

The Deputy's question relates to the timeframe for making a decision on the future of Cork and Shannon Airports.

As I previously informed the Deputy, following receipt of the Booz report on the future ownership and operation of Cork and Shannon Airports, my Department is currently involved in detailed engagement with all relevant stakeholders on the issues involved.  When that process has been concluded, I will bring proposals on the future of these two airports to Government as soon as possible.  It will be a matter for Government then to make a decision on the issue.

My own view is that the current half-way house arrangement in place since 2004, whereby Cork and Shannon have their own boards but have limited autonomy from the DAA, cannot continue indefinitely. My objective is to have viable and sustainable operations in each of the three State airports, whatever structure is ultimately chosen by Government, and to make the necessary decisions in this regard in this year.

I thank the Minister. There is nothing particularly new in the statement he has just made. My understanding was that the Minister had said in the past that he intended to announce before Easter his decision on the future management and control of the two State airports, namely, Shannon and Cork, and that it was his intention to bring forward legislation by the end of the year. If it has not been brought to Government as of now, can we take it that a decision will not be made before Easter? Can I take it also that an announcement on the future of Shannon Airport will not be made during the Minister's visit to Clare on Friday? It would be helpful if he could give us a more definitive time as to when he intends to deal with the issue I have outlined to him on a number of occasions.

I am not trying to suggest in any way that it is not a difficult decision or that the Minister does not have many considerations to take into account, but he now has the benefit of the Booz report which sets out a number of key options. I am aware the Department has engaged with stakeholders to try to ascertain the best solution. There are many factors that require appropriate attention, particularly regarding the way the Minister would subvent or provide for Shannon Airport over a period of change. Clearly, all of those factors must play into any decision he would make. It would be helpful to all concerned if the Minister could give more clarity, first, on the timeframe for a decision of the Government and, second, when we will see the effects of that decision.

I thank the Deputy for the question. I will visit Limerick tomorrow and Clare the day after that to speak at a business function which I agreed to do several months ago and, therefore, there will not be any dramatic announcement on Friday that I would not make to the Dáil beforehand.

The position is that the Booz report has gone to Cabinet. It is being considered and has been published in redacted form, which I am sure the Deputy has seen and discussed at this stage. The entire issue involves engagement with various parties including the Department of Public Expenditure, which is a shareholder, and Shannon Development. The future role of Shannon Development is tied up with this and there is an engagement with the Department of Jobs, Enterprise and Innovation on that point. Also, the DAA Group is doing some work on the issues around separation and the barriers that would have to be overcome. It is taking a little longer than I might have hoped but very good progress is being made and it remains my intention to bring a decision in principle to Government in April, although it may be a week or two after Easter rather than before Easter as I had initially intended.

I thank the Minister for his clarity in that regard. Whatever the decision might be, I have made my position clear on a number of occasions. There is a necessity to retain the three airports under the CIE model we have talked about and identified in the Booz report. The importance of Shannon Airport maintaining its capacity to survive without access to funds is of great concern to many people in the region. In that regard, I urge the Minister to give serious consideration to the capacity of Shannon Airport to be able to continue to rely on a line of funding from the DAA in any structure he brings forward.

Whatever we do has to be a success and for an airport complex to be a success, it should not be reliant on subventions and should be able to break even, at the very least, and ideally turn a profit. We are moving away from the model of subventing airports. Subvention has had to be removed already from Galway and Sligo Airports as a result of cutbacks in public expenditure. The other regional airports have been informed that they will be expected to break even on an operational basis by 2014. Neither Shannon nor Cork Airports receive Exchequer moneys but I suppose one could argue that they receive an indirect subvention as being part of the DAA Group. If any model is to be a success, whether it is a CIE type model or independence, it is not a success if an ongoing subsidy or subvention is required. All of these airports should be able to turn a profit and at least break even. If it is the case that an interim arrangement is needed, so be it but the objective in the medium to long term should be a vibrant, profitable successful airport complex with many employees creating employment and revenues for the region and not something that is dependent on other people's labours, taxes and revenues just to exist.

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