Noel Dempsey (Meath West, Fianna Fail)

I have asked Mr. Peter Cassells to consider the disagreement between the Dublin Airport Authority and the Cork Airport Authority on the portion of the overall Cork Airport debt to be borne by the CAA on its separation from the DAA. Mr. Cassells's brief is to establish whether it is possible for the two boards to resolve their long-standing difference on this core issue. I have asked him to report to me by 7 March on this matter.

My Department is currently considering the business plans prepared by the three airports in the context of their separation into independent entities. I hope to make progress on this in the near future and in this regard Mr. Cassells's report will be very important. In the circumstances, I do not propose to comment at this point on the question of the allocation of debt on airport separation.

The terms of reference for the engagement of Mr. Cassells are as follows: to facilitate a dialogue between DAA and CAA with a view to finalising details relating to the financial consideration to be paid by the CAA to the DAA in respect of the transfer of assets to the Cork Airport Authority on separation, under the State Airports Act 2004, taking account of the following — the cause of the disagreement between the two boards; the need to ensure the financial sustainability of all three State airports under the State Airports Act 2004; Cork Airport's business plan; the DAA's commentary on that business plan and any associated consultants' reports considered relevant; and the need for a speedy resolution of this dispute so that the two boards are in a position to finalise business plans for each airport on a financially sustainable basis under the State Airports Act 2004; and to report to the Minister by Friday, 7 March 2008.

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