Pat Breen (Clare, Fine Gael)

I congratulate the Minister of State at the Department of Transport, Deputy Gallagher, on his appointment. It is an important mission for him given that he is a west of Ireland man. He will definitely take into account the needs of the people of the west in approaching his portfolio. I wish him every success.

I thank the Ceann Comhairle for giving me the opportunity to speak on the Bill. As most speakers have noted, the Bill concerns the safety of passengers travelling by air, which is now of paramount importance as the business of aviation has changed in recent years. The arrival of low cost airlines has changed the aviation scene in that people travel more, to areas to which they never travelled before and at a younger age. It has been said about one of the low cost carriers in Ireland that people will go anywhere if the price is right. This is what has happened. We all remember the high prices of the past but they have been reduced owing to the arrival of low cost carriers and competition in the airline business, which has changed much since 11 September 2001.

While I do not watch much television, I recently watched some interesting National Geographic programmes on airline safety which showed what happens in the cockpit of an aeroplane and the few seconds that can make a difference to a flight. The programmes detailed several incidents over the years where safety was jeopardised owing to causes such as pilot error, control tower error and mechanical failure. Two to three years ago, when Deputy Brennan was Minister for Transport and the Irish Aviation Authority opened its new headquarters at Shannon Airport, I had an opportunity to tour the control centre and see how aeroplanes are tracked across the Atlantic Sea by the air traffic controllers. I commend these staff, who do a skilful job to ensure aeroplanes, not only Irish aeroplanes but all aeroplanes travelling across the Atlantic to Europe, arrive at their destination in safety and that all is in order as they cross the country. I was impressed by the modern equipment and the data display at Shannon Airport.

We have come a long way in regard to aircraft safety since airlines were first established in the 1930s and 1940s. As a Deputy representing Clare, I recently read a book on the area which showed that Shannon was an important area for aircraft crossing the Atlantic as most had to land there. A number of accidents occurred over the years because the aeroplanes were not as technically advanced as those of today. One such incident involved air traffic control. An aeroplane landed in the mud at Rineanna, as the airport was then known, but nobody knew it had crashed until the following morning although many people died. Much has changed since then. Fortunately, modern aircraft, whether Boeing or Airbus, are no longer involved in many accidents and are very safe.

The Bill gives effect to the 1960 international convention relating to co-operation for the safety of air navigation, the subsequent 1997 protocol and the agreed accession protocol in 2002. With my party, I support the Bill and hope it has a speedy passage through the Houses. However, the Minster might be aware that Fine Gael will table amendments which, while not affecting the purpose or character of the Bill, will tackle the issue of Eurocontrol fees, to which other speakers referred, so that the operator of an aircraft rather than the owner is liable for such fees. The situation which pertains in the Bill has been compared to a car rental owner being liable for speeding fines or parking fees incurred by the operator of such a car. In this regard, I draw the Minister's attention to the amendment tabled by my party colleague in the Seanad, Senator Paddy Burke, whose proposed subsection relating to this issue reads:

Nothing in this section shall create a liability on the owner of an aircraft unless that owner was also the operator of the aircraft at the time the charge was incurred, except where the owner is unable to establish that some other person was the operator at that time. The Minister should agree this is a sensible amendment and look at it carefully on Committee Stage. If it is adopted, it will make life easier for some leasing companies.

The issue of aviation is close to my heart. As a person living close to Shannon Airport I am used to aircraft flying over my house and over the years I have had an interest in aviation. Shannon has a significant history in aviation. The GPA group was succeeded by the AerFi group, part of the AerCap group, which is one of the world's largest aircraft leasing groups and is based in Shannon. This demonstrates how Shannon is steeped in aviation history.

This amendment and the concerns it raises are part of the broader issue of the powers this Bill confers on Eurocontrol, the European Organisation for the Safety of Air Navigation. Eurocontrol plays a vital role in the regulation of air traffic and in the smooth operation of such traffic under a single European sky. It is a mark of its professionalism that the operation of air traffic within Europe is largely taken for granted by the general public. However, such a deregulation of markets is an issue which may come again to the fore if the new open skies aviation agreement between the EU and the US, which the Minister hopes will come into effect by November, comes into effect. I doubt it will come to pass by November. I read recently that in the US there is considerable resistance to the new agreement. The deal is contingent on the US Administration easing limits on foreign investment in US airlines so foreign investors can have majority control. There are fears of job losses and aircraft fleet closures throughout the US, fears that have found an echo in Shannon. We know many US fleets are in deep financial trouble and we have already lost great pioneers like Pan Am, TWA and others. Many US airlines are currently in Chapter 11, in deep financial trouble and dependent on the US Government bailing them out, particularly since 11 September 2001.

I take this opportunity to request once again that in the light of these fears in the US the Minister should reconsider his decision on the open skies policy. I ask the Minister of State, Deputy Gallagher, to convey to the Minister the importance of an economic impact study in preparation for open skies for the Shannon region. It would not cost too much to carry out this study. While we are ready for the challenge, it is important to carry out an impact study to identify the challenges and how we can prepare for them.

We in the mid-west find ourselves in an embarrassing situation where the fears being expressed in the US are not just for jobs and airlines, but also extend to the effect open skies would have on the west of Ireland. There is a likelihood that a Bill could be introduced into the US Congress requiring that the US Secretary of State review the effects the introduction of open skies would have on the west of Ireland, thanks to the interest of Congressman Chris Smith who has taken up this issue in Washington. He is active in this regard and is getting great support from across Republican and party lines on the matter of the new EU open skies agreement and the bilateral arrangement. Unless we are prepared, the new agreement will have a detrimental effect on tourism in the west of Ireland if it comes in as planned. This is the reason an impact study is so important.

Experience in Europe has shown that where open skies have come into place, capital cities are the preferred choice for airlines, which do not want to land at other smaller airports. I urge the Government to reconsider the open skies arrangement, particularly with regard to US carriers. Shannon will have plenty of business during the summer. However, much industry in the area depends on direct services from the US as a back up for cargo and spare parts etc. Dell and many other American companies along the western shoreline depend on the direct service to Shannon. I urge the Minister to reconsider an impact study on what will happen under an open skies policy. The people in the mid-west and the west are not afraid of it, but they must be prepared for it. The impact study would cost little in comparison to the wastage of taxpayers' funds on electronic voting and PPARS. The cost would be insignificant.

I wish to refer to the conclusions of a study carried out by Alan Dukes and Frederik Sorensen. This study deals with the issue of public service obligations, PSOs, as related to open skies. The report suggests that certain routes between Shannon and the United States should have PSOs and we should consider this in the light of an open skies situation. The current situation with regard to PSOs only applies to domestic routes.

Unfortunately, Shannon does not have a PSO subsidy because it is an international airport, unlike airports in Donegal and Knock. The current situation in the mid-west is that we do not have a daily direct return service to Dublin. Such a service would be a huge factor in attracting business to the area. We do not have an early morning flight to connect with early morning continental flights and are dependent totally on US flights coming in to pick up passengers in Shannon. Then, after 1 p.m or 2 p.m. it is impossible to get a flight from Dublin to Shannon. I urge the Minister of State to look at this issue in the interest of the region.

The report by Dukes and Sorensen was commissioned by Ireland's air transport users council and its conclusions are significant. The credentials of the investigators are second to none. The Government should not ignore the report.

The issue of public service obligation levies brings us to the second outstanding issue for Shannon Airport. Previous speakers referred to the debt of the Dublin Airport Authority, Shannon and Cork. Deputy Dennehy referred to the issue last week and Deputy Martin Brady referred to it earlier. I was happy to hear of his sympathy for Shannon and Cork Airports. What worries me in this regard are comments made in the Seanad last week by my Clare colleague, Deputy Killeen, who took the Adjournment matter on behalf of the Minister for Transport, and answered a question put by Senator Minihan on the debts of Cork Airport.

Shannon Airport has significant concerns in this regard. We know the State Airports Bill 2004 set out the parameters for the break up of Aer Rianta. At the time the Minister stated that from day one both Shannon and Cork airports would be debt free. This commitment was given again by the Minister of the time, Deputy Brennan, in 2003 when he announced the Shannon Airport Authority. He said Shannon would be free from day one and the debt of €70 million would be removed. In reply to several parliamentary questions since then, the same response has been stated, namely that Shannon and Cork Airport Authorities would both commence free of the legacy of any debt, a significant advantage for them. Sadly matters in this regard have turned sour.

I have deep concerns with regard to the reply given by Deputy Killeen in the Seanad last week. He stated there was a problem with company law, it was a complex matter and that Dublin Airport would make transfers only when it had sufficient reserves available to match the value of the assets being transferred. Dublin Airport has much money and we all realise it is a very important, if overcrowded, airport. Much work needs to be carried out on its terminal buildings and runways. That puts a new spin on the issue.

The PCW report carried out some time ago, but which was never published, stated that Shannon Airport would have to spend much money on capital infrastructure, be it land-side or air-side facilities. I believe the sum is approximately €35 million. If the €17 million in debt is added to the €35 million that must be spent between now and 2008, it will be a significant burden. I am concerned about this. I would like the Minister of State to go back to his Minister and tell him that the two airports have to start as debt-free concerns.

A former Minister for Transport, Deputy Brennan, once stated he had a hunch that a matter would work out. Does the Government have a hunch that this matter will work out as well? What is happening with the two airports is very wrong. There are significant challenges, particularly in the case of Shannon Airport and the open skies agreement, and yet we still meet the debt obstacle. It is worrying.

We were promised that Aer Rianta International would be left with Shannon Airport as an asset. Assets are very important for the airport, but we do not know if this will happen. Aer Rianta International is a very successful company, making profits in the region of €13 million a year. The same can be said of the decision last week of the Government to sell the Great Southern Hotels chain. The Great Southern in Shannon was one of the most successful hotels in the chain and had a close relationship with the airport. If the hotel is sold, what will a new owner do with these ties to the airport? These are issues I worry about regarding the future of Shannon Airport. We must consider them seriously. We do not want Shannon Airport to be burdened with a large debt. Cork Airport has the same right.

These are the pertinent issues. I am concerned about them and I hope the Minister of State, in representing the west of the country, will consider these matters. I hope he will take into account the future of Shannon Airport. The Bill will be supported by various other parties. I could discuss other matters, and others will consider military traffic through the airport. On that issue, we should wait to see what the European Parliament and the Council of Europe decide. We must accept for the moment the assurances of the US Secretary of State, Ms Rice, and the American ambassador, who spoke recently in Trinity College. I will not dwell on that topic.

I hope the Minister of State will take my views on board. Fine Gael welcomes the Bill, particularly with regard to safety, which has been much discussed recently.

See this speech in context