Oireachtas Joint and Select Committees

Tuesday, 10 February 2015

Joint Oireachtas Committee on Transport and Communications

daa: Chairman Designate

12:10 pm

Photo of Darragh O'BrienDarragh O'Brien (Fianna Fail) | Oireachtas source

I thank Mr. Ó Ríordáin for his comprehensive statement. I have a few questions, which I will ask together.

In Mr. Ó Ríordáin's statement, he said he would be seeking the committee's support for his argument that remuneration policy should reflect the equivalent post in the private sector. He said that he makes that argument even more strongly now, both in respect of base salary and in reintroducing performance-related pay at chief executive level. Before the committee can decide whether to support that argument it needs to know the levels of pay and bonuses Mr. Ó Ríordáin is proposing for Mr. Toland. Could Mr. Ó Ríordáin comment on this? If that bonus structure is agreed - Mr. Ó Ríordáin refers to performance-related pay so it is effectively a bonus - on what basis are the targets set and who would be assessing the chief executive's performance in that regard? Before the committee makes a decision, it would need some more details.

I will focus on Dublin Airport in respect of it being a transatlantic hub. It is very interesting to see that three-quarters of a million passengers, which is a record number, connected through Dublin. Perhaps Mr. Ó Ríordáin might be able to expand on future plans. The free clearance both in immigration and customs at Dublin Airport gives us a distinct advantage. There has been talk about Air India and various other airlines. Mr. Ó Ríordáin might not want to talk about specifics but there is massive potential there. Added to that is the small comment in Mr. Ó Ríordáin's statement on the second runway at Dublin Airport for which planning permission was granted through An Bord Pleanála in 2007. A number of conditions were set at the time in respect of the planning permission that the daa said would make it too restrictive. Those of us who live beside the airport would be very aware of the number of jobs that are created. I have supported the daa and the airport over that period. One thing that is missing from Mr. Ó Ríordáin's statement is information about how the daa, which has responsibility for Dublin and Cork, is interacting with the community and how to ensure that the daa is a good neighbour. People have genuine concerns about a second runway although they want to see the airport expand and more jobs being created. Mr. Ó Ríordáin has quoted a figure of between 3,000 and 5,000 new jobs to be created over a five-year period. That is very welcome. I know many people who work in the airport. Could Mr. Ó Ríordáin expand on what the next step will be? He has spoken about moving towards what is effectively the construction of the second runway. Is he happy that the daa can do that under the conditions laid down by An Bord Pleanála in 2007?

In respect of the good neighbour strategy, the daa has a good social responsibility fund. My concern is more to do with the day-to-day operation of it. Why has the daa remained silent on the greater Dublin drainage proposals for the largest sewage plant in the country to be established within two miles of the airport and very close to the flight path when it also knows that the daa is very active, as is Aer Rianta, in commenting on other planning applications in the area for agricultural buildings? That is strange. Was it because one of the proposed plants is a State contract and proposal? The plant will be four times the size of Croke Park and very close to the airport. I would have thought that the authority would have some comment or interest in that regard and I would welcome a comment on it.

Mr. Ó Ríordáin outlined the daa's perspective on the IASS pension scheme. Many of us here, including Senator Barrett, Deputy Flanagan and I, have commented on this. In fairness, Mr. Ó Ríordáin has mentioned that it is very emotive and has affected 15,000 members of the scheme, many of whom are former employees of the daa. The deferred members came in for particularly savage cuts as part of what is termed the expert panel's proposals.

I take issue with one comment made by Mr. Ó Ríordáin, that they were allowed to receive what was in effect a double pension. If those were the terms of the pension scheme they signed up to, that was not the problem of the scheme being underfunded.

I put it to Mr. Ó Ríordáin that the trustees, including the current trustees, badly managed the scheme. The deficit doubled in the past two years, from €360 million to more than €700 million when we knew this was coming down the track. I hope there is a resolution to it but I do not believe there will be. RASA, the retired aviation staff association, has stated it will take a legal case.

I do not want to spend more time on the pensions issue, as we are working on it, but let me put the following point to Mr. Ó Ríordáin and the trustees of Aer Lingus that when the plan is put to individual members, those members have to waive their rights to taking legal action or being part of any legal action in the future. While the staff are being offered a deal, one is saying to them that if they accept the deal they are waiving all future rights to being a party to a legal action against the trustees. That does not seem to be the best way of trying to gain agreement. The people for whom a resolution is most desirable is effectively the employer.

There are two general issues that are important to transport. It is good to see the increasing numbers using Dublin Airport. Why has there been no comment in the statement on the North Dublin Transport Study? The airport has a significant role in that plan. There is no mention of metro north in Mr. Ó Ríordáin's statement although there are advance plans for future passengers and development of the airport but there is no mention of a rail connection. Most people do not want a spur from Clongriffin to the airport. As chairman of the daa, Mr. Ó Ríordáin has referred to future development vis-à-vis,the second runway but fails to mention connectivity to the airport itself. He mentioned car parking and the expertise Dublin Airport Authority has in the operation of car parks but as the sixth busiest airport in transatlantic travel surely it would have been an absolute priority for the daa to ensure that metro north or something similar is delivered. I have been surprised, as a representative for the area, that the daa has not been more vocal on that issue in the North Dublin Transport Study. Fingal County Council has been very clear that it would support the metro. I have not heard that from the Dublin Airport Authority but perhaps Mr. Ó Ríordáin could say so here. It would be great were he to do so.

My last point is procurement, an area in which Mr. Ó Ríordáin gained expertise with Arthur Cox. He mentioned Aer Rianta International, ARI. For those who travel in and out of the airport all of the time that is very important. Will he comment on the position of the airport as a showcase for Irish retailers? The comment has been made and I would not completely disagree that when one looks at all the retailers and the concessions located in terminal 2 it is akin to flying into Manchester Airport, with its WHSmith's and so on. There are very few Irish owned companies, with a few notable exceptions. I believe we could showcase Irish businesses much better. Will Mr. Ó Ríordáin comment on the procurement and the tendering process for concessions at the airport? I do not believe it is as transparent as it could be. I receive many complaints from Irish indigenous businesses. When people come into our airport we can offer them the opportunity to see Irish businesses but the Irish owned and run shops are in a minority in both terminals 1 and 2. The daa is due to embark on major works on terminal 1 and I am aware that the tender for food has been awarded to an Irish company.

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