Pat Gallagher (Donegal South West, Fianna Fail)

The State Airports Act 2004 provides the framework for the establishment of Shannon and Cork as independent airports. As part of the airport restructuring process the boards of Cork and Shannon airports are required to prepare business plans for eventual separation. Due to the fact they are interlinked, the production of the three airport business plans must be co-ordinated by the Dublin Airport Authority before being submitted to the Ministers for Transport and Finance for their approval under the State Airports Act 2004. They must be satisfied that the airports have the capacity to operate on a sound commercial basis before giving final approval to the business plans.

The Minister for Transport understands that the Dublin Airport Authority, DAA, has been advised by consultants on the appropriate financing proposal that would facilitate the statutory objective of the separation of Cork Airport from the DAA in a timely manner, consistent with the requirements of the State Airports Act 2004 and the Companies Acts. He is aware that the outcome of this analysis was that Cork Airport could sustain a certain level of debt while remaining a viable enterprise. He understands that the board of the Cork Airport Authority also engaged consultants to further examine the issue of the Cork debt.

The debt issue is crucial to the business planning process and must be addressed by the Cork Airport board and the DAA before any business plan is completed and submitted to the Ministers for Transport and the Marine and Finance. The Government's position is that the funding of the new terminal and other works at Cork Airport must take account not only of what is commercially and financially feasible for Cork Airport but also what is commercially and financially feasible for Dublin Airport.

If the Cork Airport Authority is to achieve autonomy in the foreseeable future, it must accept responsibility for a reasonable portion of the outstanding debt in return for the substantial assets to be transferred to it on separation. In deciding what level of debt is to be borne by Cork, it must be manifest to all concerned that it is a manageable debt burden that would not put at risk the airport's commercial future.

There remains a significant opportunity for Cork Airport to achieve the autonomy that the region needs and desires. On behalf of the Minister for Transport and the Marine I urge all concerned to seize the opportunity for autonomy by recognising that a manageable debt burden is essential in order to make Cork Airport's independence a reality.

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