Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to raise this issue. The debate is timely in view of the fact that the three airport authorities were before the Joint Committee on Transport last week to discuss progress regarding the State Airports Act 2004, the break-up of Aer Rianta and the distribution of capital costs of developments to the various airports.

It is important to note that Cork Airport has been very successful to date. There has been a great increase in the throughput of passengers recently. It has now reached 2.25 million passengers per year, and projected growth puts that at 3 million. It is therefore important that we recognise that Cork Airport, first and foremost, has marketed itself very effectively. It is a strategic part of the region and its development regarding employment and foreign investment. When this issue was first debated, there was a strong objection from Aer Rianta to Cork Airport securing a new terminal, and many local Deputies fought with it to secure funding. The previous Minister for Transport, Deputy Brennan, strongly supported that project. The assumption was that, at the final stages, Cork Airport would get its new terminal but that the capital costs of providing it would not be passed on to it.

The Minister of State taking the debate, Deputy Callely, would have been very aware of that, having also been a great supporter of Cork Airport over the years. I know he will take a personal interest in this. Given that he is now in the Department of Transport, I hope he will understand the concerns and anxieties of people in Cork, particularly staff and management, who have gone to great efforts in recent years.

Cork Airport has been a very profitable part of Aer Rianta. When other developments were going ahead in Aer Rianta, Cork Airport's finances funded some of them. With the shoe on the other foot, it is time it acknowledged that Cork Airport has not received fair investment over the year, and now that we have achieved the new terminal, we should not be burdened with an excessive debt that could kill its commercial future. When the previous Minister appointed the board members to Cork Airport Authority, I genuinely believe that they were also under the assumption that the capital costs would not be borne by the airport in the event of a break-up. I know there is company law and that the State Airport Act requires that the transfer of assets also be taken into account. However, whatever measures are in Cork Airport's business plans, they should be adjudicated on the original Government policy assumption that it would be free of the debt for the development of the new terminal. I highlight that because I have genuine concerns about the thrust of a recent debate at a meeting of the Joint Committee on Transport, at which representatives of the Dublin, Shannon and Cork airport authorities were present. Some people insisted that Cork Airport should introduce business plans to fund the capital cost of the development of the terminal. That would be unfair as it would represent a reversal of previous Government policy when it was decided to sanction the development of the new terminal.

Most people in Cork have a strong attachment to the airport. They realise that it has a major impact on the financial vibrancy of the Cork region. Figures are available to indicate that the airport is growing rapidly, mainly as a result of strong and aggressive marketing of the airport by its management and the commitment of its staff. The airport is used by a large swathe of the population outside Cork. Its catchment area will increase as the roads infrastructure to the north of Cork city improves. I am concerned that officials from other airports might try to saddle Cork Airport with as much debt as possible because they see it as a threat. As a public representative of the Cork area, I cannot accept that.

I am aware of the Minister of State's strong attachment to Cork and to the airport in particular. I am sure he will listen to the views of public representatives from Cork, the chambers of commerce of the Cork region and the members of the board of the Cork Airport Authority. There is deep concern and anxiety in Cork about this matter. If we are serious about the break-up of Aer Rianta, we need to tackle the many obstacles which exist. The Government needs to ensure that it complies with company law and that the three airports are solvent. Issues relating to the debt ratio and capital costs also need to be assessed. The commitments which were made should be honoured when business plans are submitted to the Cabinet for its approval.

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