Deirdre Clune (Cork South Central, Fine Gael)
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I wish to share time with Deputy Creed. The issue I raise arises from the decision by a former Minister for Transport, Deputy Seamus Brennan, to break up Aer Rianta into three airport authorities, namely, Dublin, Cork and Shannon. At the time, the then Minister stated on a visit to Cork:

When I establish the independent Shannon and Cork authorities on a statutory basis they will both commence business free of debt. The existing debts associated with both airports, including the debt associated with the major new investment programme at Cork will not be assigned to the new companies but will remain with Dublin Airport.

At the time the Minister also stated, "Given the strong growth at Dublin, the overall scale of operations there and the reality of the present situation, I do not feel that absorbing the debts for Shannon and Cork would place an unreasonable additional burden on Dublin."

It is a different situation today. There has been no movement on the proposed separation of the three airport authorities, no move on the independence of Cork Airport and obfuscation and denial by the Government on the debt issue. Despite continual pressing from Members of this House, local public representatives, the chamber of commerce in Cork and the Cork Airport Authority, the Government still refuses to commit to the debt free status that was originally promised. The Government has been hiding behind consultants' reports instigated by the Dublin Airport Authority, the Cork Airport Authority and the Government itself but there has been no resolution of the issue.

This was everybody's favourite issue before the election, whether one was in Opposition, a member of the governing parties or the leader of the Green Party. As reported in the media, the former leader of the Green Party, Deputy Trevor Sargent, signed a pledge in Cork stating he would commit to ensuring that Cork Airport would be independent and debt free. We were told the programme for Government would contain a commitment to ensuring Cork Airport's debt free independent status but there is no sign of it. The Minister of State at the Department of Agriculture and Food, Deputy Sargent, should explain to the House exactly where he stands on this issue. He should explain how he was able to sign a pledge as leader of the party when in Opposition but now, when he has led his party into Government and seconded the nomination for Taoiseach last week, we see no sign of that commitment in the programme for Government.

This is a serious matter. The airport has been open for 12 months but there has been no resolution to the debt issue. Nobody knows who is paying for the airport because it has not been made clear. Morale is very low at the airport. The Cork Airport Authority refuses to accept anything other than debt free status. We need a resolution of this issue, which is very important for Cork Airport but even more important for the Cork region. Without a viable airport, the region has no future. I look forward to the Minister's response on the matter.

Michael Creed (Cork North West, Fine Gael)
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I congratulate the Leas-Cheann Comhairle on his appointment and wish him well. I thank Deputy Deirdre Clune for sharing time with me.

If anything reflects the Pale mentality of the current Government, it is the decision on Cork Airport. A commitment by Government announced by the previous Minister was alluded to by Deputy Clune. It calls into question the value of a Government statement or a Government collective decision announced by an individual Minister, and the value of the programme for Government entered into by the PDs, the Green Party and Fianna Fáil, of which we have been advised, if commitments given are not honoured.

The boardroom at Cork Airport is in turmoil and the main losers will be the travelling public who use the airport, which is a brand new facility and a tribute to everybody who contributed to its development, design and opening. However, if the airport is not debt free, the costs for the travelling public will be much higher than they should be due to higher air fares and the availability of fewer destinations — in recent weeks a decision was made by Aer Lingus to withdraw the Cork to Madrid route, for example. Other operators are not coming to Cork and other destinations will be dropped because costs will be higher for operators using Cork Airport.

This is the consequence of the decision the Government has left with Cork Airport. There is turmoil in the boardroom and this uncertainty does not serve the public in Cork well. I appeal to the Government and to the Minister, at this late stage, to honour the commitments announced by the former Minister for Transport, Deputy Seamus Brennan.

Pat Gallagher (Donegal South West, Fianna Fail)
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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.