Martin Cullen (Waterford, Fianna Fail)

I thank the Deputies for raising this matter. To be helpful, if they have not done so, I invite them to read the Second Stage speech of the then Minister during the State Airports Act when this issue was set out in great detail. It would be helpful if they did so because nothing has changed since the details were set out in that speech.

The major new airport development project which is currently being completed will effectively deliver a new landside airport to Cork and represent the first major upgrading of all facilities since the airport was built in the late 1950s. The project comprises a new terminal building development and also involves the construction of new multi-storey and surface level car parks, a new fire station, new internal road systems and the upgrading or replacement of all utility services — water, gas, electricity etc.

When completed, the new Cork Airport will have a passenger capacity of 3 million people with the facility to expand to 5 million, when needed. It is important the debate about Cork Airport's future debt should not obscure this major development for the airport. Such facilities will greatly benefit the airport's users but will have to be funded. Cork Airport's future as an independent airport has to take account of a realistic assessment of what is commercially feasible, including the capacity of the airport to contribute to its capital investment programme.

In recognition of these commercial realities, the State Airports Act 2004 provides a framework for an orderly approach to the distribution of the assets of Shannon and Cork airports in conformity with the provisions of the Companies Acts. The Act also addresses business planning issues.

The boards of Cork and Shannon airports are now charged with making preparations to assume responsibility for the ownership and development of the airports. They are also empowered to undertake certain management and operational functions, on an agreed basis with the Dublin Airport Authority, during the interim period.

Under the Act, before any assets can transfer to either the Shannon or Cork airport authorities, the Ministers for Transport and Finance will have to be satisfied as to the financial and operational readiness of the airport authorities. Accordingly, each airport authority is required to prepare a comprehensive business plan and obtain the Ministers' approval for these plans before any assets can be transferred. Such plans would address the funding of capital investment and feed into decisions on determining the mechanisms for allocating airport assets among the three airports.

Cork Airport will benefit greatly from the major investment currently being made in the development of its facilities. The business planning process will provide a basis for determining the most feasible options for carrying through the restructuring. The ability of both Shannon and Cork airports to operate on a fully commercial basis will be fully assessed as part of this process and will be factored into the decisions made.

To clarify a point made by Deputy Allen, I have not appointed anybody. It is not my function to do so. I understand that both the Dublin Airport Authority and Cork Airport have agreed recently to retain an independent consultant to assist them in the finalisation of the Cork Airport business plan. I await the outcome of this work because of its importance in facilitating the development of a dynamic, independent and financially sustainable Cork Airport. The Government objective of airport restructuring must be achieved in a manner which underpins the financial sustainability of all three State airports, which fundamentally includes Cork Airport.

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