Dáil debates

Tuesday, 26 May 2009

Other Questions

Airport Development Projects.

4:00 pm

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 57: To ask the Minister for Transport if he has communicated concerns to the Dublin Airport Authority over delayed or cancelled aviation infrastructure projects in view of deteriorating finances; and if he will make a statement on the matter. [21169/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Dublin Airport Authority, DAA, operates under a clear commercial mandate and its capital investment programme is entirely funded from its own internal resources with no Exchequer funding involved. Accordingly, decisions on the delay or cancellation of aviation projects fall within the responsibility of the management and board of the DAA. Following the announcement of its annual results for 2008, which saw a drop in group profit of 28% from 2007, the DAA has been reviewing all aspects of its business, with a particular focus on costs, including capital development and operational expenditure.

The DAA is well advanced in delivering a €1.28 billion investment programme to upgrade terminal and airfield facilities including Terminal 2. The DAA has reduced its investment plans at Dublin Airport for the 2010-14 period by about 50% to less than €400 million to take account of the current economic downturn. A number of major projects, including the planned new second runway and additional aircraft parking areas, will be deferred. These projects will be reactivated when appropriate circumstances dictate and these decisions should be made on the basis of the DAA's commercial assessment.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Tá mé sásta leis an bhfreagra sin.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The cutback in 400 jobs at the DAA is of great interest to the workforce there. Despite the aviation downturn, people ask why this was necessary. Does the Minister have views on this? He recently appointed a new head of the Dublin Airport Authority. Did he give any guidelines or lay down directives on management of the DAA over the coming years under the administration of the new chairman?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Any proposed cut in jobs, whether in a semi-State body or in the private sector, is of concern. I do not interfere directly in the day to day operation of the DAA. All aspects of the aviation industry are suffering greatly. There are some small signs of recovery but in the current economic circumstances the company has a duty and a responsibility to live within its means and that is what it proposes to do in discussion with the trade unions.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

In respect of cost, now is the best and most effective time to undertake these infrastructure projects. Will the Minister communicate with the DAA to ensure it will prioritise whatever projects it can? These must be built anyway because the infrastructure will be needed when the economic cycle changes and the Irish and world economies recover.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The DAA and I are conscious of what Deputy O'Dowd said. The DAA will advance planning for all projects and bring them as close to shovel-ready as possible before making a decision on whether the projects can go ahead and take advantage of any upturn.