Timmy Dooley (Clare, Fianna Fail)

I thank the Ceann Comhairle for selecting this important issue and the Minister for being present to discuss it. I welcome the Minister's publication of the Booz & Company report, which is very comprehensive. The company consulted widely and brought considerable experience to the report while reviewing international models for ownership and management of airports, which is helpful.

The Minister is well aware that the report has identified five options and evaluated each in order to distil them into two broadly based recommendations identified in the report. The first is termed a restructuring of the Dublin Airport Authority, DAA, with each airport given status as an independent subsidiary within an overall airport grouping, with each airport having an independent board with the capacity to set strategic direction, appoint management teams and develop business plans. I would favour this and recommended it on behalf of my party in our submission to Booz & Company.

The second recommendation indicates that Shannon Airport could be separated from the other two airports, with a local concession established involving local authorities in Clare and Limerick and a regional development agency in the guise of Shannon Development. It is clearly indicated that the capacity of Shannon Airport to survive either on its own or in a new structure would be less than viable if there were fewer than 5 million passengers. There is mention of the airport being in real jeopardy in such a case and we are all concerned about that.

Either of the two options recognise that Shannon has a significant problem and the difficulty is in a separated environment where it is cut adrift from an overall airport umbrella or the DAA. In such a case it would be left with a cash requirement of approximately €8 million per year. Involving the local authorities and Shannon Development or expecting that the land bank can be monetised in the current climate is farcical. I accept the Minister has not made a determination on it, but I want to use the opportunity to clearly state the future viability of Shannon Airport would be compromised greatly if local authorities or Shannon Development were expected to provide additional revenues to meet the ongoing running costs of an airport which is the default location for transatlantic emergencies and required to be open 24 hours a day, seven days a week. This service cannot be provided without a subvention, unless the number of passengers is 5 million. The report clearly indicates this is not possible or feasible, even in the medium term.

The report calls on the Government to clarify its overall aviation policy, which is important. I expect in any review or restatement of the Government's policy on aviation regional development to be rightly identified as an important component.

The report speaks about whether the Government needs to restate its position on competition. I am not sure competition between the three State airports is such a big issue because they serve very different markets.

The report mentions the benefits in having a less crowded airport landscape which may require the Minister to move towards reducing their number. It also mentions the issues of debt and pensions which need to be addressed.

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