Jerry Buttimer (Cork South Central, Fine Gael) | Oireachtas source

I welcome the opportunity to speak about the State Airports (Shannon Group) Bill 2014 which also has an impact on airports other than Shannon Airport. It has an impact on all three State airports and their workers, in particular, Cork Airport. I will concentrate on the pension provisions for workers, as mentioned by Deputy Ruth Coppinger, the impact of the changes in the ownership structures of the State airports and the future and potential of Cork Airport.

The issue of pensions has been raised by many people working at Cork Airport who are concerned about the pensions scheme. In March it was reported that the scheme had a deficit of €769 million and everyone acknowledges that this is not a sustainable position. It is a source of grave concern for those who worked for years thinking they had a secure pension to which to look forward on retirement that perhaps it might be not paid now.

The Minister has informed us that the expert panel was formed to investigate how a financial resolution of the industrial relations issue relating to the pensions scheme could be secured. The expert panel has consulted various parties, including representatives of employees, and made recommendations that need to be considered in detail. Just because an expert panel makes a recommendation does not mean that the concerns of workers have been adequately addressed, nor does it mean that the workers have been reassured about the future of their pensions. Everyone accepts that the difficulties with the pensions scheme pose serious challenges. A solution must balance the interests of employees, pensioners, deferred members and employers. It is vital that certainty is provided for those who rely on the pensions scheme to provide for future income. I ask the Minister to ensure he remain vigilant on this issue in order that, after the Bill is passed by the House, there will be continued dialogue between all parties.

One of the main parts of the Bill, Part 5, deals with the restructuring of the various airport companies. Section 30 deals with Cork Airport Authority plc. It provides for the dissolution of the Cork Airport Authority and gives the power to reincorporate the authority at a later date, which I welcome.. This move reflects the reality in which Cork Airport has found itself since the passsage of the State Airports Act 2004. How we remember the previous Government's proud boast in 2004 that Cork Airport would be debt free and that it was envisaged that it would be separated from the other State airports. For a variety of reasons, that has not happened and, at this juncture, is not immediately realisable. Since 2004 the Cork Airport Authority has effectively been a shelf company. Although it had a board of sorts, it had little autonomy and was operating under the control of another group. I commend the Minister for his initiative on this point. Unlike the previous Government, he has been more proactive with regard to the airport. There was a lot of rhetoric from the previous Government about the provision of a new terminal building, but they were false promises and the false rhetoric has now come home to roost. Dissolving the Cork Airport Authority, in the context of the reality of public policy since 2004, makes sense. There is no point in having a company in place for the sake of it. It is in the interests of the airport and the Cork region that the management and operational structures in place facilitate the day-to-day activities of the airport and its ability to grow. There is no point in having a company in place that is the relic of an outdated policy long left behind. It is welcome that the Minister is allowing for the Cork Airport Authority to be re-established at a later date under section 31. When the time comes, it may be financially feasible for Cork Airport to be a separate entity, when it has the ability to operate on its own. The Cork Airport Authority could then be re-established.

When the Minister took office, he conducted a comprehensive review of aviation policy and restructured the State airports. This decision effectively spun Shannon Airport from the airport group, making it an independent airport that could compete against the other two State airports. The decision was taken in considering the overall detailed picture, both historic and future, facing all three airports. It recognised the business opportunities, the opportunities for growth at the various airports, as well as the financial challenges at the time. The result has been the creation of an independent Shannon Airport and continuing to leave Cork Airport operating under the umbrella of the DAA. We now have a situation where the second busiest airport in the country, Cork Airport, has to compete against Shannon Airport, while not having the same freedom to take commercial decisions that could enhance its business and business case.

I accept the reasons for not making Cork Airport independent, the two most significant being that the airport's operating costs exceed its revenue and that the level of debt arising from the new terminal building puts it in a difficult position. In the short term, in order that the issue of debt can be addressed and that the pensions issue can be resolved, this is the correct decision. However it was made, the climate in which Cork Airport operates is difficult. This can be seen by the number of new routes opened up from Shannon Airport at a time when a similar number of new routes have not been opened up from Cork Airport. Despite Cork Airport being in proximity to a much larger population, the politics of the decision within the aviation sector means that one prominent airline has been slow to consider Cork Airport for the introduction of new routes. This is at a time when Cork has the roads infrastructure that allows people to travel faster to it from Portlaoise. From areas in Munster, it is perhaps faster to travel to Cork Airport than to Dublin Airport.

I have outlined some of the challenges facing Cork Airport. Unfortunately, they can be seen in the continued decline in passenger numbers. Last year the airport welcomed 2.3 million passengers through it, but this represented a decline of 3.5% on the figure for the previous 12 months, a trend that has continued for too many years.

I welcome the appointment of Niall McCarthy as CEO, who has shown himself to be a breath of fresh air in Cork. Despite the fact he may have difficulties with his staff in bringing about change, I hope that as CEO of Cork Airport, he can bring about a new dawn for the airport, because staff and management have worked hard together to return passenger numbers to growth and are actively engaged with airlines to bring this about. I commend them for this. While the airport faces challenges, a number of route options are available. Last year, 16 airlines served 54 separate routes and the five scheduled airlines, Aer Lingus, Aer Lingus regional, Ryanair, Jet2.com and Wizz Air, offered a total of 44 scheduled destinations from Cork last year. In the past eight years, only once were there more scheduled routes available from Cork. That was in 2008.

I also want to highlight the excellent customer service available at Cork Airport. Last year the airport was ranked as the world's best regional airport for customer service by both business and leisure travellers. The airport came first for overall customer satisfaction in the global airport service quality, ASQ, regional survey of passengers, carried out on behalf of Airports Council International, ACI. This is an achievement that needs to be broadcast widely and it was only possible because of the efforts of management and staff at Cork Airport. For this they must be congratulated. When passengers use Cork Airport, they have a great experience, but for many the difficulties begin before they ever get to the airport. The decision not to use Cork Airport is often down to a lack of route options.

The lack of options can be seen when we look at a map of Europe. There are no direct flights to Madrid or northern Spain, Rome or southern Italy, Germany, apart from Munich, Denmark, Scandinavia, Austria, Switzerland and the majority of eastern European countries. The fact that huge swathes of Europe are not directly accessible from our second city and second busiest airport is a major concern. However, of even more concern is the fact that there is now no direct air link between Cork and Dublin. I still do not buy the argument given by those involved in the industry in regard to the lack of that service.

We are aware of the challenges for Cork Airport, but we must set out a positive way forward. I welcome the Minister's decision to establish a new high level stakeholder body, the Cork Airport development council, which will provide a forum for senior stakeholders from a range of sectoral and geographic backgrounds who have an interest in the development of Cork Airport to engage with management at the airport and help contribute to traffic and route growth. This initiative has the support of the business community in Cork; it was part of the publication - A Ten Year Masterplan for Cork Airport - published by Cork Chamber last January. I believe the plan now needs to be centred on development and hope the development council remit will include the creation of a long-term plan to develop Cork Airport.

The Cork Airport development council established by the Minister has representatives from organisations such as Fáilte Ireland, the Cork Chamber of Commerce and even EMC, which among others will ensure that local views will contribute to the future development of the airport in order that it meets the tourism and business needs of the region. This will ultimately benefit the economy of the entire Cork region and the wider national economy. The first item this group should focus on is on expanding the air connectivity available from Cork In looking at this, a priority must be developing air links with key international hubs, with flights at times that suit businesses and business people. In tandem with this, we must protect and develop key routes such as Heathrow, Gatwick, Amsterdam, Paris, Frankfurt, Munich and Rome, but perhaps more important an air link to Dublin. Despite the fact we have a very good road link, an air transport link is important.

Having this range of flight options will ensure that passengers using Cork Airport, for both business and tourism, can get direct flights to key international hubs, enabling them to link to destinations across the globe. This is why Heathrow is so important in the context of Cork. Focusing on these routes will enable Cork businesses to grow and expand internationally. This will benefit the international schools in UCC and CIT and the many leading international businesses in the pharmaceutical and IT areas and the tourism sector.

One challenge we must consider in the context of Cork Airport is that of transatlantic flights. These would be a huge addition and are not just a pie in the sky aspiration for Cork, if they can be delivered. When I was on the regional authority, we met with representatives from Nova Scotia. Having links with the United States and Canada should be a medium-term goal for the airport, and given the population base of the region and the large number of multinational businesses located in Cork, there is a demand for these services.

Regrettably, the challenges facing Cork airport are compounded by the high level of debt that the airport carries. An article in the Irish Examinerby Joe Gill on 9 April summed up the situation very well . He wrote: "In the same way that puppies are not just for Christmas, expensive airport terminals are in place for decades and carry with them residual borrowings." We cannot escape this, but that said, all parties involved in Cork Airport must continue to explore ways to reduce the debt levels it is carrying. Reducing this burden will allow the airport to reduce prices and attract airlines. Unless the debt is reduced, the ability of the airport to reach its full potential will not be delivered.

The reason Cork Airport was not made an independent airport was because the debt levels it would have to carry would not make it a viable commercial entity. That is acceptable and fair for those of us who are passionate about Cork Airport. However, the airport should not be expected to operate under the restricted umbrella of the DAA and still be subject to the same debt levels as if it was an independent airport carrying the full debt. Across the country businesses are dealing with the consequences of over-borrowing, borrowings made in a market that no longer exists and borrowings that must be repaid at a time when incomes have fallen. In this regard Cork Airport is dealing with the same problems that continue to affect so many parts of the economy.

I hope the development council will be the catalyst that will enable Cork Airport to grow in order that it can reach its full potential. We have a fantastic and committed staff there. We have seen that the staff members serving on the board of directors are passionate about the airport. They represented their members well, but saw the bigger picture of Cork Airport. I hope the input of people from outside of the DAA group will facilitate a detailed consideration of how to restructure the debt at Cork Airport in order that it does not continue to be a heavy weight preventing the airport attaining its obvious potential.

I have focused on Cork in my presentation. As someone from the second city and as a person passionate about the airport, I see this is an issue that must be allowed to be debated in this Chamber. I hope we will have a wider debate on the use of and growth of Cork Airport and I hope the aviation sector will also have an honest debate on Cork Airport. It rankles with people in Cork and the area around Cork Airport that airlines come to other airports and offer a wide range of routes. Our objective is to grow and develop Cork Airport ino rder that it can offer choice to the business community, the tourism sector and passengers who want to come in and out through Cork Airport.

I will finish by referring to section 44. I commend the Minister on the issue of dazzling in the context of the offence created in the Bill. It is important we protect our pilots and air traffic controllers. It is a concern that there have been incidents regarding the use of lasers and laser beams at some of our airports. I was stunned to hear from people in the airline industry that there has been a wide range of reports of this offence occurring. It is important to legislate for this and I commend the Minister for it.

This may well be the Minister's last Bill before the reshuffle. If it is and if he is moved, I commend him for the work he has done in this area.

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