Mr. Ronan Gallagher:

I will address first the issue of profitability and the IAA. The Senator is correct to state the airport authority is a highly profitable organisation. I draw a distinction, of course, between its regulatory and commercial sides. On the regulatory side, work operates on a cost-recovery basis only. Importantly, there is no crossover between the commercial and regulatory sides. It is an important point of principle that there be no funding flow crossover. While both functions are under the IAA, they are very much separated on a corporate level. Commercial activities are regulated at European level and are highly profitable because of the extent of our en routecharges. The IAA retains a cash amount that it uses to invest in technology for traffic control. The State benefits from the payment of an annual shareholder dividend. On the regulatory side, the system operates on a cost-recovery basis. As a matter of public policy, we do not mix the regulatory and commercial sides.

On the issue of strengthening and ramping up, it is important to clarify that the provision is allowing the IAA to fund existing levels of security. It has a comprehensive programme in place. The point was on going further as our connectivity and the through-flow of passengers at airports increase. As the volume of goods exported from our economy increases, we need to have a much more secure funding regime. The IAA needs certainty as an organisation that it will be able to draw fees.

With regard to distribution, because it is the largest customer and will be subject to the highest level of inspection and oversight, DAA will pay the highest fees in relative terms. The details of that still have to be worked out. The IAA will do so in consultation with the industry and there will be transparency. It is not just to fall on the airports; it will fall on multinationals also. Exporting multinationals highly value it. It essentially allows them to package their goods on site of manufacture. They may be sent straight to the airport, put straight onto the aeroplane and flown straight out of the country. It really shortens the process. It is a relatively small price for those concerned to pay for the speed at which the supply chain operates for them. The arrangement is a factor in the IDA's ability to attract foreign direct investment.

There was a question on passengers queuing and so on. There are two high-level committees that the Department chairs. One is on aviation security and the other is on facilitation at the airports. The latter has representatives from each of the airports and airlines. That committee has a rolling programme of actions to try to ensure steps are taken at each airport by the airlines, immigration control, the Garda or whoever the relevant party is on the committee to work constantly towards increasing the flow of passengers from landside to airside and airside to landside.