Pat Gallagher (Donegal South West, Fianna Fail)

In addition, Eurocontrol has indicated that member states that have civil law systems have similar powers to seize aircraft for non-payment of debts. All of these procedures, whether under common or civil law, have the same effect of freezing the asset in question and making it available as a security for the payment of a debt.

While I gave further consideration over the past ten days to the points raised by Deputies Mitchell and Shortall, I regret that I am unable to accept the amendments proposed and I will repeat a number of reasons for that. First, there is a safeguard for an owner in the selling of the aircraft for the purposes of meeting a debt to Eurocontrol in respect of liability of an operator. To sell an aircraft an application must be made to the High Court and the registered owner would have to be on notice of any proposed sale.

Second, it is not a procedure that has been resorted to lightly in the past. In fact there has been no instance in the past, from 1988 to date, where an aircraft has been detained and subsequently sold due to non-payment of a debt to Eurocontrol. I would make clear, however, that the existence of these powers is regarded as having a significant deterrent effect.

Third, the aircraft leasing companies can afford themselves financial protection by building provisions into their lease agreements with these aircraft operators. This facility is not available to the air traffic control provider when doing business with airlines. In practice an aircraft lessor is usually in a better position than an airport authority or air traffic control provider to monitor the financial status of the operator as it can specify any necessary requirements under the aircraft lease. Furthermore, any amendment to the legislation that would give rise to different legal treatment of leased versus owned aircraft would be inappropriate.

The provisions apply equally to debts incurred by airline companies for Eurocontrol charges or for airport charges. Any change in the legislative provisions relating to Eurocontrol charges would give rise to different treatment of air navigation and airport charges. This would lead to arbitrary discrimination between service providers to airlines and would not be appropriate.

Following consideration of all the views expressed by Members of the House, and by the Irish Aviation Authority, the Attorney General's office and the Dublin Airport Authority, I have decided not to make any changes to the existing powers at this point. We are not making any changes in legislation. This would not make it any more unattractive for aircraft to land in Ireland. It did not have that effect from 1988 to date and I do not see it having that effect in the future. I have looked at this seriously and taken on board all of the recommendations made to me. Regrettably, I am unable to accept the amendments, which I believe were tabled in good faith.

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