Dáil debates

Thursday, 6 December 2007

Other Questions

Airport Development Projects.

3:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 8: To ask the Minister for Transport his plans for the operation of terminal 2 in Dublin Airport; if the operation of this terminal will be put out to tender; and if he will make a statement on the matter. [32938/07]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The Government decision of May 2005 on the aviation action plan envisaged a tender process being held in relation to the operation of the second terminal at Dublin airport. Now that the planning issues relating to the terminal have been settled and construction has started, I anticipate that the design and running of an appropriate tender process will proceed next year. The tender process will have to be structured so as to ensure the schedule for the opening of terminal 2 is adhered to.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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This is an issue raised by the Commission for Aviation Regulation in its submission to the Department. The terminal will carry 15 million passengers per year and, including the associated works, will cost over €600 million. It will be a unique location, one of two in Europe where one can clear US customs. It is important that it is run effectively, whether by a designated air carrier or a private consortium linked to transport carriers. It is important the Minister provides us with a timetable for the process. When will he advertise for tenders for the project?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Drafting of the tender documents is already under way. It is intended that this documentation will be finalised by the first quarter of 2008. The procedure should take approximately 12 months. The first part of 2008 will largely be taken up with the design of the tender process and various other procedures that have to take place, including notifications to the Official Journal of the European Union, and so on.

The question raised by the Deputy is also a matter of concern for me. T2 is scheduled to be operational in early 2010. The tender process is being geared towards ensuring that this will not be held up by a delay in appointing the operator.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Commissioner for Aviation Regulation, Cathal Guiomard, stated that airport charges are likely to rise by 22% between 2010 and 2014 to pay for T2. Does the Minister expect that this will happen and will these increases be similar to those that occurred recently in respect of long-stay charges? When T2 is operational, will there be any excess capacity? Has the Department considered what will be the ultimate size of the development? The authorities at Heathrow have stated that its passenger numbers will increase to 100 million from 67 million. The numbers travelling through Dublin Airport are rapidly heading towards 30 million. Has any long-term thinking been done in respect of this matter?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The Commissioner for Aviation Regulation has not made a decision in respect of charges post-2010. He has indicated that the T2 project will have some impact but it would not be right for me to second guess him. The commissioner's aim is to ensure that the airport can operate in the most economically efficient manner possible. He also has a role and a remit in the context of protecting consumers. On the one hand, the airlines have stated that the increases he is giving are too high while, on the other, there are those who say the needs of consumers are not being adequately considered. The truth probably lies somewhere in between. One can never win when one is a regulator.

I am informed that the Deputy's figures in respect of capacity — namely, that passenger numbers at the airport are heading towards 30 million — are not incorrect. The airport is being developed in such a way as to allow it to cater for this number of people by 2015 or thereabouts. The total capacity should be approximately 33 million. As we near that, and even with second runways, and so on, it would be necessary to query how much more capacity could be added. The latter will be considered as part of a process that will be entered into at that point. The capacity being provided will be sufficient for the short to medium term and there are those who would say that it will also probably be adequate for the longer term.

The Deputy also referred to excess capacity. It would be reasonable to ask what constitutes excess capacity. If we complete the various envisaged projects and five or ten years' worth of spare capacity is created, we must ask if this is this excess capacity or is it merely planning for the future. The debate and arguments in respect of this matter have been ongoing for some time. I tend to favour the view that infrastructure should be provided, to the greatest extent possible, in anticipation and without wasting taxpayers' money.