Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 10: To ask the Minister for Transport the progress to date in the restructuring of the State airports; the date he foresees independent Cork and Shannon Airports; and if he will make a statement on the matter. [32906/07]

Tom Hayes (Tipperary South, Fine Gael)
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Question 54: To ask the Minister for Transport his views on the future of Cork Airport and the management of its debt; and if he will make a statement on the matter. [32930/07]

Emmet Stagg (Kildare North, Labour)
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Question 68: To ask the Minister for Transport when Cork and Shannon Airports will become fully independent; the issues that have still to be resolved in statutorily separating Cork and Shannon Airports from the DAA; the position on the burden of debt on Cork Airport; and if he will make a statement on the matter. [32801/07]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 10, 54 and 68 together.

The State Airports Act 2004 provides the framework for the establishment of Shannon and Cork as independent airports. Under the Act, both the Minister for Finance and I must be satisfied as to the state of operational and financial readiness of the three airports before any vesting of assets can take place.

The timing of airport restructuring will depend on creation of the appropriate conditions that will ensure the financial sustainability of each of the three State airports. The restructuring process will require coordinated strategies to achieve the operational and financial readiness of each airport. In this regard, the Dublin Airport Authority, DAA, has a key role to play in finalising the financial framework and co-ordinating the individual business plans for the three airports that will enable separation to take place.

The Shannon Airport Authority, SAA, recently submitted its draft business plan to the DAA and I understand that discussions have commenced between the DAA and the SAA on the content of the plan. In parallel with this process, I expect a similar engagement to occur between the Cork Airport Authority, CAA, and the DAA relating to the Cork Airport business plan, a draft of which was submitted to the DAA in recent days.

The debt issue is clearly crucial to the Cork business planning process and there will have to be agreement on this point between the Cork Airport Authority and the Dublin Airport Authority before the Cork business plan can be completed and submitted to the Minister for Finance and me. The Government's position is that the funding of the new terminal and other works at Cork Airport will have to take account not only of what is commercially and financially feasible for Cork Airport, but of what is commercially and financially feasible for the Dublin Airport Authority.

Subject to satisfactory progress being made on the plans, I await the DAA's overall considered views on airport separation to enable the plans to be examined by the Minister for Finance and me. Only then will I be in a position to consider the timing and sequencing for the restructuring of the three State airports.

Fergus O'Dowd (Louth, Fine Gael)
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The independence of the State airports is a serious issue, particularly as it relates to their future financial viability. The critical issue that arose in respect of the Shannon slots and the role of the Dublin Airport Authority in not informing its subsidiary, Shannon Airport, as to what was happening has raised serious questions regarding the future of the region. If the Shannon Airport Authority had been independent, I presume the Minister's Department would have contacted it and alerted it to the significant changes that would result from the decision made by Aer Lingus.

The State Airports Act has been in place for three years. That is a long period for this matter to have dragged on. That Shannon Airport is not independent has brought about serious repercussions for it in the context of the Aer Lingus decision. It is unforgivable and unacceptable that the Dublin Airport Authority did not inform Shannon as to the nature of that decision.

It is intended that these airports will compete for new business, particularly in the context of the open skies policy, in the future. The Shannon region is believed to be under significant threat unless a viable business plan is brought forward in respect of its airport. In addition, everyone, including the Government, must row in and draw up a new overall plan in respect of Shannon and Cork.

It was announced in budget that funding for regional airports will increase by approximately €20 million. Is any of that money meant for either Shannon or Cork? I accept that neither of them might be perceived as regional airports.

Noel Dempsey (Meath West, Fianna Fail)
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The amount in the budget for regional airports does not apply to Shannon and Cork Airports, which are State airports. The Shannon Airport Authority has submitted its plan and the Government could do nothing about restructuring until it was submitted. Discussions have taken place between the SAA and the DAA, with progress being made. If agreement is reached, the DAA will make a submission to the Government and the Minister for Finance and I will consider it. We will make a decision without undue delay. The same procedure applies to Cork. The CAA has to submit its business plan, which I think has been done. The DAA will then have a look at it.

There are two quite distinct issues involved for these airports. Shannon Airport is as it was, but there has been substantial investment in Cork in the past few years. Without taking the land into account, the assets there are valued at €360 million and the discussion has been about the wish of the CAA to be debt free. From the point of view of the DAA, there are huge investments that must be made in Dublin and it cannot agree to a plan which affects its financial status and business borrowing. The DAA must provide the facilities at Dublin Airport. I hope that both sides can come up with an agreement.

Tommy Broughan (Dublin North East, Labour)
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Is it not the case that the board of Cork Airport has submitted a plan that would include carrying a debt of €60 million? Some board members are anxious that the debt would be no more than €20 million. Has the Minister any definitive information in that regard? Is it not the case that the DAA wants Cork to carry up to €100 million in debt?

The Joint Committee on Transport spent about four hours last week examining the debacle about Shannon Airport. It is one of the great mysteries of our time that when the Minister met four aviation area principal officers for a couple of hours upon taking up his new role, the Shannon slots issue did not come forward for discussion. It is an incredible mystery and we may never get to the bottom of it. Given that we are in the situation we find ourselves, why did the Minister not respond yesterday in the budget to the €53 million package put forward by the Shannon business community? Deputy Jan O'Sullivan has raised it many times in the House. That money would be used for route support or marketing support and it would enable Shannon Airport to be in the position where it can become truly independent and viable. We searched the whole budget for that €53 million and went through all the related Departments, yet we could not find any of the money. I thought this would be one of the positive aspects of yesterday's budget, but there was nothing.

Many of us in Opposition, with very little resources, have been trying to tease out the possibility of having some kind of PSO in conjunction with the British Government, as part of the development of the peace process, whereby if Belfast was to be facilitated, Shannon could get back some of its slots. We believe that this is possible under European legislation. Deputy O'Dowd and one of his colleagues have argued this very strongly.

Is the Minister aware of the concern expressed by many workers at Shannon Airport that if the independence of the airport is handled badly, and if the Government fails to support Shannon properly in its future plans, we could end up with vicious cost cutting in the future? This will have grave repercussions for the jobs of workers in Shannon, which has always been a growthcentre.

Noel Dempsey (Meath West, Fianna Fail)
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The report to which the Deputy refers was drawn up by groups in the mid-west as part of a consultation process on a document prepared by the Department of Transport on foot of the open skies policy. It was basically a request for €44 million in market support and €9 million in route support for Shannon. I have explained on many occasions that it cannot be done because it against EU state aid rules to provide any money for a scheme of that nature.

Tommy Broughan (Dublin North East, Labour)
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How can the French do it? Monsieur Sarkozy would do that.

Noel Dempsey (Meath West, Fianna Fail)
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It is illegal and we would not get away with it. The €44 million sought in market support is equivalent to the entire Tourism Ireland budget. We are providing about €2 billion in transport infrastructure in the Shannon region. About €13 million is being provided for broadband roll-out. The DAA has invested about €100 million in Shannon Airport in the past four or five years. The area is being well supported.

The matter of a PSO for the Shannon to London route is being pursued by the Department with the EU. We must first find out whether the EU would favour this kind of route. The normal PSO is from peripheral regions within a country. We would have to get approval from the British Government for this and I am not sure how forthcoming that would be for flights into London Heathrow.

Tommy Broughan (Dublin North East, Labour)
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The Transport Minister there is an Irish woman.

Noel Dempsey (Meath West, Fianna Fail)
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Shannon Airport Authority wants independence and provided we can come up with a plan, it should get it. It must stand on its own two feet subsequently. There will be an open, competitive environment and restrictive practices of any nature will have to end.

Fergus O'Dowd (Louth, Fine Gael)
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I think there are 252 PSOs allowed in Europe at the moment. There is no reason Shannon cannot have one. Notwithstanding the fact that it is a State airport, Shannon is a badly served region in terms of connectivity.

Noel Dempsey (Meath West, Fianna Fail)
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We have six of those PSOs on different routes, so we are familiar with the concept. However, they are basically from peripheral regions within the country to a more centralised location. From that point of view, it is different because we would have to get approval from another Government if flights were going to another jurisdiction. That is only the part of the process.