Dan Boyle (Cork South Central, Green Party)
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I am grateful for the opportunity of raising this matter. The interim management arrangements for the country's international airports are proving every bit as fraught as many of us feared they would be on the proposal to bring an end to Aer Rianta's role as the holding company responsible for the management of Dublin, Cork and Shannon airports. In the interim situation Dublin Airport Authority has assumed the role of Aer Rianta and has become to all intents and purposes the new holding company. While Aer Rianta may have had many faults, at least it fulfilled its role in a relatively impartial manner in terms of the proportionate allocation of resources and passenger numbers between the three main airports. It tended to treat the development plans of each airport in a relatively impartial way.

Currently there is much uncertainty. There is disagreement at Government level regarding the progression of Dublin Airport. The Minister of State may find himself on a particular side of that argument. Those of us who represent constituencies where other international airports are located are sitting on the sidelines, looking askance at the lack of activity regarding the formation of truly independent airport authorities for the airports in our areas. We are very worried that decisions which must be faced are not being taken as a result.

It is of little matter to us in Cork whether Dublin has one, two or three terminals, or who will run those terminals. However, it is of great concern to us that this inter-party squabble within the Government is delaying the establishment of a formal holding company for Irish airports allowing for a decision on how Cork Airport will enter into independent life. The biggest factor will be the decision on how the debt for the new airport development will be treated. A debt of €160 million is very big for any new commercial entity, particularly when the decision was made by a national airport authority and was approved by the Government.

Many in the Cork region fear that as we now have a holding company that is the Dublin Airport Authority, the agenda is being set on behalf of the Dublin Airport Authority and decisions are being made or deferred by that authority including decisions on whether to allocate resources. We seem to have entered into a kind of administrative and commercial limbo in which the Government has no set timetable other than the production of business plans, which ultimately must be approved by the Dublin Airport Authority and submitted to Government under the new arrangements. While the Minister of State might have some concerns about Shannon Airport, my concerns relate to my role as a public representative for Cork South Central and my knowledge of Cork Airport. I suspect some factors assist Shannon Airport that have little to do with civil aviation.

In recent times Cork Airport has embraced its new commercial realities with great gusto by attracting new airlines, increasing passenger numbers and having a degree of certainty in terms of decisions about the provision of necessary new infrastructure. However, a doubt now exists because of uncertainty concerning airline and airport policy for the country. The Minister of State might be in a position to outline where this stands and perhaps he might be able to avert the prepared script he is about to read to the House. However, if this issue is not resolved quickly regardless of how many terminals Dublin has, a price will be paid in Cork and, I suspect, in the international airport that serves the constituency of the Minister of State.

Tim O'Malley (Limerick East, Progressive Democrats)
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I thank the Deputy for raising this matter on the Adjournment this evening. As he will be aware, the State Airports Act 2004 mandates the board of the Dublin Airport Authority to do everything necessary to give effect to the restructuring of the State airports. The Deputy will also be aware that section 5(2) of that Act specifies that the "appointed days" for Shannon and Cork Airports, that is the days on which airport assets are transferred to the new Shannon and Cork Airport Authorities, cannot be earlier than 30 April 2005. The Shannon Airport Authority and the Cork Airport Authority were incorporated in September last year and in line with the framework provided by the State Airports Act, these two new authorities will, in due course, own and operate their respective airports once sufficient distributable reserves are available to transfer the relevant assets.

Prior to the assets of Shannon Airport and Cork Airport being vested in their respective authorities, their boards are charged with preparing to assume full responsibility for the management and development of their airports. They are also empowered to undertake functions delegated to them, on an agreed basis, by the Dublin Airport Authority. Each of the airport authorities is also required to prepare a comprehensive business plan for its airport. The framework provided under the 2004 Act allows for a phased approach towards the transfer of airport assets, which specifies that Shannon Airport can be vested first, while Cork Airport will be vested once sufficient further distributable reserves have been built up within the Dublin Airport Authority.

Both the Minister for Transport and the Minister for Finance must be satisfied as to the state of operational and financial readiness of the Shannon Airport Authority and the Cork Airport Authority before the assets of the airports are vested in those authorities. The formulation of comprehensive business plans by the new boards will be a key aspect of achieving operational and financial readiness. The three airport authorities are preparing these business plans with the Dublin Airport Authority co-ordinating the process. It is envisaged that the business plans will be submitted by around mid-June for consideration by both Ministers.

In tandem with the ongoing work to give effect to the restructuring, work is proceeding on the major new development programme at Cork Airport, which will effectively deliver a new landside airport and represent the first major upgrading of facilities since the airport was built in the late 1950s. The project comprises a new terminal building and will be approximately 28,000 sq. m. in size. It will accommodate separate arrival and departure levels, space for 30 more check-in desks and new luggage carousels and up to 3,500 sq. m. in retailing and catering facilities. The development also involves the construction of new multi-storey and surface-level car parks, a new fire station, new internal road systems and the upgrading or replacement of all utility services such as water, gas, electricity and communications facilities. When completed, the new Cork Airport will have a passenger capacity of 3 million people with the facility to expand to 5 million when needed.

Similarly, Shannon Airport is a key infrastructural asset which contributes positively to meeting the air transport needs of its region, not just in respect of tourism but to service the ever growing demand from the business community, and to cater for the rapidly increasing air freight sector. Significant investment has been made in developing the airport and passenger facilities at Shannon in recent years to support the growth of Shannon. The new passenger terminal of Shannon Airport, which opened in 2000, has effectively doubled the airport's capacity providing it with the capability to handle 4.5 million passengers per annum. Passenger throughput last year was 2.4 million and the Shannon Airport Authority is planning for substantial growth in traffic over the coming years.

Both Shannon and Cork Airports are well positioned to cater for future growth in air services. The Minister for Transport is confident that the new boards of all three airport authorities will successfully meet the challenges ahead. Through more focused commercial operation, all three airports have and will continue to play a key role in stimulating and supporting regional and national economic activity to the benefit of their customers, both airlines and passengers, and of Irish tourism, trade and industry.

I thank the Deputy for the concern he showed about Shannon Airport.