Simon Coveney (Cork South Central, Fine Gael)
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I hope I will get more direct answers to the question I raise.

Michael Ahern (Cork East, Fianna Fail)
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Look at all the money that was put in over the years.

Simon Coveney (Cork South Central, Fine Gael)
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I hope the Minister of State will take this issue seriously.

Michael Ahern (Cork East, Fianna Fail)
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I was there when a Government refused to put a farthing into the place. We went into Government and increased——

Jan O'Sullivan (Limerick East, Labour)
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We are dealing with Cork Airport.

Ulick Burke (Galway East, Fine Gael)
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We know the answer already.

Simon Coveney (Cork South Central, Fine Gael)
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The problem is that the Minister of State is making a joke out of an issue and will not let me speak on it.

Deputy Michael Ahern is one of the Ministers who has allowed Cork Airport to be saddled with a debt that it should never have had, because of lobbying from the Dublin Airport Authority, and from Dublin Deputies.

Michael Ahern (Cork East, Fianna Fail)
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Of course, that is not true at all.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister of State failed. He shall have his opportunity in a minute and I look forward to hearing what he has to say. The reality is that back in 2003, the Minister made the right decision, split up Aer Rianta and set up three independent airports at Cork, Shannon and Dublin — to provide some competition between them. It was also a correct decision to go ahead with the new airport terminal in Cork Airport, but Aer Rianta was to build it at the time the decision was made. In order to get Cork Airport and its staff to buy into the separation of Aer Rianta and allay concerns about the cost of building the new terminal in Cork, it was made absolutely clear at the time that an independent Cork and Shannon would be able to compete with Dublin on a debt-free basis.

Members of the new board appointed by the Minister at the time were given assurances that they would take up their positions on the basis of managing and developing a new independent Cork Airport, with a debt-free status. Since then everything has changed. The cost of the terminal was more than what had been budgeted for, but the financial management of that project was handled by the Dublin Airport Authority, not the Cork Airport Authority. Now, following a report by Mr. Peter Cassells — an initiative to try to distance Government and ministerial responsibility from this issue which was essentially based on a political promise — Cork Airport is being saddled with a debt of €113 million, which it has to service on an annual basis. No doubt, the Minister of State will dismiss this by saying Cork Airport has a land bank which it can sell off to finance some of that debt. That land should have been used for future expansion and growth at Cork Airport — to put in place moneys for an aggressive marketing budget so that Cork can compete aggressively, grow and take traffic away from Dublin, which is overcrowded.

Dublin Airport needs a competitive Cork Airport as much as Cork does. Yesterday, we saw the result of the betrayal of Cork Airport by Cork Ministers and Government Deputies, when the chairman of the authority announced he would step down in June and not stand for re-election. This was a chairman we all hoped would carry Cork forward and develop it into an airport that has the potential to grow even more rapidly, given its terminal has the capacity to take between 5 million and 6 million passengers. Instead, we have an airport that will be less competitive than it should be and more expensive for airlines and passengers because of the fact that it has to service the debt on which we were given assurances in 2003, confirmed again in 2004 before the new board was set up at Cork.

People will dismiss this issue by asking why Dublin should pay for Cork, insisting the Dublin Airport Authority has enough to worry about in developing Dublin Airport. The reality is that when Aer Rianta was split up, the Dublin Airport Authority was given assets to compensate it for taking on debt at Cork and Shannon — the Great Southern Hotel group, which it subsequently sold for €230 million and Aer Rianta International.

The board of Cork Airport voted to accept a debt of €113 million last week on the basis of another promise from the Minister to the effect that if the authority got into difficulties in servicing debt in the future, the Government would assist it on that. I want the Minister of State to clarify for the House this evening what the basis of that promise was and what the actual commitment from this Government is towards assisting the Cork Airport Authority in servicing debt into the future.

Michael Ahern (Cork East, Fianna Fail)
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On the announcement yesterday of Mr. Joe Gantly's decision to step down from the board at the end of July next, the Minister paid tribute to his achievements during his time as chairman. In responding to the Deputy, I propose to set out the initiatives that the Minister has taken to facilitate the separation of Cork airport from the DAA, a key objective that he shares with Mr. Gantly. The Minister has co-operated with Mr. Gantly in the endeavour to resolve outstanding issues relating to separation.

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 airport are required to prepare business plans for eventual separation.

The Cork business plan was submitted to the DAA at the end of last year and subsequently forwarded to me with DAA's commentary. There were clear divergences between both authorities on the business plan and particularly on the level of debt that the CAA would absorb in its business plan.

To break the impasse between the two bodies the Minister decided to appoint Mr. Peter Cassells to engage in a constructive dialogue with the CAA and DAA boards in order to establish whether there was a basis for a speedy resolution of the disagreement between the two parties. Mr. Cassells reported to the Minister on the matter and the Minister published his report on 2 April.

His conclusions and recommendations were the outcome of that dialogue with the DAA and CAA. They provided an opportunity for a final decision to be made on the financial consideration to be paid by the CAA in respect of the transfer of net assets of €220 million on separation. In essence, they provided the Cork Airport Authority with a funding solution post separation of €20 million to €40 million, in return for the transfer of net assets of €220 million, while reducing DAA's indebtedness by €113 million.

The Minister believed Mr. Cassells's recommendations represented a sensible solution to this impasse, which he urged both parties to accept as soon as possible. He then asked Mr. Cassells to assist the two boards as regards bringing the issue to a speedy, mutually acceptable conclusion. Mr. Cassells' subsequent efforts lead to the acceptance of his report by the CAA Board on 10 April last.

The Minister would point out, as previously stated, that he gave no assurances to the CAA about financial support from the State.

Simon Coveney (Cork South Central, Fine Gael)
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That was not on, was it?

Michael Ahern (Cork East, Fianna Fail)
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It is Government policy that commercial State-sponsored bodies should operate to a commercial mandate, to include the capacity to finance capital investment without Exchequer support. The State Airports Act envisages that the three State airports will operate to such a commercial mandate. Any proposal to depart from this policy would, in any event, require EU Commission approval under the relevant Commission guidelines for state aid in the airport sector.

A process of engagement will now commence with all the relevant parties on implementation and the technical and legal issues involved will be progressed by the Cork and Shannon airport authorities and the Department.

It is the Minister's intention therefore to proceed without delay to effect the full separation of the three State airports, as set out in the State Airports Act 2004. This process will involve the preparation of revised business plans taking account of the Cassells' recommendations.

Simon Coveney (Cork South Central, Fine Gael)
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This is a joke.

Michael Ahern (Cork East, Fianna Fail)
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In due course, the business plans will be submitted to the Minister for Transport and the Minister for Finance for approval as regards the State airports' financial and operational readiness.

The Minister looks forward to working with the CAA board, as it proceeds with the next steps for the airport's separation from the DAA. Also, as part of this process, there will be a need to engage in necessary consultation with stakeholders. In this regard the Minister recognises that there is an understanding with ICTU concerning the framework for consultation with trade unions on the airport business plans.

The Minister would reassure all concerned that the legal commitments enshrined in the State Airports Act concerning the protection of terms and conditions of employment of State airport employees, as well as the requirements for consultation on future collective bargaining structures, will be honoured in full.

Simon Coveney (Cork South Central, Fine Gael)
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Will the Minister of State have the decency to answer in the 30 seconds still remaining? I asked the Minister of State to outline contacts the Minister has had with the chairman of the board. He has not mentioned this once.

Michael Ahern (Cork East, Fianna Fail)
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I shall bring that matter to the attention of the Minister.

Simon Coveney (Cork South Central, Fine Gael)
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That was what I asked about, but the Minister of State gave us a history lesson.