Tommy Broughan (Dublin North East, Labour)
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Question 2: To ask the Minister for Transport when Mr. Peter Cassells is due to report on the dispute over the proposed debt level of Cork Airport in its separation from the Dublin Airport Authority; the terms of reference of Mr. Cassells's mediation process; his views on the separation of Cork, Shannon and Dublin Airports; the level of debt he estimates Dublin Airport will accrue if the separation process goes ahead; and if he will make a statement on the matter. [9603/08]

Noel Dempsey (Meath West, Fianna Fail)
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I have asked Mr. Peter Cassells to consider the disagreement between the Dublin Airport Authority and the Cork Airport Authority on the portion of the overall Cork Airport debt to be borne by the CAA on its separation from the DAA. Mr. Cassells's brief is to establish whether it is possible for the two boards to resolve their long-standing difference on this core issue. I have asked him to report to me by 7 March on this matter.

My Department is currently considering the business plans prepared by the three airports in the context of their separation into independent entities. I hope to make progress on this in the near future and in this regard Mr. Cassells's report will be very important. In the circumstances, I do not propose to comment at this point on the question of the allocation of debt on airport separation.

The terms of reference for the engagement of Mr. Cassells are as follows: to facilitate a dialogue between DAA and CAA with a view to finalising details relating to the financial consideration to be paid by the CAA to the DAA in respect of the transfer of assets to the Cork Airport Authority on separation, under the State Airports Act 2004, taking account of the following — the cause of the disagreement between the two boards; the need to ensure the financial sustainability of all three State airports under the State Airports Act 2004; Cork Airport's business plan; the DAA's commentary on that business plan and any associated consultants' reports considered relevant; and the need for a speedy resolution of this dispute so that the two boards are in a position to finalise business plans for each airport on a financially sustainable basis under the State Airports Act 2004; and to report to the Minister by Friday, 7 March 2008.

Tommy Broughan (Dublin North East, Labour)
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I tabled a question on the Dublin Port tunnel on behalf of the Labour Party similar to one in a Fine Gael Member's name. My question was ruled out of order on the basis of semantics, which is regrettable and very undemocratic. I raised the issue with the Leas-Cheann Comhairle on the Order of Business.

Charlie O'Connor (Dublin South West, Fianna Fail)
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My advice to the Deputy is to contact the Office of the Ceann Comhairle.

Tommy Broughan (Dublin North East, Labour)
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I certainly will.

A number of reports appeared in the media to the effect that the Minister may be reconsidering the idea of separating Dublin, Cork and Shannon airports. Is it the case that he may decide not to proceed with the provisions of the 2004 Act? Many commentators have observed that there is no commercial logic to the separation.

A pre-election promise was made to the people of Cork that they would not be saddled with a major debt. Has the Minister accepted, in full, the business plans relating to Cork and Shannon airports? Does he have a rough idea of what will be the three debt levels? Would he be concerned that Cork might be left with a debt of anything between €100 million and €200 million, while Shannon might have a debt of €70 million? It is interesting that Dublin Airport might be obliged to bear a debt of €500 million. Under its development plan, Dublin will also be obliged to pay out €1.2 billion, a figure that is six times greater than the projected earnings for the airport. Is the Minister concerned with regard to how matters might develop in the context of the debt issue?

A fundamental point was raised in 2004, namely, whether it would be easier for the three airports to carry a substantial debt of this nature, which is basically Transport 21-related debt, together rather than separately? Are there any circumstances in which the Minister might reconsider the proposal to separate the three airports?

Noel Dempsey (Meath West, Fianna Fail)
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As with so many speculative reports in the newspapers, there is absolutely no truth to the rumour that I am reconsidering the State Airports Act 2004 with a view to not proceeding with the separation.

Prior to the general election, the Government made it clear that the restructuring proposed under the State Airport Act would have to be done in a way which would ensure not only that the future viability of Cork Airport would be protected but also that the viability of Shannon and Dublin would also be guaranteed. The Deputy is correct to state that, in the context of the improvements to be made, a cumulative amount of €1.2 billion — much of which will be carried in the form of a loan — will have to be spent at Dublin Airport. In such circumstances, every possible source of income must be examined. The business plans must be considered in the overall context and not just in respect of Cork.

Peter Cassells is trying to facilitate dialogue so I will not even speculate as to the levels of debt, if any, each of the airports might be obliged to bear following the conclusion of the process. It would not be fair to engage in such speculation.

The book value of the assets to be transferred to the Cork Airport Authority from the Dublin Airport Authority is some €220 million. Information from a number of sources indicates that the likely realisable value of those assets would be considerably higher. In such circumstances, it would be reasonable to expect Cork to pay something towards the costs involved.

Tommy Broughan (Dublin North East, Labour)
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Michael O'Leary forcefully expressed the concern many people harbour, namely, that those who travel by air will be obliged to bear the debt — the largest proportion of this will relate to Dublin — that will result from separating the three airports. Does the Minister share this concern? He announced that Mr. Cassells will be making his report tomorrow. Will that report be made public?

Noel Dempsey (Meath West, Fianna Fail)
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As soon as the report is available to me, it will be considered. It will become public at some stage thereafter. Mr. Cassells is due to report to me in respect of this matter tomorrow.

All airports are funded through charges levied on passengers. I refer here to landing charges, charges levied by airlines on customers, car park charges, etc. It is not rocket science to state — as did Mr. O'Leary — that consumers and customers will be obliged to pay for the airports. These people use the airports and should pay for them. I do not really know what point Mr. O'Leary was trying to make.

From the point of view of the Government and the State, it is important that the facilities at Dublin, Cork and Shannon airports should reflect well on our country. People's first impression is often taken from the airport at which they arrive. In my opinion, everyone agrees that we should have proper facilities in place.