Martin Cullen (Waterford, Fianna Fail)

The decision on investment will provide the necessary funds for Aer Lingus. This must be accompanied by continued progress within the company towards a more competitive cost base. This is a matter the company and staff will have to address over the coming months and will be crucial to the preparation of the viable future growth plan they have been mandated to complete as part of the Government decision. The Minister for Finance and I will move quickly to appoint advisers to advise on the size, type and timing of the Aer Lingus sale transaction. We will work closely with the board and management on all the preparatory and other arrangements to give effect to this decision.

I assure the House that in progressing the decision and charting the road map, I will continue to engage with the unions and the ESOT in a spirit of partnership. I have already written to ICTU and the ESOT and I expect that meetings will be arranged shortly to agree the consultation process.

During the debate Deputies mentioned the status of the Heathrow slots. I make it absolutely clear that I accept that Heathrow is important for Ireland. Apart from retaining the 25% stake in Aer Lingus, we must within the regulatory framework, ensure adequate ongoing access to Heathrow for Irish consumers. As I have advised the House on previous occasions, Aer Lingus does not own these slots, they do not appear on the company balance sheet and an EU regulatory framework is currently under review. However, access to Heathrow is vital and I will keep this matter under careful review as we move forward on the decision.

On the Government's decision on terminal capacity, I acknowledge the strategic importance of Dublin airport. It is and will remain pivotal to the continued success of the economy. New infrastructure capacity and facilities, both airside and landside, will be needed to cater for future growth, including further terminal and runway capacity. The Government's decision last week to approve the building of a second terminal by the Dublin Airport Authority will cater for expansion of the airport to handle up to 30 million passengers per annum. The Government agreed a triple safeguard process to ensure that terminal two, which will be operational in 2009, is delivered in an efficient and cost effective manner. These include consultations by the DAA with its airline customers to ensure the design of the new terminal takes account of their requirements, verification of the final specifications and costings by independent aviation experts and regulation by the Commission for Aviation Regulation. The DAA will also provide new pier capacity at Dublin airport by 2007. This will ensure the delivery of more contact stands for aircraft, which are especially important to the low cost carriers for whom fast turnaround times are an integral part of their business model. These decisions will ensure that essential capacity and facilities will be delivered on an efficient and cost effective basis at Dublin airport when we need to cater for forecast growth in passenger traffic.

The importance of the other two State airports at Shannon and Cork and the contribution of the six smaller airports to regional development were also raised in the debate over the past two days. The airport authorities at Dublin, Shannon and Cork are currently preparing their business plans for submission to the Minister for Finance and me. The evaluation and outcome of this business planning process will provide greater clarity with regard to the most appropriate next steps to give effect to the restructuring and the establishment of Shannon and Cork as autonomous airport authorities. The Government fully recognises the important role of the smaller regional airports and we will soon announce the PSO air routes.

The decision taken was the right decision that allows Aer Lingus to compete on an equal footing. At present, it has one arm tied behind its back.

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