Martin Cullen (Waterford, Fianna Fail)

I propose to take Questions Nos. 90 and 92 together.

As regards the future of Aer Lingus, I reject any claims that there has been a delay on the part of Government to progress the matter. It is important that any decisions we reach about the company's future are correct and take account of the nature of the sector, the company business model, the needs of the economy and the views of stakeholders. In that context, as the House is aware, the Cabinet sub-committee and the Government considered the future of Aer Lingus in December last. Arising from that consideration, it was decided, in line with the terms of Sustaining Progress, to initiate a process of consultation with ICTU to assist in reaching an understanding on the airline's future funding requirements. In that regard, I met representatives of ICTU on 16 December 2004. Since then there has been intensive engagement between Aer Lingus and ICTU's financial advisers on the issue and I expect the process to conclude very shortly. When the process with ICTU is completed, I will reflect on its outcome in consultation with ICTU prior to making a further submission to Government on the future of Aer Lingus.

On the second terminal issue, 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 is vitally important for developing our trade and tourism sectors, particularly having regard to our island status and peripheral location.

Passenger traffic through Dublin Airport is forecast to grow from last year's level of more than 17 million passengers to 30 million by approximately 2018. New infrastructure capacity and facilities, both airside and landside and including further terminal capacity, will clearly be needed to cater for this growth. The issue at this point is how best to provide that additional capacity to meet passenger growth.

The programme for Government includes a commitment to examine proposals for a new independent terminal at the airport and to progress such proposals if the evidence suggests that such a terminal will deliver significant benefits. A report in 2003 by a panel of experts chaired by Mr. Paddy Mullarkey assessed the independent terminal concept taking account of 13 "expressions of interest" submitted to my Department on the development of an independent, competing terminal at Dublin Airport.

I recognise that an early decision is desirable in respect of this matter so that, regardless of how it is provided, adequate terminal capacity will be in place at Dublin Airport when required to meet the growth in passenger traffic. I am in the process of finalising proposals which I will bring to Government shortly. My objective in putting proposals to Government will be to ensure the provision and operation of terminal capacity on an efficient and cost-effective basis.

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